Excellent sponsorship from the Cypriot government has led to a dramatic increase in demand for participation in government plans for the Renewable Energy and Energy Saving Fund.
In particular, according to the Fund Management Committee, in 2020, 5,768 applications were submitted from the country's residents in the amount of 6 million euros. Of these, government subsidies were approved in the amount of 5,432,868 euros, compared to 2,078,996 euros in 2019 and 1,417,752 euros in 2018.
The sponsorship plans implemented by the Foundation in 2020 mainly focused on encouraging citizens to use renewable energy sources and saving energy in homes and businesses. Globally, the program aims to reduce energy consumption and carbon footprint and help families in need.
The first plan, called the Renewable Energy Subsidization and Energy Savings Plan for Homes, provided subsidies for:
- thermal insulation of the roofs of already built buildings (in this category, the subsidy covered 30% of the costs, or up to EUR 1,500),
- thermal insulation of the roofs of constructed buildings in combination with the installation of a solar energy system using the net metering method (here the subsidy covered 35% of all costs, but could not exceed 1,800 euros, and 300 euros per kilowatt)
- installation of a solar energy system using the net metering method in already constructed buildings (the subsidy was calculated based on the capacity of the solar energy production system (250 euros per kilowatt), but could not exceed 1,000 euros, and for consumers from vulnerable categories of the population, the subsidy was calculated according to the formula 750 euros per kilowatt, but could not exceed 3,750 euros (category 3B)).
In total, 582 applications were submitted for subsidizing roof insulation, the amount of sponsorship amounted to more than 900 thousand euros. Also, applications were received for thermal insulation of roofs in combination with the installation of photovoltaic systems, and the amount of sponsorship amounted to 184 thousand euros. In addition, 2,465 applications were received from residents of Cyprus to replace photovoltaic systems with displacement measurements in homes. The amount of sponsorship was 2.178 million euros.
The Foundation's second grant plan, entitled “A plan to subsidize the installation or replacement of solar energy systems for the production of hot water in private homes,” received a response from 1950 people.
Only individuals were eligible for the subsidy. The plan was divided into the following points:
- subsidies for the installation or replacement of the entire solar water heating system (metal tank and panels), the amount of the subsidy provided is 350 euros;
- subsidy for installation or replacement of panels only, amount - 175 euros.
The aim of the plan was to provide financial incentives to install or replace solar hot water production systems in homes. For the implementation of the project, the Fund provided sponsorship assistance in the amount of 232.5 thousand euros.
It should be noted that from January 1, 2020, the fee is €0.005 per kilowatt-hour of electricity consumed. Vulnerable electricity consumers pay half of their consumption fees. It is noted that revenue from consumption tax in 2019 amounted to 46 million euros, and in 2018 amounted to 45.5 million euros.
It should be noted that the Fund is the main financial instrument of the Republic for the promotion of renewable energy sources and energy savings in order to achieve the relevant mandatory national goals set out in the relevant European directives. The main action of the Fund concerns the implementation of financial incentive plans for the promotion of renewable energy sources and energy conservation.
For 2021, the Fund's budget was approved in the amount of 48.6 million euros. The head of the Fund noted that in this way Cyprus seeks to reduce the cost of electricity for local households and businesses and, at the same time, to contribute to the implementation of national goals in the field of renewable energy and energy conservation.