If you’re looking for information on incentives for solar panels and energy efficiency improvements in 2025, the landscape has changed significantly. The government has announced major changes as part of the 2025 State Budget, with a shift in support toward the most vulnerable populations and new programs currently being developed.
What has ended
The government has ended the Program to Support More Sustainable Buildings (PAE+S), which previously provided incentives for installing solar panels, replacing windows, and other residential energy efficiency improvements. The decision was attributed to the depletion of funds and administrative capacity constraints at the Environmental Fund.
The new E-Lar program
In its place, E-Lar was created, focused on vulnerable families and aimed at the purchase of energy-efficient appliances—stoves, ovens, water heaters, and storage heaters—as an alternative to gas-powered equipment. It is a program with a more limited scope than its predecessors.
Sustainable Urban Areas
This program aims to improve energy efficiency in socially vulnerable urban areas, including support for building rehabilitation and interventions in public spaces. Eligible beneficiaries include parish councils, residents’ associations, and private social solidarity institutions.
Solidarity Gas Cylinders
Support for the purchase of gas cylinders for low-income families received an additional 2.5 million euros in 2025, ensuring the continuity of this support for the most vulnerable families.
What to do now?
Given this context, the practical recommendations are:
- Monitor official announcements—new programs may emerge throughout the year, including support for the purchase of solar panels via vouchers
- Check your eligibility for the E-Lar program if you still use gas appliances at home
- Explore regional programs—some municipalities and the CCDR Norte have independent energy efficiency initiatives
It is also important to note that photovoltaic systems and heat pumps offer attractive returns on investment even without direct subsidies, especially when compared to current electricity prices in Portugal. The LEFE team can calculate the expected return for your specific situation—with no obligation.
