A new €1 million grant scheme to help households install or replace solar water heating systems was approved by the cabinet on Wednesday, offering subsidies of up to €900 as part of efforts to reduce energy costs and encourage greater use of renewable energy.

Energy Minister Michael Damianos said the scheme aims to provide incentives for the installation and replacement of domestic solar hot water systems, helping households lower their energy bills while supporting the country’s energy transition.

The scheme will be administered by the Renewable Energy and Energy Saving Fund and applies to integrated solar water heating systems which meet specified technical standards.

Only systems included on an approved equipment list will qualify for funding, while installations must be carried out by registered installers to ensure compliance with the scheme’s requirements and reduce the risk of unsuccessful applications.

Eligible households in the general category will receive a grant of €500. The subsidy rises to €900 for homes in mountainous areas, while vulnerable households will also qualify for grants of €900.

Applications will remain open until December 20, 2026, or until 2,000 applications have been submitted, whichever comes first.

Damianos encouraged residents to familiarise themselves with the scheme’s conditions and “take advantage of this opportunity” to upgrade their homes with more energy efficient solar water heating systems.