The Ministry of Economy in Kosovo has rolled out a new subsidy program encouraging households to adopt solar thermal systems for sanitary water heating. The initial application phase for this specific incentive was launched and remained open until August 31.
This initiative is a key component of Kosovo’s broader strategy to promote renewable energy adoption and enhance energy efficiency across the country.
Application Opens for Solar Subsidy Scheme in Kosovo: Financial Incentives
Under the newly announced scheme, homeowners can receive financial support covering 40% of the installation cost for a complete solar water heating system, with the subsidy capped at a maximum of €1,000. This program is structured in two phases, with the second round of applications scheduled to begin on October 31.
This thermal system subsidy runs parallel to a separate, larger public call for photovoltaic (PV) systems designed for electricity self-consumption. That initiative, which launched earlier on February 6, 2024, targets both households and micro, small, and medium enterprises (MSMEs). Initial results from the first phase of the PV scheme saw 445 household applications, with 29 approved for a total of €45,750, and 67 MSME applications, with 8 approved for €44,200.
Alignment with National Energy Strategy
These subsidy programs are instrumental to achieving the goals laid out in Kosovo’s ambitious Energy Strategy for 2022-2031. The nation aims to generate 35% of its electricity from renewable sources and reduce greenhouse gas emissions by 32% by the end of the decade. The strategy relies on a diverse mix of renewables, including wind, solar, and biomass, and requires close collaboration between government bodies and private investors to succeed.
As part of this push, Kosovo announced plans earlier this year to auction 950 MW of renewable energy capacity over the next two years, signaling an investment of approximately €1.2 billion into the sector.
Major Investments Fueling the Transition
Kosovo’s renewable energy ambitions are being bolstered by significant international financial support. The European Investment Bank (EIB) recently provided a EUR 33 million loan for the Solar4Kosovo project, which includes a 120 MW peak capacity solar power plant. This investment falls under the European Union’s extensive Economic and Investment Plan for the Western Balkans.
The photovoltaic plant, slated for construction on a former coal ash dump near Prishtina, is projected to generate 169 GWh annually. According to industry reports, the total investment for the plant is EUR 107 million, co-financed by Germany’s KfW Development bank and the Kosovo Energy Corp. (KEK).
Hekuran Murati, Kosovo’s Minister of Finance, Labour, and Transfers, highlighted the project’s critical role, stating it is essential for accelerating the country’s shift from its reliance on outdated coal-fired power plants.
Enhancing Grid Stability with Solar4Kosovo
Beyond the large-scale solar plant, the Solar4Kosovo project encompasses a solar thermal facility for the district heating system in the capital and the creation of the Energy Storage Corp. (ESCorp). This new entity will manage battery projects totaling 125 MW and 250 MWh, financed by a USD 180 million fund from the United States’ Millennium Challenge Corp. (MCC).
These battery systems are designed to store surplus electricity and stabilize the grid, playing a crucial role in ensuring Kosovo’s energy security and reliability as it integrates more variable renewable sources.
Sources
- pm – surya ghar – App Store
- Kosovo* to subsidize solar panels for prosumers, solar thermal …
- PAR Principles Mainstreaming in Sectoral Policies Raport for Kosovo
- Call for Photovoltaic (PV) System for Generation of Electricity for Self …
- PUBLIC CALL – eKosova
- A New Era of Energy Efficiency Subsidies in Kosovo – WeBalkans
- Kosovo opens solar thermal system subsidies for mirco to medium …
- Kosovo shares results of solar subsidy scheme – PV Magazine
- Kosovo solar energy storage subsidy policy
- Solar Storage Systems For Kosovo – YouthPOWER
