Solar Panel Installation Costs and Subsidies in Romania

The cost of a residential photovoltaic system in Romania has fallen substantially since 2020. Panel prices dropped by roughly 40% between 2021 and 2024 as Chinese manufacturing capacity expanded and European inventories built up. For a homeowner weighing the numbers today, the calculation looks different from the one that applied even two years ago.

This article covers the main cost components, the Casa Verde Fotovoltaice subsidy, other available programmes, and the factors that determine how long before a system covers its own cost.

What a system actually costs in 2024–2025

Prices vary by region, by installer, and by the specific components chosen. The figures below are compiled from publicly available installer quotes submitted to the AFM Casa Verde database and from regional industry association data.

Panels (modules)

As of late 2024, monocrystalline PERC panels from tier-1 manufacturers (JA Solar, LONGi, Jinko, REC, Trina) are priced at 0.18–0.26 EUR/Wp when purchased by installers in standard pallet quantities. For a 6 kWp system using 400 Wp panels, the module cost is approximately 1,100–1,560 EUR. End-customer pricing is typically 2–3× the installer procurement cost once distribution margin is included.

Inverter

A string inverter for a 5–6 kWp system from reputable brands (SolarEdge, Fronius, Huawei, SMA) costs 800–1,400 EUR retail. Microinverter systems (Enphase, APsystems) run higher — 1,400–2,200 EUR for the same capacity — but are frequently specified where partial shading is a concern.

Mounting, cabling, and protection equipment

Aluminium rail mounting, cables, DC and AC protection devices (SPDs, MCBs, surge arresters), and consumables typically add 400–700 EUR for a standard residential system. Metal roofs may require additional sealing materials.

Installation labour

Labour costs vary significantly across regions. In Bucharest and the surrounding area, installation labour for a 5–6 kWp system runs 600–1,000 EUR. In Transylvania and Moldavia, prices are somewhat lower — 400–700 EUR — due to lower regional wage levels and competition among installers.

Grid connection and metering

The DNO connection application and smart meter installation is the homeowner's largest non-equipment cost after the system itself. The regulatory fee for the technical feasibility study (studiu de soluție) is set by ANRE and was 250 RON (approx. 50 EUR) in 2024. Actual costs including internal DNO work and the smart meter can reach 1,500–3,000 RON depending on the distributor and the complexity of the local connection.

Total installed cost: summary

For a 5 kWp system installed in 2024–2025, the total installed cost before subsidies typically falls between 5,500 and 8,000 EUR. This range accounts for regional variation, component selection, and roof complexity. Systems with battery storage add 2,500–5,000 EUR for a 5–10 kWh LFP pack with inverter integration.

Note on VAT

Since 1 January 2023, solar panel supply and installation services in Romania are subject to a reduced VAT rate of 5% (down from the standard 19%). This applies to residential systems up to 200 kW. The reduced rate applies to the full system cost including mounting and installation labour, per HG 2.139/2004 and subsequent amendments.

Casa Verde Fotovoltaice: the main subsidy programme

The Casa Verde Fotovoltaice programme is administered by the Administration of the Environmental Fund (AFM) under the Ministry of Environment. It offers non-refundable grants to natural persons — homeowners — for photovoltaic systems installed on their primary or secondary residence.

Grant amount

The programme provides a maximum grant of 20,000 RON (approximately 4,000 EUR at current exchange rates) per household. This covers systems of 3–10 kWp. The grant is disbursed after installation is complete and inspected, not upfront — the homeowner must finance the full cost initially and receives reimbursement once all documentation is approved.

Eligibility conditions

The property must be in the applicant's name and registered as their domicile or secondary residence.
The applicant must not have received a Casa Verde grant for the same property in a previous edition.
The installed system must have a minimum capacity of 3 kWp.
All components must be new and covered by manufacturer warranties of at least 10 years for panels and 5 years for inverters.
Installation must be carried out by an AFM-registered installer.

Application timeline and cohorts

Applications are submitted online through the AFM portal and processed in cohorts. The programme has been oversubscribed in every edition since its relaunch in 2022. In the 2023 cohort, applications filled the available budget within days of opening. The most recent cohort accepted applications through February 2025; the next cohort is expected to open in Q3 2025, subject to budget allocation.

Reimbursement process

After installation, the homeowner submits a file including the invoice, installation protocol, AFM-required technical datasheet for each component, proof of smart meter installation, and the prosumer agreement with the local DNO. AFM typically processes reimbursement within 90–180 days of a complete file being submitted. Incomplete files — most commonly missing the DNO prosumer agreement — are the main cause of delayed disbursement.

Other subsidy and financing routes

PNRR investments (Component C6)

Through the National Recovery and Resilience Plan (PNRR), Romania committed to expanding renewables capacity as part of Component C6 — Energy. Several competitive financing schemes for municipalities and SMEs have been released under this component, though the residential track has been narrower than the Casa Verde programme. Updates are published on the Ministry of European Funds website.

Bank financing for prosumers

Several Romanian commercial banks offer dedicated prosumer loans following the AFM programme expansion. BRD and BCR have published loan products with fixed interest rates of 8–10% over 10 years. For homeowners who cannot wait for the next AFM cohort, bank financing combined with the reduced 5% VAT rate can still produce acceptable payback periods in high-irradiance zones.

Local authority programmes

A number of county councils and municipalities have launched supplementary grants, particularly in Ilfov, Cluj, and Timiș counties. These vary in amount and eligibility — the Ilfov County Council offered grants of 5,000 RON per household in 2023 — and are announced through official county portals rather than a central registry.

Payback period calculations

The payback period depends on three variables: total installed cost after subsidies, annual electricity yield, and the value assigned to that electricity. The value calculation changed in 2023 with the introduction of net billing (replacing net metering), which means exported electricity is credited at 60–70% of the purchase tariff rather than at full tariff.

A worked example for Bucharest in 2024–2025:

System size: 5 kWp
Total installed cost: 6,500 EUR (approx. 32,500 RON)
Casa Verde grant: 20,000 RON ≈ 4,000 EUR
Net cost after grant: 12,500 RON ≈ 2,500 EUR
Annual yield: 6,500 kWh/year
Self-consumption (no battery): 35% = 2,275 kWh at 0.95 RON/kWh = 2,161 RON
Export (65%): 4,225 kWh at 0.60 RON/kWh = 2,535 RON
Total annual value: 4,696 RON
Simple payback: 12,500 ÷ 4,696 ≈ 2.7 years

This is an unusually short payback driven by the size of the Casa Verde grant relative to the system cost. Without the grant, using the same assumptions, simple payback extends to approximately 7 years.

Cost figures are indicative and drawn from AFM published data, ANRE tariff orders, and regional installer market surveys. Electricity tariff assumptions reflect Q1 2025 rates for residential customers on standard regulated tariffs. Actual costs and tariffs vary. This article does not constitute financial advice.