AKEL Secretary-General Stefanos Stefanou has submitted a series of proposals aimed at improving the government's 2026 Home Energy Upgrade Grant Scheme, arguing that assistance should be directed first to households most affected by energy poverty.
In a letter to Energy Minister Michalis Damianos, Stefanou welcomed the allocation of €20 million for upgrading existing homes but said the current design of the scheme does not adequately ensure support reaches households facing the greatest financial hardship and highest energy costs.
Focus on energy poverty
Stefanou argued that energy-efficiency upgrades should be used as a tool to combat energy poverty and reduce electricity bills, rather than primarily benefiting homeowners already able to finance such projects themselves.
Among his proposals is the creation of a mechanism allowing for advance payment of approved grants or direct payment of subsidies to approved contractors.
He said the upfront cost of renovation works remains a major obstacle for low- and middle-income households, many of which cannot secure the liquidity needed to begin projects even after receiving grant approval.
Separate scheme for vulnerable households
The AKEL leader also proposed the creation of a dedicated energy-upgrade scheme for households experiencing energy poverty.
Under the proposal, the programme would have a separate budget, simplified procedures and eligibility criteria based on social and economic circumstances.
It could cover up to 100% of eligible costs, including energy audits, energy performance certificates and expert services, without requiring any financial contribution from beneficiaries.
Scoring system proposed
Stefanou further suggested replacing the current first-come, first-served application process with a scoring system based on social and energy-related criteria.
Priority would be given to households experiencing energy poverty, low-income families and those with higher energy needs who are unable to cover the cost of required improvements.
Application timing could remain as a secondary factor where applicants receive the same score.
Additional measures
Other proposals include:
- A special category for gradual energy upgrades.
- Inclusion of newer homes in the scheme.
- Combined support for energy-efficiency works, photovoltaic systems and energy storage.
- Promotion of energy communities and collective solutions for tenants and people without suitable housing for renewable energy installations.
Measuring success
Stefanou said the success of the scheme should not be judged solely by its budget or the number of homes upgraded.
Instead, he argued, it should be assessed by how effectively it reaches those most in need, lowers energy costs and improves quality of life.
Source: CNA
