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Cyprus Approves €1 Million Solar Water Heating Subsidy Scheme

Cyprus is rolling out a new €1 million subsidy program to help households install or replace solar water heating systems, as the government seeks to lower energy costs and expand the use of renewable energy.

Grant Support Of Up To €900

Approved by the Council of Ministers on Wednesday, the Grant Scheme for Solar Hot Water Systems in Homes 2026 will provide subsidies ranging from €500 to €900, depending on the applicant’s category and the property’s location.

Energy, Commerce and Industry Minister Michalis Damianou said the scheme aims to encourage households to install or upgrade solar water heating systems, helping reduce energy bills while making greater use of Cyprus’ abundant solar resources.

Targeting Lower Costs And Higher Efficiency

The program will be administered by the Renewable Energy Sources and Energy Conservation Fund and will cover complete solar water heating systems that meet the required technical specifications.

To qualify, installations must be carried out by contractors included in the official registry, while all equipment must appear on the list of approved products. According to the Ministry of Energy, these requirements are intended to ensure the scheme is implemented correctly and to minimise the risk of rejected applications.

Who Qualifies For The Highest Support

The standard subsidy is set at €500. Households in mountain areas will be eligible for grants of up to €900, while vulnerable households will also qualify for the maximum level of support.

Applications Open Until December 2026

Applications will remain open until December 20, 2026, or until 2,000 applications have been submitted, whichever comes first. Damianou encouraged eligible households to review the scheme’s conditions and apply while funding remains available.

Cyprus Employment Rises 1.7% To 525,167 In Q2 2026

Cyprus employment increased 1.7% year over year to an estimated 525,167 people in the second quarter of 2026, according to the state statistical service, Cystat. Employees accounted for 472,254 of the total, while 52,913 were self-employed. The increase points to continued labor market growth across both wage employment and independent work.

Trade, Construction And Leisure Lead Employment Growth

Wholesale and retail trade, including motor vehicle and motorcycle repair, recorded some of the strongest employment gains, alongside construction and arts, entertainment and recreation.

Those sectors are closely linked to domestic economic activity, with trade reflecting consumer demand and construction reflecting investment. Employment growth in leisure-related industries also points to continued activity in consumer-facing services.

Hours Worked Rise Faster Than Employment

Labor input increased faster than headcount. Cystat estimated that employees and other workers put in 246.57 million hours during the second quarter, up 2.2% from a year earlier.

The increase suggests that businesses were not only employing more people but also recording higher total hours worked. Wholesale and retail trade, construction, and arts, entertainment and recreation again recorded the strongest gains.

Labor Market Expansion Remains Broad-Based

The combination of higher employment and hours worked points to continued expansion in Cyprus’ labor market during the second quarter. The pace remains moderate, but gains across several major sectors indicate that labor demand continued to support economic activity.

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