More than $10,000 will be donated to local charities through the seventh annual Festival of Lights, sponsors Belco and BF&M announced on Wednesday.

Thirteen winners will receive awards, get $200 credits on their electricity bills and have donations made to charity in their names, the sponsors said in a press release.

The competition encourages people to decorate their homes and businesses over the holiday season.

First, second and third place winners are selected in the East, West and Central parishes among residential entries and a commercial winner is also designated for each area.

"We encourage everyone in the community to participate, brightening neighbourhoods with decorations that celebrate the joy of the holiday season, including lights and decorations to mark Christmas, the New Year, Kwanzaa, or Chanakah or Eid, the celebration held at the end of Ramadan," said Belco communications officer Thania Redmond.

One winning neighbourhood will also be designated for working together to decorate their community.

The sponsors will donate $1,000 to a designated charity for first place winners, $750 for second, and $500 for third place and community winners.

"We are very pleased to be conducting the Festival of Lights again this year," said BF&M vice president Glen Gibbons. "Our hope is that this year more people than ever will participate, bringing joy to the community with their creative decorations and giving help to the non-profit organisations that need it."

Entry forms are available from both sponsors and other businesses around Hamilton.

The deadline for applications is Friday, December 6 at 5 p.m. and the judging will take place on Monday, December 9, between 6 and 11 p.m.