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Surge in solar panel installations in Serbia amid subsidies and tax cuts

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The number of electricity producers using solar panels in Serbia has soared to 3,100, driven by significant interest spurred by subsidies, tax cuts, and fees reductions. Efforts are also underway to find solutions for faster network connections.

Currently, 2,200 households in Serbia produce electricity from solar panels, with the remainder comprising companies, factories, schools, other institutions, and several monasteries. By acquiring the status of buyer-producer, these entities have achieved energy independence, reduced electricity bills, and contributed to the country’s green transition.

“In a year and a half, the number of buyer-producers increased sevenfold, while the installed capacity grew 8.5 times. Households can now install solar power plants with a capacity of up to 10.8 kilowatts, and other customers up to 150 kilowatts,” explained Maja Vukadinović, Assistant Minister of Energy.

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Cost-effective investments

Analyses indicate that the average household’s electricity needs can be met with a 6-kilowatt installation, costing approximately 7,000 euros. Government subsidies cover half of this cost.

Excess electricity generated can be supplied back to the power system, but experts advise that installations should be proportionate to consumption to ensure cost-effectiveness.

“The buyer-producer should assess their annual consumption and select a photovoltaic system that matches this usage,” stated Dr. Darko Šošić, professor at the Faculty of Electrical Engineering in Belgrade.

Ivana Đorđević, Director of the Sector for Managing Buyer-Producers at EPS, emphasized that overestimating the needed capacity can prolong the payback period for the investment.

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Streamlining connections and enhancing quality control

Currently, 2,100 applicants are waiting to be connected, with households and four housing associations making up a quarter of these. To address this backlog, Elektrodistribucija advocates for greater on-ground work control and proposes the introduction of contractor certification.

“Contractor certification should be implemented. We have supported this from the beginning, as a certified contractor ensures the quality of materials, equipment, and execution of works,” said Predrag Matić, Director of the Directorate for Planning and Investments at Elektrodistribucija.

The Ministry of Energy has formed a team to develop new solutions aimed at simplifying procedures and accelerating the connection process for buyer-producers of electricity to the power grid.

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