FINANCE

Business and energy subsidies in Cyprus

Business and energy subsidies in Cyprus

The Cypriot government will this year make 158 million euros available through grant schemes in favor of digital and energy upgrades, Minister of Energy, Trade and Industry Natasa Pilides announced during an online workshop on Wednesday.

She stressed that the ministry is continuing its ambitious program to support Cypriot households and businesses for a second year: “In 2021, we announced schemes worth €130 million to restart the economy. We are continuing in 2022 with calls for new schemes with a total budget of €158 million.” She explained that €100 million will be allocated for businesses, €49 million for household energy efficiency upgrades and €9 million for energy upgrades for local public offices.

Applications for the first grant scheme can be made from February 24 and concern the creation and modernization of agricultural processing and marketing units, worth €25 million, followed in March by the €40 million plan for the energy upgrades for businesses.

Also, there will be a scheme in May for digital business upgrades (€10-20 million), support for large manufacturing enterprises in July (€7 million), the provision of advisory services to small and medium-sized enterprises in September (€5 million) and strengthening the circular economy by end-2022 (€13.3 million).

Similarly, the projects promoted for the energy efficiency upgrade of homes include replacement of energy-intensive household appliances in vulnerable households, which has been running since December 2021, with over 3,150 applications submitted so far (€5 million). Furthermore, subsidies for the installation of photovoltaic panels and roof insulation will begin in April-May (€7.3 million) and include the virtual net metering.

Moreover, subsidies for the installation or replacement of solar water heater can be applied for from March-April (€450,000), subsidies for photovoltaic system installations for charging electric vehicles in March-April (€1.5 million), residential energy upgrades during the second half of 2022 (€35 million) and energy upgrades for local and public authorities in March (€9 million).

The provisions of a grant scheme for the creation, modernization and digital upgrade of SMEs in the agricultural products processing and marketing sector were also presented. Its objectives are to modernize agricultural product processing, create jobs and utilize local primary sector production.