Bulgaria Launches Home Solar Rebate Scheme

Bulgaria's Ministry of Energy has announced the launch of a BGN 240 million (US$134 million) rebate scheme open to applications from households installing solar water heating systems and rooftop photovoltaic arrays, which may also be paired with battery storage systems.

Bulgaria's Energy Ministry has launched a solar rebate scheme of up to BGN 240 million to help households reduce their carbon footprint and lower household electricity bills.

Homeowners can now apply for funding for solar hot water systems and rooftop photovoltaic systems of up to 10 kWp, which may also be paired with battery storage systems, the ministry said on Tuesday. The deadline for applications is November 10.

After receiving final approval from the League Commission, a total of BGN 140 million will be allocated through Bulgaria's National Recovery and Rehabilitation Programme, with the remaining funds coming from additional funding from the state and the private sector. Up to 80 million Bulgarian leva will be allocated in the first round of financing.

Under the long-awaited financing scheme, solar water heating systems are eligible for full funding up to a maximum of BGN 1,961, and photovoltaic systems up to 10 kwp are eligible for grants of up to 70% of the total project amount up to a maximum of BGN 15,000. Households applying for financial assistance should currently still be using an inefficient heat source such as a wood or coal-fired stove, boiler or fireplace, and must also be the applicant's permanent place of residence.

According to Solar Power Europe (SPE), Bulgaria has a cumulative installed PV capacity of 1.5 GW by the end of 2022.

"Bulgaria's solar targets remain low, with the country generating only 2.6% of its total electricity from PV by 2040," SPE said in its EU Solar Market Outlook 2022 to 2026, "However, Bulgaria has high irradiance, particularly in the southern part of the country, with significant solar potential, and these are not reflected in the current targets." In 2020, SPE forecasts that Bulgaria's installed PV capacity will reach 3.8 GW in 2024, exceeding the 2030 annual target it has set. Unsubsidised large-scale solar projects built on the basis of power purchase agreements (PPAs) are expected to underpin this growth momentum.

However, in October 2022, Bulgaria's electricity system operator revealed that it had accepted applications for the construction of new renewable energy projects with a total installed capacity of more than 24 GW, twice the country's installed capacity. The company said that the new projects would require a significant expansion of the grid and that it was discussing the necessary measures with potential investors.

Bulgaria's generating fleet is dominated by lignite and hard coal power stations with a capacity of 4.5 GW. non-hydro renewables amount to around 2.3 GW, hydro energy to around 3.2 GW, nuclear energy to around 2 GW and natural gas generation to around 600 MW.