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Since it's greyed out, it seems like the OTA update is not available for your phones customization. You will have to update the phone using Wi-Fi or a computer.
http://www.sonymobile.com/update
You can see more information about this on the following topic:
http://talk.sonymobile.com/t5/Xperia-Z1-Compact/Unable-to-update-via-OTA/td-p/635355
Go to update centre-settings-update via wifi only(uncheck).
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Is the Wi-Fi only greyed out? In that case the option is probably not available for your device customization. This is common in some operator branded customizations.
Since it's greyed out, it seems like the OTA update is not available for your phones customization. You will have to update the phone using Wi-Fi or a computer.
http://www.sonymobile.com/update
You can see more information about this on the following topic:
http://talk.sonymobile.com/t5/Xperia-Z1-Compact/Unable-to-update-via-OTA/td-p/635355
Anytime, glad you could use PC Companion!