Armenia has a significant solar energy potential. The average annual amount of solar energy flow per square meter of horizontal surface is about 1720 kWh (the average European is 1000 kWh). One fourth of the country’s territory is endowed with solar energy resources of 1850 kWh/m2/year. By the decision of the Public Services Regulatory Commission the procedure for determining the electricity tariff produced by the power plants using the renewable energy sources was approved. According to it, the tariff for the solar energy is set on an annual basis. According to the decision of the Public Services Regulatory Commission N 128-N dated 25 May, 2016 the tariff for solar energy amounts 42, 645 ARMD / kWh excluding VAT. In accordance with the above-mentioned procedure, in the end of every year the tariff for the solar energy is indexed due to the fluctuations in the national currency of Armenia against the USD for a certain period of time and due to the changes of consumer prices in the Republic of Armenia. This tariff is determined and revised due to the definite method adopted by the Commission decision N 88-N dated 22 April, 2015.Armenia has a significant solar energy potential. The average annual amount of solar energy flow per square meter of horizontal surface is about 1720 kWh  (the average European is 1000 kWh). One fourth of the country’s territory is endowed with solar energy resources of 1850 kWh/m2/year. 

For the purpose of popularizing the autonomous energy production in the renewable energy sector, the Ministry of Energy and Natural Resources has initiated a number of legislative amendments in the Law on Energy Saving and Renewable Energy and Energy, which will create conditions for medium and large consumers to generate electricity for their own needs. The proposed legislative amendments have already been approved by the government. The Ministry of Energy and Natural Resources informs that it is recommended to reconsider the current 150 kW limit for large consumers to meet their own needs through autonomous energy production. Currently individuals and legal entities can install up to 150 kW solar autonomous plants to generate electricity to meet their needs and sell the surplus to “Electric Networks of Armenia”.

According to Hayk Harutyunyan, deputy minister of energy infrastructure and natural resources, this capacity is not enough for large consumers, so the law on “Energy” offers to revise the 150 kW limit and bring it to 500 kW. This will create a legislative basis for major electricity consumers to implement autonomous power generators to meet their own needs. The Law on Energy Efficiency and Renewable Energy recommends setting conditions for the regulation of the flows between an autonomous energy producer using renewable energy resources and an electricity distribution licensee. Accordingly, the calculation of compensation is changing. If now the compensation is monthly, then it offers to make it yearly. By the end of the year, the distribution company will calculate its cash flows with the autonomous producer over the whole year, and only then will pay half the price for the over-supplied electricity.