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The use of renewable energy sources increases the energy self-sustainability of cities, enabling citizens to reduce energy costs, which results in an increase in their standard of living. However, solar energy penetration in Bosnia and Herzegovina, and its capital Sarajevo, is not in line with the possibilities. Furthermore, the Sarajevo Canton is extremely polluted during the winter months because of the use of unacceptable heating fuel. The aim of this paper is to introduce photovoltaic power systems use in heating electrification system. In this paper AQI is calculated based on historical data and the hybrid model EMD-SARIMA for air pollution and a solar production forecast is presented. The methodology was tested in the Sarajevo Canton, taking into account 35,000 households. In order to ensure clean air, renewable electric energy use for household heating should be implemented. The widespread use of inefficient individual heating systems characterized by inefficient and expensive use of firewood and the use of coal in individual furnaces in populated areas are the main problems of internal and urban air pollution in Sarajevo Canton. In order to reduce energy poverty in Sarajevo Canton, the use of a floating photovoltaic power plant located on Lake Jablanica with a capacity of 30 MW and the solar prosumers with capacity of 115 MW to provide the 196 GWh necessary for heating electrification of 35,000 households is implemented in this paper. Finally, based on correlation between AQI forecast and solar production it was calculated that the values of the AQI, considering the application of solar energy during 150 days (five months) in one heating season, have significantly decreased. Also renewable energy sources have a very important role in reducing carbon dioxide (CO2) emissions into the atmosphere and reducing urban pollution. With this approach, households would be heated by renewable electricity, which would make Sarajevo a cleaner, smarter city.