Compared to many of its European neighbors, Cyprus lags far behind in the use of renewable energy. Given the island's dependence on oil and gas imports, the consequences of this lag are now being felt by all electricity consumers in the country. However, a combination of some factors could soon be an instrument of change of the status quo.
On Thursday, January 25, the Cypriot Cabinet approved the "Solar Energy for All" program.
The scheme aims to provide the opportunity to install a solar energy system for all household consumers on the island with financial support from the state.
Even those who have no down payment will be able to install solar panels with a capacity of up to 4.16 kW on their homes (the capacity is defined as the average household consumption, and the total electricity consumption in the previous year should reach no more than 6 thousand kWh). Applications for participation in the state program will begin to be accepted electronically at the end of February 2024. The review period will be about three months. The subsidy will be provided through the RES and Energy Conservation Fund. The total budget of the program is 30 million euros. It is expected to be able to cover 6,000 applications.
All beneficiaries will be divided into five groups:
- Category A1 "Solar panels - general scheme".
The beneficiary will be able to receive a subsidy of €375 for each kilowatt of battery capacity. The maximum grant will be up to 1.500 euros (4 kW). The remaining amount for the purchase of solar panels must be sponsored by the beneficiary (personal funds, bank loan, other). For houses in the mountainous areas of the island, there is a 50% increase in the subsidy.
- Category A2 "Solar panels for vulnerable populations"
Representatives of this group of consumers will be able to receive from the state 1.250 euros for each kilowatt of photovoltaic panel capacity. The maximum grant can reach 6.250 euros (100% for systems up to 5 kW).
Category A3 "Solar panels for all"
For each kilowatt of capacity of the photovoltaic system purchased, 250 euros will be available. The maximum subsidy amount will be 1 thousand euros. Also in this category it will be possible to receive an additional subsidy of up to 4000 euros (1 thousand euros for each kilowatt), subject to a gradual payment of the amount received once the solar panels have been installed (150 euros every two months).
- Category B1 "Ceiling insulation - general scheme"
The consumer will be able to insulate the roof with a 50% subsidy. At the same time, the maximum amount payable can reach 2,500 euros and/or 25 euros per m2. For houses in the mountainous areas of the island, the subsidy is increased by 50%.
- Category B2 "Ceiling insulation for vulnerable people"
Representatives of this group of consumers will be able to receive from the state 75% coverage of their costs. At the same time, the maximum amount of payments can reach 3.750 euros and/or 37.5 euros per m2.
Thus, for a household with an average consumption of 1.100 kWh for two months, which currently corresponds to an electricity bill of 370 euros for two months, after the installation of a 4 kW solar energy system, the bill will be reduced to 207 euros. This amount will include €150 for the repayment of the debt for the installation of the system. After repayment, which is expected to take 4 to 5 years, the electricity bill will decrease to €57 for two months.