Background information

The measure was decided on 19 October 2023 by the Cabinet. It is found among the various support schemes for the green transition of the Renewable Energy Sources and Energy Conservation Fund promoting energy efficiency and renewables. It follows the consequences of the on-going increases of fuels and electricity but the reactions of the society as well. The legal reference is expected to be available soon.

Content of measure

The scheme aims to provide the opportunity to households who cannot afford to install a photovoltaic system up to 4.16 kW. 6,000 applicants will be benefited by the scheme at the first phase, who will receive pre-approval and will be able to proceed with the installation with no upfront capital and savings from the first day of connection, at which point the system will start to be paid off with bi-monthly charges of €150 through the electricity bill.

The amount for the purchase and installation of the system will be provided directly to installation companies, which must be on the relevant register of installers participating in the scheme. The amount of the grant will cover the VAT and the company will take over part of the paperwork.

It is expected that details on eligibility criteria for consumers and installation companies will be announced soon.

Use of measure

The amount of the scheme is estimated at €30 million for 6,000 beneficiaries, which will come from the Renewable Energy Sources (RES) and Energy Conservation Fund, which is the main financial instrument of the Republic of Cyprus for the promotion of renewable energy.

An example from the presentation of the scheme, a household with an average consumption of 1,100 kWh per two months, which currently corresponds to an electricity bill of €370 will be reduced to €207, which includes €150 to pay off the system after the installation of a 4kW photovoltaic system. After the system is paid off, which is expected to take 4-5 years, the electricity bill is expected to decrease to €57 on a two-month basis.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Does not apply to businesses	Applies to all citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

Social partners were not involved or invited to participate to the consultation process of the designing of the scheme. However, the pressure exercised by the society including political parties, trade unions, business associations and the organizations of people experiencing poverty and social exclusion forced the government to take measures, including the current scheme, and contrary to earlier announcements of the Ministry of Finance invoking public finances.

Views and reactions

The scheme is one of the most welcomed measures of the general supportive package of measures announced by the government. Some concerns were nevertheless expressed in relation to the power of the photovoltaic system of the scheme as well as the available budget of the scheme, as a high response - in terms of application - is expected from households.

Sources

• 09 November 2023: Ιανουάριο οι αιτήσεις για το «Φωτοβολταϊκά για όλους» - 6.000 αιτήσεις αρχικά (politis.com.cy)