Incentives for Renewable Energy in Latvia (2025 Guide)

As Latvia strengthens its commitment to renewable energy and energy independence, an increasing number of government-backed subsidies and loan programs are available in 2025 for households and businesses investing in solar panels, wind energy, heat pumps, and energy efficiency improvements.

At Freen, we help clients take full advantage of these opportunities. Our portfolio includes cutting-edge renewable energy solutions—such as wind turbines, solar systems, and sodium and lithium-based energy storages—designed for both residential and industrial use. We also guide our clients through the entire grant application process, from early-stage investment planning to preparing technical documentation and submitting funding applications. With our expertise, your green energy project is not only technically sound but also financially supported by national programs.

Below, we provide an overview of the most important grants and subsidies currently available in Latvia.

Energy Efficiency Loans with Capital Discounts for Enterprises

One of the flagship initiatives is the energy efficiency loan program for enterprises, which is implemented under the EU’s Recovery and Resilience Facility. Although the first round of applications has closed, a new round is expected to open in the second quarter of 2025.

This program offers companies the opportunity to improve their energy performance or integrate renewable energy technologies, while receiving a capital discount of up to 30% on the principal loan amount, excluding VAT. The maximum discount available to a group of related companies reaches €1.5 million. Supported measures include improving the energy performance of non-residential buildings, upgrading heating and cooling systems, modernizing lighting and insulation, and investing in more energy-efficient production equipment.

Companies can also install renewable energy technologies, such as solar panels, wind turbines, heat pumps, or biomass and biogas systems. To qualify, projects must achieve at least 30% primary energy savings, and where renewable technologies are introduced, at least 80% of the energy generated should be used for the company’s self-consumption. This program aims to significantly reduce Latvia’s CO₂ emissions, targeting an annual cut of nearly 11,500 tons. More information on this website.

Key features:

• • Up to 30% capital discount on the principal amount of the loan (excluding VAT) after successful project completion.
  • Maximum discount per group of related companies: EUR 1.5 million.
  • Eligible activities include:
    • Improving energy efficiency in non-residential buildings (e.g., upgrading heating and cooling systems, lighting, and insulation).
    • Purchasing and installing energy-efficient production equipment.
    • Recovering secondary energy from production processes.
    • Installing renewable energy systems:

Energy Efficiency Program for Multi-Apartment Buildings

Another major program focuses on improving the energy efficiency of multi-apartment buildings. Under the Energy Efficiency Programme for Apartment Buildings 2021–2027, apartment owners can access loans with repayment terms of up to 20 years, either from ALTUM or from commercial banks, backed by an ALTUM guarantee covering up to 80% of the financing. Once the renovation is complete and energy-saving targets are met, projects are eligible for a capital rebate of between 40% and 50% of the eligible costs.

The size of the rebate depends on the level of energy savings achieved and the technologies used; for example, buildings that achieve at least 30% energy savings and install prefabricated wooden panels or ventilated facades may qualify for the maximum rebate. Even projects in the Latgale region achieving more modest energy savings between 10% and 29% can benefit from a 40% rebate, though capped at €80,000. To be eligible, the building must have at least three apartments, and projects must be completed by March 2029. Applications are submitted through an authorized representative of the apartment owners, and comprehensive support is available throughout the process. More information on the website.

Key features:

• • • Loans with up to 20-year repayment terms from ALTUM or commercial banks.
    • ALTUM guarantees covering up to 80% of the financing.
    • Capital rebate (40–50%) on eligible costs after project completion and energy saving targets are met.

Conditions:

• • • Achieve at least 30% primary energy savings (or 10–29% in the Latgale region).
    • Bonus rebates for projects using prefabricated wooden panels (up to an additional 20%) or ventilated facades.

(Currently Closed) Program for Single-Family Homes

While Latvia previously offered a popular support program for single-family homes, this program is currently closed. The initiative provided grants of up to €5,000 and additional technical assistance funding of up to €1,000 to homeowners undertaking energy-efficiency improvements such as wall insulation, window replacement, or heating system upgrades. To qualify, projects had to deliver at least a 20% reduction in heating energy consumption and improve the home’s energy class to at least Class C. Eligible beneficiaries included larger families and residents outside of Riga and its surrounding regions. Although this program is not currently active, similar initiatives often reopen, and it is worth keeping an eye on updates from ALTUM and related institutions.

How Freen Can Help You Access Latvian Energy Grants

With such a broad range of funding instruments available in 2025, now is the perfect time to invest in renewable energy. Yet navigating grant systems, especially those with technical and regulatory requirements, can be overwhelming. That’s where Freen adds value beyond hardware. We not only supply reliable solar and wind solutions, energy storage systems, and smart grid components, but we also provide expert guidance throughout the investment lifecycle. Our specialists help clients select the right technology mix, prepare investment plans aligned with current funding programs, ensure compliance from the outset, and deliver energy systems tailored to individual needs.

Whether you are a homeowner seeking greater energy independence or a company embarking on a large-scale renewable energy project, Freen is your trusted partner from idea to implementation.

Let us help turn your sustainability ambitions into reality—with both the right technology and the right financial support. Contact us today to get started!

Frequently Asked Questions: Solar Panel Grants & Energy Support in Latvia

1. Are there grants for solar panels and wind turbines in Latvia in 2025?
Yes, there are several government grants for solar panels available in Latvia. These programs are primarily aimed at businesses and multi-apartment building owners who want to improve energy efficiency and reduce their carbon footprint. While free solar panel grants for individual homes are currently not active, commercial solar panel grants and other solar panel installation subsidies remain available through EU-backed support schemes.

2. Can I get a grant for solar panels as a business owner?
Absolutely. Latvia offers solar panel grants for businesses under the Energy Efficiency Loan with Capital Discount program. This allows eligible enterprises to receive grant money for solar panels and other renewable energy installations, with up to 30% of project costs reimbursed after successful implementation. These gov grants for solar panels can significantly reduce the upfront investment needed for solar energy systems.

3. What are the benefits of solar panels for homes and businesses?
The benefits of solar panels are numerous. For homeowners, the benefits of solar panels in homes include lower energy costs, improved property value, and reduced environmental impact. For enterprises, the benefits of commercial solar panels and solar panels on commercial buildings include long-term cost savings, enhanced energy independence, and improved ESG performance. In both cases, solar panels reduce electricity bills, which is especially valuable in times of energy price volatility. If combined with storage, the benefits of battery storage with solar panels include backup power during outages and optimized use of self-generated electricity.

4. How much are solar panels and installation costs in Latvia?
The cost of installation of solar panels depends on the size, type, and specific requirements of your property. While pricing can vary, many projects benefit from grants and cheap loans for solar panels, which significantly reduce the net expense. To get an accurate estimate, it’s best to consult a professional company like Freen.

5. What are the requirements for solar panel installation in Latvia?
Solar panel installation requirements vary depending on building type and location, but in most cases, a technical project, building permit, and connection agreement with the grid operator are required. Larger systems, especially in commercial or apartment buildings, may need to meet solar panel installation code requirements. Freen can assist with every step—from evaluating your needs to full installation of solar panels.

6. Are there any tax benefits of solar panels in Latvia?
While Latvia does not currently offer direct tax benefits of solar panels, the available solar panels government grant programs often cover a large portion of capital costs, which effectively lowers the financial burden. Additionally, the long-term financial benefits of solar panels include reduced operational expenses and improved asset value, especially when energy prices rise.

7. What makes Freen a reliable partner for solar energy projects?
Freen is your full-cycle partner. We help identify the best technologies, assist with applying for solar panel grants, and ensure that your project meets all solar panel installation and subsidy criteria. Whether you’re interested in residential solar panels, commercial solar panel grants, or hybrid solutions that combine wind and solar, we offer tailored support from planning to completion.