The Prime Minister of North Macedonia announced that the Ministry of Economy of North Macedonia (“Ministry”) is currently working on a law which will ease the procedure for installation of photovoltaics on the roofs of households and industrial objects. This demonstrates North Macedonia’s commitment to the country’s transition to renewable energy sources.
Currently, households and small consumers can build a photovoltaic plant for production of electricity for their own consumption, and any extra produced electricity can be handed over to the electricity distribution network, provided that certain conditions are met. Small consumers are defined as entities which have less than 50 employees on average in the past two years, with less than two million euros of total annual income.
The expected changes in the legislation envision a liberalised approach for every household and industrial object to install photovoltaics on their roofs, and furthermore sell the produced electricity to the electricity distributor.
Additionally, it is expected that the changes in legislation will increase the installed capacity of the photovoltaic plant to 6 kW as opposed to the currently prescribed 4 kW for households. For small consumers, the installed capacity will be increased to 40 kW, as opposed to the currently prescribed 20 kW.
Furthermore, the Ministry is working on a rulebook which will enable electricity distributors to take over the produced electricity from households at a price at which the distributor takes over from the state electricity producer.
In line with the above, and for the purposes of properly regulating the payment of value added tax in situations where electricity is exchanged between households and electricity distributers, a tax representative will be introduced with a bylaw drafted by the Ministry of Finance of North Macedonia.
Further development of this matter and additional information are expected to be announced in the near future.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
