Bulgaria suspends ill-designed solar energy support program

The Ministry of Energy of Bulgaria doesn’t intend to publish the second call for subsidies for households for solar panels with batteries and solar collectors. The program is partly covered by the European Union’s Recovery and Resilience Facility, so now the country risks losing the funds.

The Ministry of Energy of Bulgaria told Kapital that it does not plan to launch a second procedure to support households in purchasing and installing rooftop photovoltaic panels and solar water heaters. The measure was one of the few for citizens in the National Recovery and Resilience Plan (NRRP) rather than businesses or municipalities.

Through the first call, 1,500 households were selected for grants, worth some EUR 20.5 million in total. There is EUR 123 million for the entire scheme, called Support for Renewable Energy for Households. The solar power panel segment includes an option to install batteries as well.

Procedure too complicated

Initially there were fears that there would be more applications than the sum can cover, the article adds. But the procedure turned out to be so complicated that few people actually submitted documentation, the news outlet wrote. So now Bulgaria is about to lose the funds, after the European Commission already blocked the second NRRP tranche late last year.

The Ministry of Energy said it expects all the remaining contracts from the first round to be signed by the end of the month.

The program covers up to 70% of the costs for PV panels and 100% for solar collectors

According to Balin Balinov from Greenpeace, the government is once again demonstrating lack of commitment when it comes to energy poor households.

The program covers up to 70% of the costs for PV panels and 100% for solar collectors. But beneficiaries must buy them on their own and get reimbursed afterward. Notably, people who can afford such devices don’t want to deal with the bureaucracy, the report adds.

Installers struggling with backlogs amid tight deadlines

Moreover, Balinov said, there are hardly any firms available at the moment for installing solar panels, and the deadlines are short. Another issue is the lack of a net metering mechanism for rooftop and balcony photovoltaics. In such a setting, the electricity that beneficiaries generate would be subtracted from their bills.

The draft Law on Energy from Renewable Sources, currently in procedure in the National Assembly of Bulgaria includes the introduction of virtual net metering for prosumers and renewable energy communities. The deadline for approving an application for the installation of a solar power system of up to 20 kW would be just one month, the ministry pointed out.

Moreover, to get a grid connection, prosumers with up to 10.8 kW would only be required to notify the operator.