Grants & Subsidies

In order to promote the uptake of RES, the Cyprus government adopted a framework for support measures which included the first Action Plan for the Promotion of Renewable Energy Sources, 2002-2010. Based on the experience gained during the first 5 years of operation of the Action Plan, a New Support Scheme was approved by the Council of Ministers and is now in operation.

The New Support Scheme (2009-2013) provides more generous incentives than the previous Scheme and sets more ambitious targets for the increase of renewable energy share in Cyprus.

Photovoltaic (PV) systems

For individuals and organisations that are not engaged in economic activity (e.g. private households), the scheme offers two plans:

1. a 55% contribution to all the eligible costs of the project (before VAT) and a feed-in-tariff of 22.5 cents/kWh for 15 years
2. no contribution to costs and a feed-in tariff of 38.3 cents/kWh, again for 15 years 

The above tariffs are fixed for the duration of the scheme, and the maximum power allowed is 20 kW, more than enough for all the energy needs of a typical Cypriot household. With current market prices, payback time of the project should not be more than a few years.

For those engaged in economic activities (e.g. companies), the scheme offers the following:

1. a 40% contribution to all the eligible costs of the project (before VAT) and a feed-in-tariff of 20.5 cents/kWh for 15 years. The VAT can be claimed back.
2. no contribution to costs and a feed-in tariff of 36 cents/kWh, for 20 years 

The above applies for systems up to 20 kW. For the 21 kW to 150 kW range, the tariff is 34 cents/kWh, with no contribution to initial costs. 

The producer remains connected to the EAC grid and uses electricity normally; the amount produced by the PV system is measured by special meters installed by EAC and sends regular payments to the producer. 

The documentation required to apply and register for this scheme will be taken care by Nova Energia staff. The approval time varies, but should not exceed a few months.

Solar Thermal

For individuals and organisations not engaged in economic activity:

1. For central solar thermal systems, there is a 45% contribution to all eligible costs. The maximum contribution is €26,000. Note here that the collectors have to have an area of at least 6 m2.
2. For all other solar thermal and/or cooling, the contribution is 55% to all eligible costs, up to a max of €120,000. 

For those engaging in economic activities, the scheme offers:

1. For central solar thermal systems, there is a contribution of 30% for all eligible costs under the de-minimis rule, 15, 25 or 30% if applying for the district subsidies, or 30% for agricultural subsidies. The maximum amount allowed is €20,000 per unit.
2.  For all other solar thermal and/or cooling, the contribution is 40% of all eligible costs under the de-minimis rule, 15, 25 or 30% if applying for the district subsidies, or 30% for agricultural subsidies. The maximum amount allowed is €85,000 per unit. 

The de-minimis rule restricts the maximum amount of contribution from all agencies to a company to no more than €200,000 for every three years. The district and agricultural subsidies are covered by Cypriot law. Information can be found on the government website dedicated to energy subsides (http://www.cie.org). Alternatively, you can contact us and we will be happy to assist you.