June 6, 2024

Application Opens for Solar Subsidy Scheme in Kosovo

The Ministry of Economy in Kosovo has initiated a subsidy program for households to install solar thermal systems for heating sanitary water. The first phase of applications is open until August 31.

Subsidy for Solar Thermal Systems

Kosovo has launched a subsidy program aimed at encouraging households to install solar thermal systems for heating sanitary water. This initiative, driven by the Ministry of Economy, offers financial assistance to household consumers.

The subsidy program will cover 40% of the cost of a complete solar water heating system, up to a maximum of €1,000. The Ministry of Economy encourages all interested parties to make use of this subsidy opportunity. PV Magazine reported.

The application process is divided into two phases. The first phase is currently open and will close on August 31. The second phase will begin on October 31.

Aligning with the Kosovo’s 2031 Energy Goal

Kosovo's government is implementing an ambitious Energy Strategy spanning from 2022 to 2031, aiming to significantly increase solar energy capacity. Elen, a key player, is set to drive this transition, aligning with goals to reduce greenhouse gas emissions by 32% and achieve 35% of electricity from renewable sources by 2031.

The strategy targets various renewable energy capacities, including wind, solar, and biomass, with Elen actively involved in multiple projects across business and industrial sectors. Collaborating with investors and engaging with governmental bodies, Elen emphasizes its commitment to fostering a conducive environment for renewable energy and contributing positively to the community through sustainable solutions.

Earlier this year, Kosovo announced plans to auction off 950 MW of renewable energy over the next two years, representing a €1.2 billion investment. The country aims to source 35% of its electricity from renewables by 2031.

European Investment Bank Fund

Recently, the European Investment Bank (EIB) granted a EUR 33 million loan for a solar power plant project in Kosovo, with a peak capacity of 120 MW. This investment aligns with the European Union's Economic and Investment Plan for the Western Balkans, aiming to mobilize a total of EUR 30 billion in grants, with the Solar4Kosovo project being part of this initiative.

The proposed photovoltaic plant, situated on a former coal ash dump near Prishtina, is expected to produce 169 GWh per year. Alongside the EIB loan, the project receives a EUR 32 million grant from the EU's Western Balkans Investment Framework, further supporting Kosovo's renewable energy goals and decarbonization efforts.

With a total investment value of EUR 107 million, including funds from Germany's KfW Development bank and Kosovo Energy Corp. (KEK), this solar power plant represents a significant step towards sustainable energy production and the reduction of Kosovo's reliance on conventional energy sources.

Kosovo's Minister of Finance, Labour, and Transfers, Hekuran Murati, emphasizes the importance of this project in accelerating the country's transition to renewable energy sources, especially considering its heavy dependence on outdated coal plants for electricity generation.


In addition to the solar power plant, the Solar4Kosovo project includes a solar thermal facility for the district heating system in the capital city. Meanwhile, the establishment of Energy Storage Corp. (ESCorp) aims to manage battery projects with a total capacity of 125 MW and 250 MWh, funded by the United States' Millennium Challenge Corp. (MCC).

These battery systems, valued at USD 180 million, will play a crucial role in storing surplus electricity and stabilizing the frequency in Kosovo's transmission system, contributing to the country's energy security and grid reliability.

Kosovo's subsidy program for solar thermal systems underscores its commitment to renewable energy, aligning with ambitious targets outlined in its Energy Strategy. With significant investments from domestic and international entities, initiatives like Solar4Kosovo and ESCorp are driving progress towards sustainable energy production and enhancing energy security

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