If you're installing solar panels in Malta in 2026, there are two main ways the numbers can work in your favour:
Take a government grant and reduce the upfront cost, or skip the grant and benefit from a higher feed-in tariff on exported electricity.
For most households, the better option depends on how much electricity you use yourself and how much you export to the grid.
What grant is available?
Under the 2026 Renewable Energy Sources Scheme administered by REWS, an eligible residential PV system with a hybrid inverter can receive:
65% of eligible costs, capped at €3,000 per system and €645 per kWp.
REWS also states that the application must be made before the equipment is purchased and installed.
Official REWS 2026 Renewable Energy Sources Scheme page
What happens to excess solar electricity?
Electricity generated by your panels can first be used in your home.
If your system is generating more than you are using, the excess can be exported to the grid and paid according to the applicable feed-in tariff.
That means solar can create value in two ways:
- Use it yourself → buy less electricity from the grid
- Export the excess → receive a payment for it
Can you take the grant and still get a feed-in tariff?
Yes.
This is the key point.
Taking the grant does not mean you lose the feed-in tariff completely.
REWS says that if grant support is above 50%, the applicable feed-in tariff is reduced by:
0.2 euro cents per kWh for every 1 percentage point above 50%.
The current grant-supported base tariff is €0.105/kWh.
So:
| Grant level | Approx. FIT |
|---|---|
| 50% | 10.5c/kWh |
| 55% | 9.5c/kWh |
| 60% | 8.5c/kWh |
| 65% | 7.5c/kWh |
So with the full 65% grant, the calculated tariff is approximately:
€0.075/kWh
subject to the floor explained below.
Official REWS Feed-in Tariff Schemes page
What is the floor?
REWS also says the reduced tariff cannot fall below the prevailing proxy market price of electricity.
So in simple terms:
Actual FIT = the higher of: the calculated reduced tariff, or the prevailing proxy market price.
For example, if the calculated tariff was 7.5c/kWh but the proxy market price was 8.0c/kWh, the applicable tariff would be 8.0c/kWh, not 7.5c/kWh.
Because the proxy market price can change, it is better to check the current REWS figure rather than assume a fixed floor.
What if you don't take a grant?
There is a separate 2026 feed-in tariff route for qualifying new PV systems between 1 kWp and under 40 kWp that receive no capital grant or other investment support.
The published tariff is:
€0.15/kWh for 20 years
subject to the applicable scheme conditions and capacity allocation.
Official REWS 2026 FIT table (PDF)
That means the basic choice looks like this:
| Option | Upfront support | Export payment |
|---|---|---|
| Take the grant | Up to 65% of eligible costs, capped at €3,000 | Reduced FIT, around 7.5c/kWh at 65%, subject to the floor |
| No grant | None | 15c/kWh for 20 years |
Which option is better?
There is no single answer for every home.
If you use a lot of your solar electricity yourself, the grant route can be very attractive because it reduces the upfront investment significantly.
If you expect to export a high proportion of your solar production, the no-grant 15c/kWh FIT may be more valuable over the long term.
The decision depends mainly on:
- system cost
- system size
- annual generation
- household electricity consumption
- how much solar you use directly
- how much you export
- how long you expect to own the property
A simple example
Imagine a solar system costing €6,000.
Under the grant route, you could potentially receive up to €3,000, cutting your upfront cost in half.
Your exported electricity would then receive the reduced applicable FIT.
Under the no-grant route, you pay the full €6,000 upfront, but qualifying exports may receive 15c/kWh for 20 years.
Which option wins depends on how much electricity you export over the life of the system.
The bottom line
The real choice is:
Lower upfront cost now, or higher export income over time?
For many households, taking the grant will still be attractive. But for homes that export a lot of solar electricity, the no-grant FIT route may deserve serious consideration.
The best way to compare the two is to estimate your system size, annual generation, self-consumption and exports.
Sources
Compare the numbers for your home
Use our Malta-specific Solar Calculator to estimate your system size, generation, self-consumption, exports and payback for both routes.