Installing and Using Renewable Energy in Cyprus

Information on the Renewable Energy Sources (RES) available to a homeowner in Cyprus: solar power for home heating and cooling, pool heating and wind power for electricty. Find out about the subsidies available to run a greener house with clean energy...

Cyprus is in the sunbelt with a daily average of 5.4 kilowatt-hours (KWh) production of energy per square metre of land. As a result, solar thermal (hot water) is used extensively in 90 percent of the housing market. 

Available Renewable Energy

The Cyprus government has put forward financial incentives, mostly for the domestic sector, which seem to be a favourable investment for Renewable Energy Sources (RES) such as:

  1. Solar energy for home heating and cooling and pool heating
  2. Production of electricity with wind or solar energy (photovoltaics)

Biomass - the biodegradable produce, waste and residues from agriculture, forestry industrial and municipal waste - also seems to be used, though by commercial companies only. There are Wind farms in Larnaka and Pafos. 

Cost effectiveness is the key to using RES in the domestic sector. Including the financial incentives provided government subsidies the pay back period following the costs of installation of RES could be:

  • three to five years for the solar system for heating and cooling
  • two to three years for the solar pool heating
  • seven to nine years for the Photovoltaics

Cypriot Subsidies 

Cyprus is under pressure from the European Union (EU) reduce its carbon dioxide (CO2) emissions reduction from power generation plants. They recognise that renewable energy sources (RES) technologies are vital in achieving this goal.

The Cyprus Government has launched a number of financial measures in the form of governmental grants and/or subsidies. These RES Grant Schemes are issued by the Ministry of Energy, Commerce, Industry and Tourism. The main RES technologies are:

1.      Solar energy

2.      Wind energy

3.      Biomass

Applying for a Subsidy

Those wishing to install photovoltaic panels can get advice from the company they have chosen to install the system. The company will apply for the government subsidy on their behalf.

Subsidies are only available to residents of Cyprus (proof of residency is required).

All applications, except the solar heating of pools with plastic solar panels, go through the town planning department – subsidy application approval can take several months.

  • A homeowner can apply for a subsidy for the hot water solar thermosiphon system
  • Expert assistance is essential when applying for other subsidies because of the cumbersome technoeconomic and energy study that needs to accompany the application
  • Approval by the EAC is needed before an application for photovoltaics can be submitted