Montenegro could follow the example of Croatia and abolish the VAT on solar panels, as the Governments in the region increasingly acknowledge the importance of rooftop installations on residential and commercial buildings as a measure to combat the energy crisis.
Montenegrin Ministry of Economic Development said that it will launch a new set of measures to mitigate the impact of the energy crisis in the coming months. According to Finance Minister Aleksandar Damjanovic, one of the measure will be zero VAT on solar panels.
The abolition of VAT on solar panels is aimed at a faster transition to renewable energy sources. It will also improve the security of supply in the long -term and protect the citizens and the economy in the vent of market disruptions or low water levels in hydropower reservoirs.
Currently, VAT on solar panels amounts to 21 %.
In May, Montenegrin state-owned power utility EPCG has signed two contracts as part of the implementation of Solari 3000+ and Solari 500+ projects. The contract for photovoltaic modules and substructure of the photovoltaic system was signed with the bidder Novi Volvox, which submitted the best offer of 12.44 million euros, excluding VAT. Contract for Inverters and smart electricity meters was signed with the bidder Comtrade Distribution, which submitted the most favorable bid of 4.128 million euros, excluding VAT.
With the realization of this project, EPCG will install 30 MW in photovoltaic systems for the production of green electricity. The complete public procurement process began at the end of September 2021, so the company, in just 9 months, managed to conduct public procurement procedures and conclude the relevant contracts.
The projects will enable 3,000 households to install solar panels of the roof of residential buildings and become prosumers, as well as 500 small enterprises.
