New Legislation Increases Solar Feed-In Tariff in Cyprus
The Cyprus parliament has passed new legislation allowing solar panel owners to sell excess energy back to the Electricity Authority of Cyprus (EAC). This move, part of the government’s push for solar energy in Cyprus, provides a guaranteed minimum price to promote renewable energy adoption and reduce the island’s reliance on fossil fuels.
This decision is a major win for renewable energy supporters and household solar owners, providing a reliable source of income. The new law introduces a feed-in tariff—a guaranteed electricity price per kWh—of 10.5 cents for solar energy fed into the grid.
This rate is set to remain in effect until the end of 2025, offering stability for producers. A feed-in tariff is a policy tool that incentivizes renewable energy by offering guaranteed payments for the electricity generated and supplied to the grid.
The new EAC tariff is a significant increase from the previous rate of 6.5 cents per kWh, which expired in 2021. This higher rate is expected to encourage more individuals and businesses to invest in solar panels, as it provides a more attractive return on investment.
The new tariff will also create a more stable and predictable market for renewable energy in Cyprus, making it an appealing option for those looking to reduce their carbon footprint. For additional insights on the challenges faced by solar power in Cyprus, check out this resource.
Legislative Process Behind the New Solar Panel Law
The new legislation’s approval was a collaborative effort among various political parties, including the Democratic Rally (Disy), Akel, Diko, the Democratic Alignment, and the Ecologists. The proposal for the new feed-in tariff originated with the Cyprus Energy Regulatory Authority (Cera).
The proposal was then supported by the government and submitted to the House of Representatives for consideration. The legislation passed with 40 votes in favor and only one against, demonstrating broad cross-party support for the measure.
Akel MP Costas Costa highlighted that the new law will benefit thousands of solar panel owners in Cyprus. He explained that the legislation provides a guaranteed minimum price for the electricity produced by solar panels, ensuring owners receive fair compensation for their contribution to the grid.
Costa emphasized that this measure was long overdue, as solar panel owners had been seeking a more favorable feed-in tariff for several years.
How New Legislation Supports Cyprus’s Renewable Energy Goals
This new feed-in tariff is a cornerstone of the Cyprus government’s strategy to increase the share of solar energy in the national energy mix. The island nation has abundant sunshine, making solar power an ideal renewable energy source. For a comprehensive overview of Cyprus’s solar energy landscape, visit this report.
By guaranteeing a price for electricity from solar panels, the government aims to encourage more individuals and businesses to invest in renewable energy infrastructure. This policy is expected to lead to a significant increase in solar panel installations, helping reduce greenhouse gas emissions and the country’s reliance on fossil fuels.
Beyond the environmental benefits, the new feed-in tariff is also expected to have positive economic effects. By creating a stable market for renewable energy, the policy will attract investment in the solar sector, leading to job creation and economic growth.
The legislation is a key step toward achieving Cyprus’s energy goals. The new EAC tariff for households and businesses will remain in effect until December 31, 2025, providing solar panel owners with a reliable income for the electricity they generate.
This measure is expected to encourage further investment in renewable energy, helping Cyprus move closer to its goal of becoming a more sustainable and environmentally friendly nation. With the new legislation in place, Cyprus is better positioned to achieve its energy targets and promote a greener future.
