Montenegro's state utility Elektroprivreda Crne Gore (EPCG) has launched a tender for 70 MW rooftop solar capacity in the country under its Solari 5000+ program with a budget of €70 million, inviting both individuals and businesses to enter the competition for state subsidies.
Solar power systems under the scheme can be installed in residential buildings that have up to 4 floors with an approved electricity connection that is equal to or greater than the power of PV system to be deployed.
Buildings that offer good solar potential will be allowed to enter the competition, for instance users with one or more roofs oriented to the south, southeast or southwest, and whose buildings have flat roof surfaces, not shared by neighboring buildings, trees, etc.
"The future user of the project is given the opportunity to install a suitable photovoltaic system and repay it in equal monthly amounts through a credit arrangement provided by EPCG, for a maximum period of up to 10 years, in the amount of their average monthly electricity bill," explained the utility.
Winners will also get a 20% discount on the total value of solar panel investment, including value added tax (VAT).
Of the total capacity on offer, 40% each will be awarded in the southern and central regions, and 20% in the northern region, as per the EPCG that counts population density and solar potential for this regional representation of solar.
Last date to submit applications is January 31, 2023, as per the tender announcement.
Solari 5000+ replaces the previous rooftop solar scheme Solari 3000+ and Solar 500+ under which EPCG counts as having installed around 2 MW PV capacity, as announced in September 2022 (see New Program For 5,000 Rooftop Solar Systems In Montenegro).
Recently the EPCG Board of Directors President Milutin Djukanovic announced that the government has lowered the VAT on solar equipment to come down to 7% from 21% on all systems of up to 1 MW. He said this will decrease the cost of solar power plants by 12.28%.
Making the announcement on his Twitter handle, Djukanovic added that the government has done away with urban planning technical requirements for solar projects of up to 1 MW, thereby significantly simplifying construction procedures for solar in the country.
The move to reduce VAT follows a proposal the European Council announced in December 2021 to bring down VAT rates on products and services beneficial for the environment including solar (see Solar PV Panels May Get Cheaper In EU).