Heat pump water heaters offer an effective alternative to electrical resistance water heaters for sanitary use and is a renewable energy source.
Problem addressed:
buildings with no roof top access do not have the possibility to install a solar renewable energy source (solar water heaters) for hot water production. The incentive scheme for heat pump water heaters gives the possibility for these buildings to produce hot water more efficiently, when compared to the prevailing electric resistance boiler, while generating renewable energy, in accordance with Annex VII of the EU RE Directive on heat pumps operating in the heating mode. Such energy efficient heat pumps contribute and count towards the 10% renewable energy target for Malta and help buildings reach the Near Zero CO2 emissions targets. The scheme is open to the residential sector, both for those with and without access to a rooftop, thus solving a multitude of issues such as confined space or shaded rooftops that prohibit the use of solar heaters.

40 per cent subsidy, up to a maximum of €400

1) Households - to reduce their energy bill, enhance energy efficient use and produce renewable energy
2) Government of Malta – Heat pumps contribute towards reduction of carbon dioxide emissions and support the achievement of 10% national renewable energy target for 2020.

Resources needed

- Processing of applications and allocation of funds (administrative)
- 40% grant on capital up to a maximum of 400 Euro per heat pump water heater for households. Average price is 1700-2000 Euro
Foreseen budget allocation (2018): 450,000 Euro
Funds used so far: scheme started in October 2017

Evidence of success

This scheme has just been launched. Given that almost 60% of dwellings are flats/apartments/maisonettes as per 2011 National Census data, this scheme is likely to be successful given that apartments have limited space on the roof to install multitudes of solar heaters. Domestic hot water is also one of the major energy consuming sectors in households. Shifting to heat pumps would reduce energy consumption by about 600 kWh/year for each household.

Difficulties encountered

The proper use of heat pumps need to be emphasized. Cycling of heat pump compressor around the set point temperature in stand-by mode is very inefficient and should be avoided. This scheme can also be extended to commercial sectors (such as restaurants, hotels), where hot water consumption is high.

Potential for learning or transfer

This scheme can be implemented in any other region in Europe, especially in areas where the main energy source is electricity and there are no feasible options for the use of other sources such as natural gas, wood chips or solar energy. This is also very interesting for touristic areas, well known to be densly populated.

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Main institution
Ministry for Energy and Water Management - Energy and Water Agency
Malta, Malta
Start Date
October 2017
End Date


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