The Bulgarian Ministry of Energy recently released a 240 million Bulgarian lev ($134 million) tax rebate plan for home users who plan to install solar water heating systems and rooftop photovoltaic systems, which can be installed in conjunction with battery energy storage systems . The scheme could help households in the country reduce their carbon footprint and lower their electricity bills.

Households can now claim rebates for installed solar water heating systems and rooftop photovoltaic systems with a capacity of up to 10kW, which can be accompanied by battery storage, the department said. The deadline to apply for a tax refund is November 10.

A total of BGN 140 million will be allocated from Bulgaria's National Recovery and Recovery Plan, following final approval from the European Commission, with the remainder coming from additional state and private sector funding. In the first round of financing, the Bulgarian Ministry of Energy will allocate up to BGN 80 million.

According to the long-awaited financing plan, solar water heating systems installed by household users can receive full financing, but up to a maximum of 1961 levs; photovoltaic systems with an installed capacity of less than 10kW will receive up to 70% of the financing, with a maximum amount of 15,000 levs lev. To qualify for funding, applicant households must be permanently resident and use inefficient heat sources, such as wood or coal-burning stoves or fireplaces.

According to data released by the European Photovoltaic Society (SPE), by the end of 2022, the cumulative installed capacity of photovoltaic systems in Bulgaria will reach 1.5GW.

The European Photovoltaic Association (SPE) said in its EU Photovoltaic Market Outlook Report 2022-2026: "Bulgaria's installed photovoltaic system target remains low, as the share of photovoltaic power generation in 2040 will only account for 2.6% of its overall electricity generation. However, Bulgaria benefits from high solar irradiance rates (especially in the south of the country) and has significant photovoltaic potential, which is not reflected in the currently set targets for the country.”

In 2020, the European Photovoltaic Society (SPE) predicted that Bulgaria would install 3.8GW of PV systems by 2024, thus surpassing its 2030 target. This momentum is expected to be mainly supported by subsidy-free large-scale PV projects built under power purchase agreements (PPAs).

However, a major Bulgarian power system operator revealed in October 2022 that it had accepted applications to install new renewable energy projects totaling more than 24GW. The company said installing the new project would require a significant expansion of the grid and was discussing the necessary actions with potential investors.