Filenews 4 May 2023 - by Angelos Nicolaou
An action plan aimed at the energy upgrade of existing energy-intensive homes owned and used by natural persons, comes into effect today and ends on 21/12/2023. Eligible actions covered by the project include consulting services, thermal insulation of the house envelope, replacement of frames, installation of shading systems as well as the installation and/or replacement of technical systems (such as solar, photovoltaic, air conditioners, storage batteries, automation, etc.).
For the first time in the "Save – Upgrade in Homes" subsidy scheme, displaced persons permanently residing in residences located in refugee settlements are included in the beneficiaries of increased sponsorship, following yesterday's decision of the Council of Ministers on the basis of a proposal submitted by Energy Minister George Papanastasiou. At the same time, the Cabinet approved a separate plan concerning residences located in areas of the British Bases for which a separate budget was secured, since the British Bases are not included in EU funds. The opening date for applications is set today for both projects.
The aim of the Plan is to convert older energy-intensive buildings into buildings of high energy efficiency, which will contribute to a cleaner environment.
The project, which has a total budget of €70 million, is included in the "THALEA" Programme 2021-2027 and is co-funded by the European Regional Development Fund (ERDF) of the EU and the Republic of Cyprus. During the first call for the Scheme, which was implemented in 2021, €35 million was allocated, while the remaining €35 million. will be made available under the second call announced in November 2022.
The main purpose of the plan is the energy upgrade of existing homes, so that they achieve energy savings of at least 60%. The total annual savings, which will be achieved from the total investments that will be subsidized, are estimated to be in the order of 192,000 Mwh.
Beneficiaries of the scheme are all natural persons who are owners or tenants of the houses. In addition to displaced persons permanently residing in homes located in refugee settlements, the plan provides increased incentives to vulnerable consumers, as well as to owners/tenants of houses located in mountainous areas. The maximum grant amount for each residence can reach up to €32,000, depending on the type of investment chosen by each beneficiary. The "Save - Upgrade in Houses located in areas of the British Bases" has a total budget of €500,000, which is funded entirely by the Republic of Cyprus and is implemented under the same terms as the co-funded scheme.
The plan is implemented using a simplified method and sets a specific grant amount for each eligible expenditure, calculated to represent approximately 60% of the actual investment costs. For applicants who fall under vulnerable consumers, as well as for homes located in mountainous areas, the scheme grants an increased amount of sponsorship compared to other applicants. Specifically, for beneficiaries of increased sponsorship, the grant amount determined by the plan has been calculated to represent approximately 80% of the actual cost of investments.
With the increased incentives for homes located in refugee settlements and are permanent residences of displaced persons, they are given the opportunity to improve their living conditions and reduce their energy costs.
Until now, potential beneficiaries of the project could invest in projects/actions in areas controlled by the Republic of Cyprus, excluding the British Bases areas, since according to Protocol No.3 of the Accession Treaty, it is not possible for projects or actions implemented within these areas to be financed by European Structural and Investment Funds (ESIF). For the purposes of equal treatment of the citizens of the Republic, during the period of implementation of previous calls for tenders of the plan, the Ministry of Energy, Commerce and Industry, secured the approval of the MoS and implemented its own plans for the houses located in areas within the British Bases, which were financed exclusively by national resources.
In order to satisfy the fair request of interested parties, the Ministry has prepared an implementation guide for the scheme "Save - Upgrade in Homes located in areas of the British Bases".
What sponsorship is foreseen for each eligible action?
The project shall be implemented through a simplified cost procedure, setting out the amount of grant granted for each eligible action. Specifically, for thermal insulation of horizontal structural elements (ceilings, floors on a flatbed, floors on a cantilever floor, roofs, roofs) the grant to non-vulnerable is €30 per m2, while for homes in vulnerable/mountainous areas/refugees in refugee settlements the grant is €40 per m. For thermal insulation of walls and elements of the bearing structure (columns, beams and walls) the grant for non-vulnerable homes is €40 per m2 and for the other categories €55 per m2. The grant for the replacement of frames included in the housing envelope for non-vulnerable homes amounts to €200 per m2 and for the rest €265 per m2. The grant for the installation of external removable shading amounts to €135 per m2 and €180 per m2 for the rest.
For the purchase and installation or replacement of a solar water heater for hot water production, the grant for the non-vulnerable is €885 per system per house, while for the other categories €1180 per system. Furthermore, for the installation of autonomous air conditioners with a capacity of up to 4kW, the grant for the non-vulnerable is €290 per system and for the other categories €390 per system. Also, for air conditioners over 4kW the grant amounts to €525 per system for the non-vulnerable and €700 for the other categories.
For the purchase and installation of an energy-efficient aerothermal, geothermal or hydrothermal pump for non-vulnerable, the grant reaches €3,225 per system and for the remaining categories €4,300 for each system. For the installation of a photovoltaic system Net Billing, with a capacity of up to 10kW, the grant for the non-vulnerable is €450/kW and for the other categories €1,000/kW. Sponsorship is also given for batteries for storage of energy produced by the photovoltaic system with a capacity of up to 4kWh, €720/kWh for non-vulnerable and €960/kWh for the other categories. For the replacement of a high energy efficiency boiler for space heating, the grant is €1,270 for the non-vulnerable and €1,690 for the other categories. Finally, for service expenses, the grant is €3.75/m2 of useful house area for non-vulnerable and €5/m2 of useful house area for all other categories.
€35 million for vulnerable households
Significant funds amounting to €35 million covering 60-80% of the total cost for house renovations are granted following yesterday's decision of the Council of Ministers. Speaking to "F", Energy Minister George Papanastasiou said that the government's decision includes displaced persons living in refugee settlements among the beneficiaries of increased sponsorship of the co-funded "Save – Upgrade in Homes" Scheme. He added that the decision prioritizes the fair support of our refugees, on the basis of President Christodoulides' declared governance program. Vulnerable consumers and residents of mountainous areas are also entitled to increased sponsorship.
The Government, he added, is sensitive to the problems faced by the refugee world, which is why, in addition to the big plan "KtiZO" announced last month, we are now coming to give additional assistance to our refugees, providing them with increased incentives – to 80% instead of 60% – to upgrade their homes. "With energy savings that should be at least 60%, they can, if they take advantage of the Plan, improve their living conditions and reduce the cost of energy in their home," he added.
At the same time, he said, for the purposes of equal treatment of the citizens of the Republic, we have prepared a corresponding plan for residences located in areas of the British Bases, which is entirely funded by the Republic of Cyprus.
