The Cypriot government has approved a rebate scheme aiming to increase the use of solar panels in Cyprus and reduce home electricity bills.

The scheme, first presented by Cyprus’ minister of energy, commerce and industry in November, has a budget of €30 million ($32.4 million) and is expected to help around 6,000 homes.

It features three for photovoltaics.

The general photovoltaic category offers a grant of €375 per kW and a maximum grant of €1,500 (4kW), with a 50% increase for mountainous areas. The second photovoltaic category, aimed at vulnerable households, offers a grant of €1,250 per kW and a maximum grant of €6,250 (5kW).

A third photovoltaic category, entitled ‘photovoltaics for all’, offers the possibility of installing a photovoltaic system for citizens who do not have the initial capital. It will give a grant of €250 per kW and a maximum grant amount of €1,000 (4kW), as well as an additional investment repayment of €1,000 per kW with a maximum repayment amount of €4,000.

The scheme is also offering a one-off bonus of €750 if both PV and roof insulation are implemented in the same house.

Applicants will be pre-approved before installation, with applications processed electronically to reduce bureaucracy and speed up the payment of the grant. Repayments start with bi-monthly charges of €150 through the household's electricity bill.

Installations must be carried out by installers registered in a list of participating traders, providing applicants with a seven-year commercial guarantee. Installers of photovoltaics and roof insulation are expected to begin registration in the coming days.

The scheme is expected to open for applications by the end of February.

Statistics from the International Renewable Energy Agency (IRENA) show that Cyprus had 464 MW of cumulative solar installations at the end of 2022.