The solar energy market in Bosnia and Herzegovina’s Republika Srpska is set for regulatory changes as the government prepares to revise its renewable energy subsidy framework.
According to local reports, the proposed amendment to the Renewable Energy Law aims to close loopholes in the current support system and prevent companies from improperly accessing incentives through project splitting.
Since the subsidy scheme was introduced in 2022, small-scale solar projects have benefited from simplified approval procedures. Projects without the need for concession permits could be approved directly by local authorities, making it easier for investors to develop small photovoltaic plants.
However, authorities found that some companies were dividing large solar projects into dozens of smaller installations — sometimes 20 to 50 separate plants — to avoid concession fees while still receiving guaranteed purchase prices for up to 15 years.
Under the proposed changes, solar plants with a capacity of 150kW or below will need to maintain a certain distance from each other to qualify for government-backed electricity purchase incentives.
The amendment will also remove the current subsidy reservation mechanism. Only completed solar projects that meet all requirements will be eligible to apply for support.
The government stated that the reform is designed to prevent abuse of the subsidy system, improve market fairness, and ensure more sustainable development of the renewable energy sector.
The proposal is expected to be submitted to the Republika Srpska National Assembly for review in mid-July 2025.
Gamko energy, Worldwide Energy and Manufacturer, is a professional solar module manufacturer with a 10-year experience in production and quality control since 2008.