Armenian government proposes shift in solar power accounting, sparking backlash from homeowners

Armenia’s Ministry of Territorial Administration and Infrastructure has proposed changes to the energy law that would alter how electricity generated by household solar panels is credited, prompting criticism from homeowners and energy experts who say the move would make small-scale solar investments far less attractive.

Under the draft amendments, self-generating consumers connected to the grid with systems of up to 15 kilowatts – typically private homeowners – would have their produced and consumed electricity netted on a monthly basis, regardless of when the power is generated or used. Currently, net metering is calculated annually, allowing households to offset lower winter production with surplus electricity generated during sunnier months.

Homeowners who installed solar panels using bank loans say the proposed change would significantly worsen their financial position.

“Under the current system, summer surplus electricity is credited and used in winter, when production drops,” said Arusyak, a homeowner who installed solar panels with borrowed funds. “That made loan repayments manageable. If this change is adopted, we lose that balance and solar panels will no longer make economic sense for ordinary families.”

Critics argue the shift would allow utilities to buy excess electricity from households at lower summer prices, while forcing the same households to buy power back at higher winter tariffs, all while continuing to service solar installation loans.

In a written response to Panorama.am, the ministry said the proposal is still under discussion and has not yet been submitted to the parliament. “There is no final decision at this point,” the ministry said.

However, the draft was posted for public discussion on the government’s e-draft.am platform from September 5 to 21, 2025, where it drew largely negative feedback, Panorama.am revealed.

Energy expert and political analyst Vahe Davtyan said the proposal marks a fundamental shift in regulatory logic.

“Moving from annual to monthly net metering effectively redefines the citizen from a long-term system partner to a short-term surplus supplier,” Davtyan told Panorama. “This undermines the very idea of net metering, which is based on seasonal balancing – summer production and winter consumption at the same tariff.”

Davtyan also warned of broader consequences. “When the rules change for citizens who have already invested, institutional trust is damaged. This sends a negative signal not only to solar energy users, but to small and medium energy initiatives overall,” he said, adding that the change could strengthen large operators at the expense of distributed generation.

The proposal surfaced amid broader turbulence in Armenia’s power sector, following the appointment of a new interim manager at Electric Networks of Armenia (ENA) and the government’s move seize the utility from businessman and philanthropist Samvel Karapetyan.