In Armenia Individuals may Sell Solar Energy to Distribution Networks without Taxes
Legislative changes in the field of energy saving and renewable energy in Armenia first and foremost opens a field for development of renewable energy. Hayk Harutyunyan, Deputy Minister of Energy and Natural Resources of Armenia, expressed this standpoint in an interview with Armenpress.
“With these changes solar energy is free from any taxes, licenses and fees in case of power up to 150kW. Wind energy will also get rid of any taxes up to 150 kW power, however, construction license should be granted, as there are man-made hazards here. It’s a more complicated structure, which should be controlled,” Hayk Harutyunyan said. In his words, changes to the law refer the branch of geothermal energy as well, however, according to the Deputy Minister, in that case there is no need to connect the network, i.e. there is no legal settlement, it may be regarded as a simple gas boiler.
“With law amendments a field is being established, that every business and family installed appropriate power, produced energy to satisfy its needs, and provide surplus energy to the distribution network and be paid for that. What is the most crucial, it’s possible to supply day or season surplus to the networks and take back when there is no sun, but you need power supply, i.e. the network, we may say is becoming an accumulator, an energy reservoir,” Hayk Harutyunyan stated.
According to the Deputy Minister, this legislation functions in many countries, but with different regulations. “In our case we should take into account energy experience and market peculiarities,” he said.
Hayk Harutyunyan mentioned that in this field, experience of the most developed country in the world, i.e. Germany, shows that individuals and farmers comprise a serious number from renewable energy resources. “Currently there are lots of businesses, individuals in Armenia, who were looking forward to these changes. With small steps it may provide quite a big result. Our purpose is developing the field of independent producers. People, who want to ensure themselves from further price hikes and changes, may obtain certain degree of independence, and want to capitalize money which they pay for power supply, may install solar panels, secure repurchase after 10 years, and 20 and more years later provide themselves with free power supply. This firstly satisfies the demand of those people,” the Deputy Minister added.
Hayk Harutyunyan refused to make any anticipations regarding impact over electricity price tariff, stating formation of consumer tariff depends on many factors. “I may clearly say that this regulation won’t have a negative after-effect on final tariff and will provide certain technical solutions for the same distribution networks. Suppose that somebody installs a solar panel on the roof of the house and produces energy, whose neighbor hasn’t installed it. If that person provides surplus energy to distribution network, the latter will immediately provide it to the neighbor and many expenses will be reduced,” the Deputy Minister clarified.
Hayk Harutyunyan highlighted that people with financial resources invested in this field, saying he himself plans to apply to a credit organization and purchase solar panels. “If a person has his/her own money and has nowhere to spend, this is a good investment. But if there is problem with initial money, he/she may get a loan with 10.5% interest rate for 10 years, which doesn’t require initial amount, neither a co-financing. I’m going to apply and insert solar panels on the roof of my house. The amount, which I pay for power supply every month, I’ll pay for the loan. Upon my calculations in 7-10 years I will repay the loan (on account of volumes of energy consumed by my family) and in the end, the devices will be mine, and 20 years later I’ll have free power supply,” he said.
He only instigated to apply to specialized companies, as proper planning of the station and use of technologies is crucial here, “Due to improper devices lost of power may emerge.”
According to changes, every physical and legal person may install solar panels, due to which he/she will be able not only to satisfy his/her needs, but sell surplus energy to a distribution network.
The National Assembly on March 15 passed the draft bill on amendments to RA Law on “Energy saving and renewable energy” and other laws.
It’s anticipated that in mid-term perspective a range of new powers will be initiated through application of new and clean (“green”) technologies in energy system, including solar energy as well, which will considerably ease burden of current productive powers, by decreasing dependency from imported hydrocarbon fuels, by which Armenia’s economy will be diversified, from the perspective of provision of alternative ways of power supply (import and/or production) and degree of energy independence will rise.
By Ani Nazaryan
