Energy upgrades bottlenecked

Major problems have emerged in the market by a bottleneck in the subsidized property energy upgrade programs.

With the older programs of the “Exikonomo” type not yet completed due to bureaucratic and other difficulties, but with new programs also being added, the market is struggling to cope, with interested parties in constant search of workers for the actual implementation of projects, as well as for the liquidity needed to cover their own participation in the scheme.

With the financial stakes being very high – at least 3 billion euros in subsidies are available, resulting in the total amount of projects planned to be at least double – the challenge is to find solutions and implement the projects in order to achieve the main goal of saving energy and reducing costs for households.

The confluence of factors has created a series of problems: First, the country’s technical manpower is having trouble meeting ever-increasing demand. Second, the steep increase in interest has driven up prices, especially in the service sector. The cost of installing a solar water heater or installing photovoltaics is constantly rising, as the installer and not the customer has the upper hand right now.

Third, the constant increases in the price of materials are hampering the implementation of the projects, as the budgets calculated three years ago must now cover current prices.

Fourthly, those involved speak of significant delays in the payment to sector professionals, so that, especially in small and medium-sized enterprises, suffocating conditions are created in terms of liquidity, with the increase in the cost of borrowing only exacerbating the problem further.

The funding problem is already starting to sting, particularly in the rooftop solar program. The specific project provides for the mandatory installation of a battery, which significantly increases the investment cost. However, those interested are being told by the professionals they contact for the project to cover the entire cost, amounting to several thousand euros, and then wait for the subsidy to be disbursed.