Bosnia and Herzegovina (BiH) has significant solar energy potential, with only about 400 MW of its potential utilized so far. The main barriers to further development are issues with grid connection and a lack of incentive programs for households. Although BiH has a strong solar capacity, with panels operating 1,300 to 1,400 hours annually—20% more than in Germany—most of the potential remains untapped.
Currently, 400 MW of solar capacity is operational, while another 3,000 MW are proposed by investors but are on hold due to land issues and grid connection challenges. The legal framework for residential solar installations is unattractive to investors, as household electricity prices are below market rates, making solar projects financially unviable for homeowners without commercial or industrial applications.
Solar power in BiH makes up about 10% of the total installed capacity, but due to limited operational hours, it contributes a smaller share of the national energy production. By the end of 2025, at least 100 MW of additional solar capacity is expected to be added, though grid connection issues may hinder faster growth.
The Herzegovina region, with over 1,400 sunny hours per year, is the country’s prime area for solar energy, while other regions have between 1,100 and 1,300 sunny hours. The lack of state-backed subsidies for rooftop solar installations makes them financially unattractive to households, though regulations are being developed to allow prosumers to sell surplus electricity. There is growing interest in solar plants for self-consumption by businesses and industries, driven by rising electricity prices.
