Why the government no longer funds the installation of solar systems
In recent years, solar energy in Armenia has developed at an unprecedented pace. If a few years ago the installation of solar systems was considered a solution for the future, today it has become a sustainable and widely used energy source.
According to the energy sector development strategy adopted by the Government of the Republic of Armenia in 2021, it was planned that by 2030 solar energy should make up about 15% of the total energy system, with an installed capacity of approximately 1000 MW.
However, the active development of the sector, the growth of private investments and the availability of technologies led to the fact that this indicator was not only achieved, but also exceeded. Today, more than 1040 MW of solar capacity has already been installed in Armenia, which makes up about 17.5% of the total energy system.
Why was government funding stopped?
The main purpose of state subsidies is to ensure the initial development of a sector. When the sector reaches a self-sufficient level, direct state support gradually ceases, making way for market mechanisms.
In the case of solar energy, several main reasons can be identified:
- The sector has reached a stage of sustainable development,
- the cost of solar systems has decreased significantly,
- banking and credit instruments are now available to citizens and businesses,
- the private sector is actively investing without state support.
In these circumstances, continued state funding is no longer considered necessary.
New direction: solar systems with accumulators
Despite the cessation of subsidies for classic solar systems, the state is not abandoning its policy of developing the sector. A new project is currently being developed that provides for subsidizing solar systems with accumulators.
This is an important step because accumulators allow you to:
- to conserve the electricity produced,
- reduce dependence on the grid,
- ensure power supply even at night or in the event of outages.
Electricity export opportunities
In parallel, the state is also working on developing infrastructure for exporting the electricity it produces. This means that in the future, solar energy can become not only a source of domestic consumption, but also a resource that provides economic income.
The cessation of direct state funding of solar systems does not mean the decline of the sector. On the contrary, it indicates that solar energy is already a well-established, competitive and independent sector in Armenia.
In the next stage, the emphasis is on technological deepening, the introduction of accumulators and export opportunities, which makes solar energy not only an ecological but also a strategic sector.
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