With rising electricity prices, several Kosovo citizens and business owners have benefited from government subsidies for renewable energy, incentivising investment in solar energy systems, to reduce electricity costs.
Haki Emini, a resident of Zhabar, a village in the municipality of Mitrovica, decided to invest in solar panels for his home after hearing of the benefits from someone who had already installed the system.
In November 2024, Emini installed a 5-kilowatt solar system on the roof of his house, which he says is well-suited to the energy needs of an average family. The total cost of the installation was around 3,000 Euros, and the government covered approximately 1,300 euros.
“The benefits are already visible in our monthly electricity bills,” he noted. Before installing the system, his family’s monthly electricity expenses averaged between 50 and 60 euros. Now, they have dropped to around 30 to 35 euros.
“The panels generate electricity from morning until sunset,” Emini added, stating that the installation was completed in a single day.
Recent government subsidies and rising electricity prices have caused solar energy to be considered as a viable alternative to traditional energy sources, and to their increased adoption by both private households and industrial enterprises.
The solar panels generally come with a 25 to 30-year guarantee, inverters are covered for up to 10 years, and the mounting structures are guaranteed for 12 years. Maintenance can be done either by the homeowners themselves or by the company under a service agreement.
Kosovo’s solar potential
Chimneys of coal-fired power plants between houses in the town of Obilic, near the capital Pristina, Kosovo. Photo: EPA/VALDRIN XHEMAJ
Kosovo has considerable potential for solar energy with approximately 2,000 to 2,300 hours of sunshine per year.
Cities that benefit the most from this climate include Gjakova/Djakovica, Prizren, and Rahovec/Orahovac.
The highest interest in solar installations was recorded during March to May 2024, when the Ministry of Economy offered subsidies of 250 euros per installed kilowatt.
For example, a family that installed a 7-kilowatt system during this time received up to 1,750 euros in support.
The call to support household consumers in investing in efficient household appliances and supporting investing in solar power plants was opened in August 2023 by the Ministry of Economy.
Private investments have increased renewable energy capacity in recent years, particularly since 2015, with increased adoption of solar, wind, and hydropower technologies.
Kosovo first introduced support schemes for renewable energy in 2009, which were active until 2020.
The support mechanisms included feed-in tariffs, regulatory frameworks, and self-consumption models. Feed-in tariffs ensured secure energy purchase agreements for renewable generators, typically lasting 10-12 years.
In April 2024, Kosovo’s Assembly approved the Law on the Promotion of Renewable Energy Sources, reintroducing support schemes with updated tariffs
Most energy in Kosovo is produced using coal-fired power plants. The Kosovo Energy Corporation, KEK, operates two coal-fired power plants in Obiliq: “Kosova A” and “Kosova B”.
Electricity production capacity in Kosovo mainly comes from coal-fired power plants, which constitute 87.36% of operational capacity, while the rest comes from hydroelectric power plants and a few renewable energy sources including wind turbines, and solar panels.
Based on Eurostat data, Kosovo has the lowest renewable energy production in the region, with only 6.68% of total capacity coming from renewables.
The Kosovo Energy Strategy 2022-2031 aims to increase the share of renewables to at least 35% of gross electricity consumption.
In April 2025, the Energy Regulatory Office, ERO, approved a 16% increase in electricity prices across all categories. Additionally, starting from June 1, 2025, large businesses with more than 50 employees or an annual turnover of over 10 million euros were moved to the open electricity market. Currently, Kosovo is home to over 1,000 such businesses, which together account for approximately 37% of total electricity consumption.
The decision has sparked opposition from the business sector which have taken legal action by sending their complaints to the court.
Costs and returns of going solar
Solar panels installed at the Student Centre in Prishtina. Photo: BIRN
Solar energy is also gaining fame among businesses in Kosovo.
One example is the “Proton Cable” factory in Prizren, whose manager, Besim Dida, has invested in solar panels both for the factory and his own home.
“We’ve installed panels at both the factory and my house,” Dida explained to KALLXO.com. “At the factory, we have a 540-kilowatt system, which is the maximum capacity we could fit on the roof. We would’ve added more if there was space.”
At his home, Dida installed an 11-kilowatt system and says the benefits are clearly evident.
“When the weather is clear and sunny, the panels cover all our energy needs-both at the factory and at home. We’re very satisfied,” he said.
For Proton Cable, the primary motivation behind the solar investment was cost savings, given the high electricity demands. However, Dida also cited another key reason: the potential imposition of a European decarbonisation tax.
“We export cables to Europe, and we’ve seen signs that the EU will eventually impose a decarbonisation tax. For countries like Kosovo that aren’t EU members and still rely on coal for electricity production, this tax would be an additional burden. That’s why we decided to transition to green energy in our factory,” he explained.
The panels were installed at the beginning of 2024. In some months, the energy produced entirely offsets consumption costs.
“For example, take April,” Dida said. “In April last year, we paid 40 euros for electricity. This April, in 2025, we had a minus of 9 euros. That’s how much we generated beyond our needs.”
The company “MuqaSolar,” which specialises in the installation of solar systems in Kosovo, confirms that interest in solar energy among households is on the rise-especially after public institutions began offering subsidies.
According to MuqaSolar representatives, an On-Grid solar system with a capacity of 7 kilowatts – suitable for a family – costs approximately 6,000 euros. A hybrid system, which includes batteries for energy storage, can cost up to 12,000 euros, due to the additional components and increased convenience.
The company claims that the financial benefits are significant.
“A 7-kilowatt system generates about 9,000 kilowatt-hours annually, which translates into yearly savings of roughly 810, euros” they estimate.
For residential users, the return on investment typically occurs within 6 to 7 years, while for businesses, with their higher energy usage, the payback period can be as short as 4 years.
Aside from economic advantages, solar systems require minimal maintenance.
“Panels have no moving parts and need only one or two cleanings per year to remove dust or snow,” MuqaSolar notes.
Most customers are satisfied with the performance of their systems. “The most common complaints,” the company says, “involve rare cases of inverter malfunction or real-time monitoring issues during internet outages.”
English version prepared by Ardita Zeqiri
