Filenews 15 January 2023 - by Adamos Adamou
The shift of more and more households to energy from renewable sources and investments to save energy is now clear. The reasons for each case may vary, but everything indicates that the energy upgrade and the resulting benefits, not only to households but also to the environment, seem to be gaining ground.
Therefore, interest in the various sponsorship schemes of the Ministry of Energy and even more so in those of the Fund for Renewable Energy Sources (RES) and Energy Saving (RES) is constantly increasing. In fact, as shown by data obtained by "F", the applications for these plans in 2022 recorded a three-digit increase, of the order of 100% and in fact doubled from the corresponding applications received by the Fund in 2021. The actions of the Ministry and the decision to significantly increase the amount of sponsorship for the various sponsorship plans, such as the installation of photovoltaics, roof thermal insulation and solar water heaters, also contributed to this.
Moreover, the situation as it developed after the Russian invasion of Ukraine, which pushed up energy prices even further, causing the wave of accuracy that continues to afflict households and businesses, also contributed to the increased interest. The energy crisis itself that has been caused, seems to some extent to accelerate the green transition that is being pursued at national and European level.
100% increase in '22
The truth of the matter emerges, as we mentioned from the data of the RES and ES Fund, as the total number of applications received last year for the aforementioned sponsorship schemes recorded an increase of 100% on an annual basis. The largest percentage increase, which reached 170%, was recorded by requests for the installation of photovoltaics by vulnerable households, which now shows the interest in photovoltaics by all households. Of course, the increase in sponsorship and incentives helped in this. Specifically:
- For category 3B concerning the installation of photovoltaics in homes where vulnerable consumers reside, the RES and ES Fund accepted 2,781 applications in 2022, compared to 1022 in 2021.
- For category 3A, which generally concerns the installation of photovoltaics in residences, there was an increase of 87% and 4,781 applications in 2022 compared to 2,558 in 2021. Applications for roof thermal insulation recorded an annual increase of 21% and amounted to 280 and applications for roof thermal insulation in combination with installation of photovoltaics increased by 54% as they amounted to 77 last year.
- For installation / replacement of a solar water heater, 1,800 applications were submitted last year compared to 1,000 in 2021, recording an increase of 80%.
- For the installation of a photovoltaic system for the purpose of charging electric vehicles, there were 20 applications from just 6 in 2021.
Applications for thermal insulation
Regarding the thermal insulation of the roof or a combination of thermal insulation and RES, the plans of the RES and ES Fund received an increased number of applications in 2022, however it seems that the interest is mostly focused on photovoltaics. The Ministry of Energy believes that thermal insulation, which aims to save energy, with benefits for the environment and everyone's pocket, is the first and most important step before the installation of photovoltaics. Related was the campaign of the Ministry of Energy that ran in the previous months with the aim of changing the culture of Cypriots.
In total, for the Fund's grant schemes for thermal insulation, photovoltaics and solar water heaters, 9,739 applications were submitted last year compared to 4,867 applications in 2021 with the total increase amounting to 100%.
It is worth noting that the application for payment of the sponsorship is made after the investment. This, according to the Ministry, means that the applications received by the Distribution System Operator (DSO), which is required to connect the photovoltaic systems, are much more for 2022 than the applications for payment of the grant received by the RES and EES Fund. Based on the information of the Ministry by the DSO (EAC), the applications for Net Metering photovoltaic connection now amount to 1000-1200 per month, so the actual increase in photovoltaic installations is significantly beyond the 87% calculated based on the number of applications for sponsorship and this additional increase is expected to be transferred in the near future to the applications for sponsorship.
It is recalled, in the meantime, that in addition to the aforementioned Grant Schemes, last year the RES and ES Fund announced, in the context of the compensatory measures taken by the Government to limit the consequences of the price increases in electricity, a Grant Scheme amounting to €5 million to replace energy-intensive electrical appliances with appliances of lower energy consumption. 5351 requests for pre-authorisation were received from vulnerable households.
Quadrupling of funds
As mentioned, the increased interest that existed last year in the plans of the RES and ES Fund was decisively contributed by the decisions of the Ministry of Energy. Specifically, in 2022, as we were told, there was a quadrupling of the available funds for the Grant Schemes for roof thermal insulation and photovoltaic installation.
Specifically, the budget of the respective Plan in 2021 amounted to €7 million. while for the years 2022-2023 the amount increased to €70 million. Based on the calculations of the Ministry of Environment and Energy, €70 million will be paid out which can indicatively satisfy the financial needs for sponsorship for photovoltaics in 20,000 households (category 3A) and in 10,000 vulnerable households (category 3B). A total of 30,000 beneficiaries plus applications for roof thermal insulation. Therefore, the response of the citizens is already causing satisfaction to the Ministry, as the plan creates the conditions for a further increase in the penetration of RES, for EK, for a reduction in the cost of electricity to households and to achieve climate/energy targets.
By the end of 2022, more than 31,000 photovoltaic net metering systems were installed in homes and their total capacity exceeds 141 MW. "If we take into account the huge interest and available funds (for 30,000 photovoltaics), residential photovoltaic systems will increase significantly." Of course, the EAC network needs an urgent upgrade, in order to be able to "fit" the huge interest of citizens, who wish to become self-producers.
The increased incentives and plans that continue to run
The increased budgets and the increased incentives of the Ministry of Energy for energy upgrade continue this year and while the energy crisis continues, it is estimated that interest in them will continue to be increased.
Next week, the Ministry of Energy's Plan for the complete and extensive energy upgrade of homes is announced, which grants grants up to 60% of the eligible costs. The total cost for the Scheme will amount to €35 million. The Guide is expected to be made public by the end of this week. The first announcement of the Plan that was announced in 2021 with an expenditure of €35 million had attracted the interest of more than 2,100 households. In the meantime, the Plan of the RES and ES Fund continues, which grants grants for individual investments in thermal insulation of the roof and installation of photovoltaics. In summary, the plans for 2022-2023 concern the following categories:
- CATEGORY 1: Thermal insulation of roofs of existing houses. A grant of 45% of the eligible costs of each application/residence is provided, with a maximum grant amount per application of €2,250. For residents of mountain communities the amounts are increased by 50%.
- CATEGORY 2: Thermal insulation of roofs of existing residences in combination with the installation of a photovoltaic system with the method of net metering (Net Metering or Virtual Net Metering). A grant of 55% of the eligible costs for the thermal insulation of the roof is provided, with a maximum grant amount of €2.750 and a financing of €450 per installed kW photovoltaic system, with a maximum sponsorship amount of €1.800. The maximum sponsorship amount per application may be €4,550. For residents of mountain communities the amounts are increased by 50%.
- CATEGORY 3: Installation of a photovoltaic system with the method of Net Metering or Virtual Net Metering in existing residences. The amount of the grant is €375 per installed kW photovoltaic system, with a maximum sponsorship amount of €1,500 (CATEGORY 3A). For residents of mountain communities the amounts are increased by 50%. The amount is increased to €1,000 per installed kW of photovoltaic for the homes of vulnerable consumers, with a maximum grant amount of €5,000 (CATEGORY 3B).
Also, this year, the budget for installing / replacing a solar water heater is estimated to increase to € 1 million from 950,000 in 2022 and 350,000 in previous years and the beneficiaries are expected to increase to 2,000.
All information about the Grant Schemes of the RES and ES Fund is available on the website: resecfund.org.cy
