Portugal Announces €40 Million 'E-Lar' Program to Subsidize Switch to Electric Appliances
The Portuguese government, through the Ministry of Energy and Environment, has announced a new policy initiative named 'E-Lar', backed by a €40 million fund to accelerate the country's transition away from domestic gas consumption. The program, set to launch at the end of September, will provide direct subsidies for families to replace gas-powered appliances with more energy-efficient electric models. Minister Maria da Graça Carvalho presented the policy as a simplified and more direct successor to the previous 'Support for More Sustainable Buildings' program, anticipating high demand and that the allocated funds will "run out quickly." The primary objective of the E-Lar program is to reduce household carbon emissions and energy costs by promoting modern technology. The government estimates that up to 30,000 families could benefit from the initiative.
The implementation strategy revolves around a digital voucher system. Eligible households will receive vouchers that can be redeemed at participating retailers for the purchase of new electric stoves, ovens, and water heaters with an energy rating of 'A' or better. The program's structure provides tiered support, with a maximum subsidy of €1,650 for families on the social electricity tariff, a designation for the most economically vulnerable. This higher tier also includes the costs of delivery and installation. All other families with a standard electricity contract can receive up to €1,100. To apply, citizens will use a portal on the Environmental Fund's website. The funding is secured primarily through Portugal's national Recovery and Resilience Plan (PRR), which provides €30 million, supplemented by €10 million from the Environmental Fund. This direct-to-consumer subsidy model, where the Climate Agency pays the retailer directly, is designed to remove financial barriers for families, who will not need to pay upfront and await reimbursement.
In a parallel announcement, Minister Carvalho introduced the 'Bairros +Sustentáveis' (More Sustainable Neighborhoods) program, a separate but related initiative with a substantial €60 million budget. This policy targets deeper energy-efficiency renovations in economically vulnerable neighborhoods. Under this program, property owners can receive grants of up to €15,000 per residential unit for comprehensive upgrades. These include the installation of thermal insulation, green roofs, solar panels, and the replacement of old windows. The stated goal is to fully renovate 3,500 homes, aiming for a minimum 30% reduction in their primary energy consumption. Acknowledging the tight deadlines associated with PRR funding, the minister explained that the program will retroactively accept applications for qualifying works completed since February 2020, provided proper documentation is submitted. Together, the E-Lar and Bairros +Sustentáveis programs represent a significant government push towards improving the energy performance of Portugal's housing stock.
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