The government today announced a 40 per cent subsidy on heat pumps, which are a more energy efficient alternative to water geysers.
Announcing the new initiative, Energy Minister Joe Mizzi said the water pumps were a good alternative to a solar water heater in households which did not have access to a roof.
The pumps require are an externally mounted unit, much like an air conditioner compressor. They use ambient temperature to heat up water.
Mr Mizzi said the pumps would save around 600 units of electricity per year when compared to a normal water heater.
He said the new technology was still relatively expensive, which is why the government decided to offer the 40 per cent subsidy, up to a maximum of €400.
The subsidy scheme will be administered by the water and energy regulator.
Applications for the scheme open on Monday.
Mr Mizzi said the scheme would be another step towards Malta hitting its 2020 renewable energy goals.