PN planning €60m solar panels investment to cover 30% cut in energy bills

Updated 4pm

A Nationalist government would cut electricity bills by investing €60 million in solar panels to reduce energy generation costs.

PN leader Alex Borg and shadow minister Mark Anthony Sammut said this would result in savings of around €30 million.

At a news conference on Monday, Borg said a Nationalist government would reduce electricity tariffs on the first 6,000 units of consumption by households, remove meter rental fees for residential properties, farmers and voluntary organisations, and expand the eco-contribution to ensure that single people can benefit.

The PN leader said a PN government would be investing €60 million into a solar panel network to produce clean energy. This would cut the cost of energy generation and allow for lower electricity rates.

Benefits for single persons

Borg said that times had changed and people now used energy differently, with many working remotely and using appliances such as induction ovens. Single people, he said, often did not qualify for the eco reduction because they still had to use appliances as larger households. They could not use half a television or half a cooker, he said, which was why a new PN government would raise the eco-contribution threshold from the first 2,000 units consumed per year, to 3,000 units. A single person who qualifies for the eco-reduction will see average reductions of 42%.

Lower tariffs for all households

Shadow minister Mark Anthony Sammut said the annual electricity meter  rental fee (which ranges from €65 a year for single phase and €195 a year for 60-amp three phase)  would be removed for all residential properties in a measure that would benefit 228,000 residences at an estimated cost of €17 million.

The PN would also remove the second tier of energy pricing (12c98), which comes into force after the consumption of 2,000kWh. This would effectively broaden the first tier - currently 10c47 - to cover the first 6,000 units of electricity - at a cost of €8 million.  

Farmers would also be exempt from paying the annual meter rental fee and benefit from a further 15% discount on their non-residential tariff, while voluntary organisations would also have meter rental removed.

Offsetting the cost

All this would cost €30 million a year. Explaining how this would be offset, Sammut said that the average price of energy currently stands at 21c per unit, broken down into 15c for generation, 4c for distribution and 2c in carbon-related costs.

The investment in solar panels on government buildings, schools and car parks would remove most of the generation and carbon costs, reducing the price by 17c per unit - resulting in savings of around €30 million, which would fund the measures.

This would require a €60 million one-time investment to install the panels on government property, schools and public parking, without taking up agricultural land.

The plan would allow the country to generate 175GWh, or 5% of total energy consumption, from solar energy, lowering the average unit cost of electricity and enabling lower bills for households, farmers and NGOs.

He said that all this would not go against the subsidy structure but would reduce the need for subsidies over time. 

Sammut said the PN's measures would be implemented from the first budget.

He said PN measures tailored for businesses will be unveiled in the coming days.  

PN candidate Jonathan Muscat spoke about supplementary measures, including greater transparency in energy contracts. He noted that Enemalta has not published its audited accounts since 2022, and pledged a clean-up at billing entity ARMS Ltd, as well as clearer, more understandable bills.

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