
The government has announced significant changes to energy efficiency support programs for 2025. Some programs have been discontinued, others have been revamped, and there are new measures for vulnerable families. Find out what has changed.
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.
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.
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.
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.
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.
Given this context, the practical recommendations are:
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.
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