Cyprus Enhances Solar Support For Vulnerable Homes: Increased Subsidies Drive Renewable Energy Adoption

In line with the Governance Program of the President of the Republic, the Council of Ministers, in its recent session approved a proposal by the Minister of Energy, Trade, and Industry to augment the sponsorship for installing photovoltaic systems in homes of vulnerable electricity consumers. This pertains to CATEGORY 3B of the “Sponsorship Plan to encourage the use of RES and Energy Saving in residences 2022-23,” co-financed by the RES and EXE Fund and the “Cyprus of Tomorrow” Recovery and Resilience Plan.

Under this initiative, the subsidy for homes with vulnerable electricity consumers is increased from €1,000 to €1,250 per installed kW of photovoltaic, with a maximum subsidy amount of €6,250, up from €5,000 previously. This adjustment is calculated based on historical data to ensure approximately 100% sponsorship.

Furthermore, in a move to facilitate a smooth transition and maintain fairness in the market, the Council of Ministers has decided to extend the existing “Sponsorship Plan to encourage the use of Renewable Energy Sources and Energy Saving in residences.” The extension will continue until the seamless replacement by a new Plan of Sponsorships, expected to be announced at the beginning of 2024. Notably, preparations are underway for an upgraded Sponsorship Plan, featuring the new category “Photovoltaics for All.”

The extension of the application submission period for the existing scheme varies across categories:

• CATEGORY 1: Roof Thermal Insulation – Extension up to 1 month after the approval of the new Grant Scheme.
• CATEGORY 2: Roof Thermal Insulation combined with Photovoltaic System installation – Extension up to 3 months after the approval of the new Grant Scheme.
• CATEGORY 3A: Installation of Photovoltaic System – General Category – Extension up to 3 months after the approval of the new Grant Scheme.
• CATEGORY 3B: Installation of Photovoltaic System in homes of vulnerable consumers – Extension until the approval of the new Grant Scheme.

This extension aims to provide assurance to citizens undertaking corresponding investments until the new Grant Plan’s approval, aligning with the objectives of the Cyprus Recovery and Resilience Plan. The decision follows consultations with the Coordinating Authority of the Recovery and Resilience Plan, demonstrating the government’s commitment to promoting renewable energy and sustainability.