Cyprus Increases Solar Net Metering Funding

The Cypriot cabinet approved a proposal from the energy minister to expand the subsidy scheme of the country to net metering, and energy-efficiency measures and add EUR40 million in funding to the program.

The total amount of state funding for Cypriots to support the self-generation of electricity in the country and energy efficiency measures in homes is now EUR70 million. This figure covers the period 2022-23.

Cabinet also approved a proposal that would expand the scope of what “vulnerable citizens” can apply for these subsidies. Natasa Pilides, Energy Minister, stated that this means that another 30,000 households can apply for state funding. This brings the total number of households eligible to request assistance to 80,000.

The government’s program will allow Cypriot households to apply for funding to help install PV systems. These systems can be operated through net-metering and virtual net-metering schemes. The maximum subsidy for households that apply for PV net-metering is EUR375/kW. However, for vulnerable households, it rises to EUR1,000/kW. The maximum subsidy for vulnerable and non-vulnerable households is EUR1,500/kW, and EUR5,000/kW, respectively.

According to the ministry of energy, Cyprus also plans or has already introduced EUR160 million worth of additional programs to generate electricity from its own energy and implement energy efficiency measures in homes, businesses, and buildings municipally by the end of this year. The country launched a new EUR1.5million scheme earlier this year to support the installation of PV and battery systems. This was specifically targeted at owners of hybrid and electric vehicles.

To date, the nation’s net-metering segment and net billing segments have added approximately 100 MW to their solar market capacity. The country’s total installed PV capacity is approximately 335 MW.

Only 16% of electricity generated in the country is currently produced by renewable power. Even more disappointing is the fact that the Cypriot 2030 target aims to have only a 26% share of renewables as gross final electricity consumption.