As of 2024, Armenia’s total installed solar power capacity is 402 MW.²²

Armenia plans to significantly expand its solar energy capacity.⁵

• By 2030, the country aims for solar energy to account for 15% of its energy mix or 1.8 billion kWh by 2030.
• By 2040, the total capacity of solar power is projected to reach 1000 MW.

Nuclear ⁴

Exact tariff details are not given but the following information is available:

Nuclear

• The tariff for electricity generated from ANPP is estimated at around 1.73 cents per kWh.

Natural gas ⁴⁸

• Natural gas is the main source of energy in Armenia.
• This tariff stands at around 6-7 cents per kWh, depending on gas prices and operational costs.

Wind ⁶

• The current feed-in tariff for wind energy is set at approximately 0.08 USD per kWh.

Solar ⁷

• Electicity generated by Masrik-1 Solar Project is at a highly competitive tariff of $0.0419 per kWh.
• For slightly larger PV stations with capacities between 1 MW and 5 MW, the tariff was set in 2018 at approximately $0.05.

Geothermal ⁹

Exact unit price is not given but the following details are available:

• The construction cost of approximately $100 million makes it considerably more expensive compared to solar energy projects, limiting its immediate viability.

As of June 2022, Armenia’s electricity generation sources are: ⁹

While the exact number of hours of power shortages in Armenia today is not readily available;⁹

• During that time, energy mismanagement and low collection rates led to widespread shortages, with households receiving only a few hours of power each day.
• However, due to substantial investments in natural gas infrastructure, new generation capacity, and improved network management, Armenia now enjoys a consistent and largely uninterrupted power supply.

Current installation ⁵

As of December 1, 2022, the Armenian Energy Agency reports that 9,835 autonomous solar producers are now connected to the Armenian power grid.

Projected installations ¹⁰

Total projected number is not available but;

• Rooftop installations will reach to combined solar capacity of 207.5 MW.

Installed Solar Farms ⁵

Currently, 60 licensed solar power plants are working in Armenia.

Projected Solar Farms ¹⁰

There are 11,122 grid-connected solar systems are currently in pipeline.

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Current Demand for Off-Grid Solar in Armenia

• Solar energy adoption in rural areas is growing due to projects like “Solar Energy for Low-Carbon Sustainable Lifestyles.”
• Over 70% of residents in targeted villages (Solak, Aygavan, Malishka) recognize solar’s role in rural development.
• The government sees renewable energy as critical for reducing dependency on other resources and meeting Paris Agreement goals.
• Recent projects in remote areas have reduced CO2 emissions by approximately 14 tons and 615 kg in participating areas.

Future Demand for Off-Grid Solar in Armenia

• Increased demand is expected due to Armenia’s high solar potential and project success.
• Technological advances in solar and battery storage will make off-grid systems more efficient and affordable.
• Supportive policies, such as subsidies and tax breaks, are likely to boost solar adoption.
• Strategic investments in solar infrastructure and training will drive broader adoption.
• As costs decrease, solar energy will become more accessible to a wider audience.
• Future projects will continue to focus on improving rural health and living standards through solar solutions.

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Current Demand for Solar Panels in Armenia

• Armenia’s high solar potential exceeds the European average of 1000 kWh/m², driving significant interest in solar energy.
• 27 companies are currently licensed to produce electricity from solar PV plants with capacities up to 5 MW reflects high solar panel demand.
• $58 million investment has already been invested in on grid solar energy sector.
• Programs like the Energy Efficient Credit Program have led to the installation of 2685 solar water heaters and 101 solar PV systems, particularly in non-gasified communities, reflecting growing demand.

Future Demand for Solar Panels in Armenia

• Following the success of Masrik-1, Armenia plans to build five additional solar PV plants with a combined capacity of 60 MW, further integrating solar into the grid.
• These projects are part of a broader strategy to increase the renewable energy share and reduce reliance on fossil fuels, leading to steady growth in grid demand for solar panels.
• Ministry of Energy policies support annual increases in solar capacity, with no hard limits beyond 2020, indicating a strong future demand.
• Technological advancements and access to soft loans through entities like the German-Armenian Fund are expected to make solar panels more affordable and drive further demand.

A Solar Photovoltaic Installer working in Yerevan would typically earn the following amounts:¹⁶

• Lowest average salary: approximately $8,739 USD per year
• Average salary: approximately $18,214 USD per year
• Highest average salary: approximately $28,597 USD per year

The current population of Armenia is 2,970,531.¹⁷

Estimate for Factory Rent

Monthly Average Warehouse Rental Cost ¹⁸

Key Components of Administrative Costs

Salaries and Wages: ¹⁶

A Solar Photovoltaic Installer working in Yerevan would typically earn the following amounts:

• Lowest average salary: approximately $8,739 USD per year
• Average salary: approximately $18,214 USD per year
• Highest average salary: approximately $28,597 USD per year

Business electricity Price ³

The electricity price for businesses is USD 0.109. These retail prices were collected in December 2023 and include the cost of power, distribution and transmission, and all taxes and fees.

Monthly Rents for Office Space ¹⁹

Following table indicates rental rates in different areas.

Electricity Generation ²⁰

• Electricity Generation: 0.79 million toe in 2022.
• Nuclear: 31.0%
• Natural Gas: 42.2%
• Hydro: 21.1%
• Wind and Solar: 5.7%

 Transmission & Distribution ²⁰

• Armenia’s national electricity transmission system is managed by the state-owned company ArmEnergo.
• It comprises 164 kilometers of 330-kilovolt (kV) lines, 1,320 kilometers of 220 kV lines, and 3,146 kilometers of 110 kV lines. A map of the country’s electric transmission grid is displayed above.

 Energy Access ³

• In Armenia, nearly 100% of the population has access to electricity.
• This universal access covers both urban and rural areas, ensuring that nearly all 3 million residents benefit from reliable energy services.

Energy Exports ⁴

• Armenia is a net exporter of electricity, although most of it is exchanged for natural gas from Iran.
• Armenia exports small amounts of electricity.

Armenia has implemented a range of regulations and policies to support solar energy Armenia development, as part of a broader effort to improve energy efficiency and diversify its energy supply. The key regulations related to solar energy in Armenia include:¹⁵

Law on Energy Efficiency and Renewable Energy:

• This law promotes the development of renewable energy resources, including solar energy.
• It mandates that all renewable energy produced must be purchased by the electricity distribution company.
• The law also creates mechanisms to improve energy efficiency and further develop domestic renewable energy sources.

Public Service Regulatory Committee (PSRC) Tariffs:

• The PSRC, which regulates the energy sector, has set attractive tariffs for newly constructed solar power plants.
• These tariffs are guaranteed for at least 15 years from the date a new plant’s operating license is issued, providing a stable incentive for solar energy investment.

Energy Market Liberalization:

• Amendments to the Law on Energy in 2017 facilitated the liberalization of Armenia’s electricity market, allowing more competition and enabling consumers to purchase electricity from different suppliers, including those using renewable energy sources like solar.
• Large wholesale consumers can now purchase electricity from outside Armenia, which includes solar energy generation.

Popularization of Autonomous Power Producers:

• Armenia’s efforts to promote autonomous power generation were marked by the ratification of H0-262-N on December 21, 2017. This law revised the net metering limit from 150 kWh to 500 kWh for legal entities.
• The revised legislation allows major energy consumers to function as autonomous power generators, producing renewable energy to meet their own needs. This is backed by the RA Law on Energy Efficiency and Renewable Energy, which includes provisions for non-provisional compensation for electricity supplied during energy transit, facilitating a more efficient energy transfer process.

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Development of Solar Technologies in Non-Gasified Communities:

• In August 2017, a joint public-private “Energy Efficient” loan program was launched to promote solar technologies in non-gasified communities. The program targeted 38,242 families across 282 non-gasified communities, providing access to financial tools for efficient energy consumption.
• By February 2019, the initiative had reached 126 communities, with the installation of 2083 solar water heaters and 71 PV systems. As of July 1, 2019, 1145 autonomous energy producers were connected to Armenia’s energy network, representing a total capacity of 17 MW.
• Additionally, 1654 solar water heaters were installed in non-gasified areas by December 2018, further advancing energy independence in rural regions.

Initiative for Solar in Armenia: European Union Partnership and Renewable Energy Development

• As part of Armenia’s efforts to boost its renewable energy sector, the country has taken significant steps in collaboration with the European Union. In a resolution adopted on March 15, the European Parliament urged Armenian authorities to accelerate the development of renewable energy, improve energy efficiency, and diversify energy sources.
• This call comes as Armenia remains highly dependent on natural gas imports, with over 80% of its gas coming from Russia, alongside bilateral cooperation with Iran on energy exchange.
• Armenia’s commitment to renewable energy dates back to 2017 when it signed the Comprehensive and Enhanced Partnership Agreement (CEPA) with the EU.
• Through CEPA, Armenia pledged to strengthen its energy security by promoting renewable energy sources. These developments have primarily focused on small-scale hydroelectric power and solar energy, while other renewable sources like wind are not yet economically viable.

Fund for Renewable Energy and Energy Efficiency of Armenia:

• This state entity supports the development of solar energy projects by examining potential opportunities and facilitating investments in solar, wind, and geothermal energy projects.

Energy Sector Development Program (2021–2041):

• The 20-year program adopted in January 2021 aims to build a transparent, diversified, and energy-efficient system for sustainable development.
• The program includes plans to identify new power generation facilities, which likely incorporates solar energy as a growing part of the energy mix.

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Current Projects:

Floating PV Project

• Location: Lake Yerevan, Yerevan, Armenia
• Capacity: 150 kW
• Details: This is Armenia’s first floating solar project, developed by France’s Nepsen and the Armenian Renewable Resources and Energy Efficiency Fund. The project is a pilot designed to pave the way for future floating PV plants in the country. It is seen as a significant milestone in the growth of renewable energy in Armenia.

Masrik-1

• Location: Near the village of Mets Masrik, Vardenis, Gegharkunik region
• Capacity: 55 MW
• Details: Masrik-1 will generate 110 GWh annually. Announced in 2017, its construction has faced delays due to COVID-19 and the 2020 Artsakh War. It is expected to be completed with a total investment of $60 million. The project is being developed by a Spanish-Dutch consortium owned by Abdul Latif Jameel.

Future Projects:

Ayg-1

• Location: Near the town of Talin, Aragatsotn region
• Capacity: 200 MW
• Details: Ayg-1 will generate 320 GWh annually. Developed by Masdar, an Emirati renewables company, with an investment of $174 million. Masdar owns 85% of the project, and the Armenian government holds 15% through the Armenian National Interests Fund (ANIF). The project is expected to be completed by 2025.

Ayg-2

• Location: Near Yeghvard, Kotayk region, and Nor Yedesia, Aragatsotn region
• Capacity: 200 MW
• Details: This project, expected to include energy storage, has not yet entered the planning phase. An estimated $150 million investment is planned, with a tentative completion date of December 2024, though delays are anticipated.

Five Utility-Scale Solar Farms

• Location: Various
• Capacity: 120 MW combined
• Details: These farms will generate 192 GWh annually and are scheduled for completion by December 2024.

Small Solar Farms (Below 5 MW)

• Location: Various
• Capacity: 315 MW combined
• Details: These farms aim to generate 326 GWh annually by 2029, with a targeted investment of $340 million.

Company Name: LA Solar

Website: lasolarfactory.com

Location: Armenia

Services and Products:

• Products: Solar modules
• Services: Production of solar panels, quality control, and international distribution
• Technology: Utilizes the Swiss Meyer Burger system for manufacturing solar panels

Company Name: OHM Energy

Website: ohmenergy.am

Location: Armenia

Services and Products:

Products:

• Solar modules
• Solar inverters
• Connectors
• Electrical heaters

Services:

• Installation and maintenance of solar power systems
• Energy cost reduction through advanced solar solutions
• Consulting and assistance in adopting “Green Energy” with minimal initial investment

Company Name: Volta U LLC

Website: volta.am

Location: Kotayq Province, Verin Ptghni 45, Armenia

Services and Products:

Services:

• Design and installation of solar plants
• Design and installation of heating systems
• Monitoring of solar plants

Products:

• Solar plants
• Heating systems