Reduced use of fossil fuel in thermal power plants and reduced radioactive waste (also addressing the high cost of its treatment) thanks to greater renewable energy application overall.

Enhanced energy security, increased share of renewable energy, and reduced environmental footprint of Armenia's energy sector through the solar installations.

Industrialization of solar power may increase the average electricity tariff since renewable energy has higher end tariffs, making it unaffordable for consumers.

Toxic materials and hazardous products are used for manufacturing solar systems, which can negatively impact on the environment when the installations are dismantled and not recycled responsibly.

Transportation and installation of solar systems can created significant levels of greenhouse gases.

High capital costs for solar installations, and challenges in accessing financing, may limit the realisation of large installations, which will minimise the positive effects of the energy source.

Procedural difficulties related to allocation of land for building solar power stations may limit the realisation of solar installations.

Possible changes of the currently beneficial tariff for solar energy may discourage investors, leading to the non-realisation of installations.

Promote solar energy production to increase income and resilience of SMEs and households, reduce use of fossil fuel and the country's environmental footprint, and improve its energy security.

Promote solar energy production to increase income and resilience of SMEs and households, reduce use of fossil fuel and the country's environmental footprint, and improve its energy security.

To enhance the capacities in renewable energy, the Government plans to support the creation of 60 MWT capacity in the next 2 years, which is in addition to the 55 MWt PV station already set up (2).

The Government is in the process of liberalising the energy sector of Armenia, which will be completed by 2022. Solar power stations will support energy liberalization goals (29).

Financial incentives: Armenia offers various financial instruments, such as green leasing, that offer below market interest rates for renewable energy production. Beneficial tariffs are applied for renewable energy producers (2, 7, 8).

Fiscal incentives: Armenia extends tax privileges for importation of materials and equipment for the renewable energy industry, which also allows for extended VAT payment times for imported products (10).

Energy tariffs are set by the PSR Committee and beneficial tariffs are applied for electricity from renewables (solar, wind and biofuel). The tariff for solar energy is applied since 2017 (7, 27).

The Law on Renewable Energy and Energy Efficiency increased the net metering limit for legal entities from 150 kWh to 500 kWh, to allow large energy consumers to execute functions of autonomous power generators to meet their own needs. The Law also improved the energy transit timetable (9).

Feed-in tariffs are applied in solar energy sector, which means that households are allowed to sell the excess electricity to electric networks (9, 27).

Industrial solar power stations with power exceeding 500 kWt are subject to licensing by the Public Services Regulation Committee (30).

Construction of a solar PV station is permitted on the land categorized in the land cadaster as “objects of energy, transport, communication and utility infrastructures” (31).

SMEs setting up small to medium scale solar installations, such as Shtigen, Arpi and Optimum Energy. Large solar installations include Talin 2, Masrik 1 and 2, Gagarin, Dashtadem, Merdzavan with a planned 109 mWt power. PV panel producers such as Solaron (24, 25).

Public Services Regulation Committee, Ministry of Territorial Administration and Infrastructure, Ministry of Environment.

Several international financial institutions and multilateral banks support the promotion of renewable energy, such as the World Bank, European Bank for Reconstruction and Development (EBRD) and the Asian Development Bank (ABD).

Renewable Energy Producers’ Association Union of Legal Entities.

Active partnerships, such as Vayots Sun, which is the largest solar PV station in the Vayots Dzor and is supported by international donors and financial institutions.