The Bulgarian Ministry of Energy has confirmed it will not proceed with a second round of funding for its rooftop solar and solar water heater subsidy program aimed at households. The decision effectively halts one of the few initiatives under Bulgaria’s national recovery plan that directly targeted individuals rather than businesses or local governments.
Originally designed to assist up to 10,000 households with a €120 million budget, the program approved only 1,500 applications in its first phase, totaling €20 million. As a result, the remaining €100 million allocated for a second round will go unused. Ironically, the program initially faced concerns over excessive demand and insufficient resources. Instead, complex application procedures discouraged broad public participation.
Energy expert Balin Balinov from Greenpeace criticized the decision, arguing it disregarded considerable public interest—especially from low-income households. He noted that the second phase was intended to offer full grant coverage for energy-poor families, effectively making installations free. “Once again, the government failed to support vulnerable groups and didn’t reform the broader system of energy assistance,” he said.
The program had offered up to 70% reimbursement for rooftop solar systems with batteries and 100% for solar water heaters. However, applicants had to cover the full cost up front and were reimbursed only if their application was approved—an arrangement that discouraged low-income families. Meanwhile, more affluent households were reportedly deterred by excessive red tape.
Balinov also expressed concern about the feasibility of implementing even the approved projects. With contractor shortages and a backlog of existing solar installations, the target of completing 2,000 new systems within the program’s deadline appears increasingly unrealistic.
Adding to the challenge is Bulgaria’s lack of a net metering system, which prevents consumers from offsetting electricity costs by feeding excess solar power back into the grid—a key incentive for small-scale solar investments. The Ministry acknowledged this as a barrier and stated that a draft Renewable Energy Act currently under parliamentary review aims to address it.
Proposed legal reforms include simplifying the permitting process for solar systems under 20 kW by setting a one-month approval deadline, after which permits will be automatically granted. For systems up to 10.8 kW, users would only need to notify the network operator, eliminating the need for formal approval.
Despite these upcoming reforms, the cancellation of the second funding phase marks a significant missed opportunity for Bulgaria’s energy transition—particularly for households most in need.
