Background information

The scheme aims to provide incentives to encourage the use of RES in residential buildings, contribute to the implementation of national energy saving targets in existing buildings and address energy poverty. Additionally, it promotes the actions included in the National Mountain Community Development Strategy. The main objective of the scheme is to achieve, in conjunction with another scheme that provides for the replacement of solar hot water systems in dwellings, the reduction in the consumption of primary energy by at least 30% of the supported dwellings. The scheme is included in the National Recovery and Resilience Plan 2021-2026 and will be co-funded by the NextGenerationEU instrument – the EU Recovery and Resilience Mechanism – and national funds.

Content of measure

Beneficiaries of the scheme are natural persons owning a residential building. Additionally, residential buildings should not be rented by legal persons and not to be used for economic activities for at least 5 years from the date of the sponsorship. Additionally, sponsorships are only provided through the traders that participate in the Scheme, which submit invoices to the coordinating agency.

The eligible cost categories are:

1. purchase of photovoltaic systems;
2. cost for the installation of the system;
3. expenses related with the distribution system operator;
4. remuneration for studies required by the operator; and
5. VAT expenses.

The investment categories and the amount of sponsorship are:

• A1. Photovoltaic – General category: €375 per installed Kw, maximum sponsorship €1.500
• A2. Photovoltaic – Vulnerable households: €1.250 per installed Kw, maximum sponsorship €6.250
• A3. Photovoltaic for all: €250 per installed Kw, maximum sponsorship €1.000 (see also case CY-2024-1/3410)
• B1: Roof thermal insulation – general category: 50% of the eligible cost, maximum sponsorship €2.500 or €25,00 per m2 (which is lower)
• B2: Roof thermal insulation – vulnerable households: 75% of the eligible cost, maximum sponsorship €3.750 or €37,00 per m2 (which is lower)

For A1 and B1, the sponsorship is increased by 50% for the mountainous areas. Additionally, a lamp-sum bonus of €750 is provided for households that invest for both installation of photovoltaic systems and roof thermal insulation.

Use of measure

The total available budget of the Scheme is €90 million, of which €14.5 million comes from EU Recovery and Resilience Mechanism and €75.5 million from the national RES and Energy Conservation Fund. Category 3 ‘Photovoltaic for all’ as well as the VAT expenses in all categories will be funded exclusively by the RES and Energy Conservation Fund.

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 National Recovery and Resilience Facility

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 in the designing phase of the scheme and no provision is found for either the implementation and/or the monitoring of the scheme by social partners. The defined implementation agency is the national Coordinating Commission of the RES and Conversation Fund.

Views and reactions

The Scheme emerged after the reactions of the society upon the first announcement of the Ministry of Energy, Commerce and Industry for the scheme ‘photovoltaic for all’. It was one of the most welcomed measures ever announced but it was seen as restricted in regards to the number of beneficiaries, the overall available budget and the provisions for the power of the photovoltaic systems.

Sources

• 25 January 2024: Σχέδιο χορηγιών για ενθάρρυνση της χρήσης ανανεώσιμων πηγών (resecfund.org.cy)
• 01 October 2024: ΣΧΕΔΙΟ ΧΟΡΗΓΙΩΝ ΓΙΑ ΕΝΘΑΡΡΥΝΣΗ ΤΗΣ ΧΡΗΣΗΣ ΑΝΑΝΕΩΣΙΜΩΝ ΠΗΓΩΝ ΕΝΕΡΓΕΙΑΣ ΚΑΙ ΕΞΟΙΚΟΝΟΜΗΣΗΣ ΕΝΕΡΓΕΙΑΣ ΣΕ ΚΑΤΟΙΚΙΕΣ 2024-2025 (resecfund.org.cy)