QAZAQ GREEN. Azerbaijan's legal framework for the development of renewable energy sources (RES) has created incentives for the country's citizens to independently use solar panels or other RES sources to generate "green" energy, the surplus of which can go to the power grid and provide income to the producer of such electricity, the head of the project management department of the State Agency for Renewable Energy Sources (AREA) under the Ministry of Energy of Azerbaijan, Jabrail Aliyev told Vergiler (a local newspaper), Trend reports.

"Individuals and legal entities can use RES to consume up to 150 kW of electricity while adhering to architectural and construction standards, according to the Rules for the Implementation of the Active Consumer Support Mechanism approved by Decree No. 346 of the Cabinet of Ministers of the Republic of Azerbaijan on September 28, 2023. The same document also states that it is permissible to manufacture production for sale to the electricity grid," Aliyev noted.

He added that the maximum power limit that active users can connect to the grid is set by the requirements outlined in the power company's technical conditions.

"Individuals or legal companies should apply to the energy supplier and receive the "Technical Condition of an Active Consumer" paper. As an active consumer, a citizen can install solar panels capable of producing up to 150 kW or other renewable energy equipment. In general, Section 2 of these guidelines fully incorporates all steps of the system of active consumer assistance," Aliyev emphasized.

He pointed out that "if the monthly energy produced by a person exceeds his consumption, the amount of energy he transfers to the grid is accumulated on his active consumer balance and can be used for compensation in subsequent months."

"Compensation is formalized at the end of the reporting year. And if the balance of the active consumer is positive at the end of the reporting year (the period from January 1 to December 31 of the calendar year), the energy supply company pays the cost of the residual electricity through the bank account of the active consumer at the appropriate wholesale rate for the current reporting period," the AREA representative said.

Meanwhile, the cost of electricity transferred to the grid by individuals or legal entities using the active consumer support mechanism shall be paid at the current wholesale rate, i.e., 6.6 qepik per one kWh.

"Income from the transmission of electricity to the power grid is exempt from income tax. This creates additional incentives for citizens to use environmentally friendly technologies, switch to green energy, and generate income," he added.