Forcing entrepreneurs to install solar panels is against the law - Ministry of Energy

The Ministry of Energy has responded to recent reports that business entities in some regions of Uzbekistan are being coerced into installing solar panels. Some official organizations have been sending letters threatening to cut off electricity supplies if the installations are not completed.

According to the Ministry's warning letters to enterprises, the President’s decisions focus on further developing the field, achieving target indicators for saving electricity and natural gas, and promoting efficient and economical use of these resources. While solar panels and solar water collectors are encouraged, the Ministry emphasized that no legislation permits compelling individuals or businesses to install solar panels under threat of disconnection.

“Forcing businesses to install solar panels is against the law, and the Ministry of Energy does not endorse such practices,” the statement from the Ministry read.

The Ministry also noted that the number of companies importing solar panels and components into Uzbekistan is increasing. Over 1.5 million solar panels were imported in the first eight months of this year by 107 business entities, with 64 of those joining this year. Additionally, 7,000 inverters were imported by 62 entities.

"In September 2023, the average price for a solar panel in the "on-grid" system with a capacity of one kilowatt was 10 million soums, while in the "off-grid" system, it was 13 million soums. This year, prices have decreased by more than 30%, now ranging from 7 million soums to 9 million soums.

The price of a 5 kW solar panel in the "on-grid" system was 50 million soums last year, compared to 35 million soums in September 2024. Similarly, the price for the "off-grid" system dropped from 65 million soums to 45 million soums.

These reductions are attributed to increased market competition and falling prices from China, the main producer," the report states.

The Ministry also highlighted that the gradual increase in energy tariffs for legal entities and entrepreneurs starting October 1, 2023, and for residential consumers from May 1, 2024, has spurred greater interest in solar panels and solar collectors.

“From the above, it is clear that the Ministry of Energy does not support forcing businesses to install solar panels. However, if entrepreneurs recognize the benefits of solar panels for their businesses, it would be advantageous for them. Contrary to some beliefs, there is no shortage of supply or demand in this market,” the Ministry’s statement concluded.

It is worth noting that earlier, both the district electric network enterprise and the gas supply enterprise had warned entrepreneurs that failure to install solar panels, collectors, modern gas burners, and compensation equipment within 10 working days would result in disconnection from electricity and natural gas supplies.