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Akbar Novruz

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As the world intensifies its efforts to combat climate change, the shift toward renewable energy has gained momentum. While fossil fuels remain dominant, solar and wind power are becoming increasingly popular despite their high initial costs. Countries prioritizing environmental sustainability are integrating these sources into their energy infrastructure, with Azerbaijan emerging as a frontrunner in this transition.

Azerbaijan’s renewable energy roadmap

Azerbaijan has laid out a clear strategy for expanding its renewable energy sector, marked by ambitious projects that strengthen its commitment to sustainability. The country’s investment in solar energy has already yielded significant results, with large-scale facilities like the Gobustan solar power plant—the largest in the Caucasus—boosting electricity production. Since its launch in October 2023, Gobustan has been generating at least 500 million kilowatt-hours annually, supplying power to approximately 110,000 households and preventing 200,000 tons of carbon dioxide emissions.

A key focus of Azerbaijan’s energy agenda is Garabagh and East Zangezur, regions with immense potential for renewable energy production. The construction of the Shafag solar power plant, with a projected capacity of 240 megawatts, is a pivotal step. Once operational, it is expected to generate up to 700 million kilowatt-hours annually, reducing gas consumption by 150 million cubic meters and cutting carbon emissions by 300,000 tons.

Rooftop solar panels: a game-changer for households

Beyond large-scale projects, Azerbaijan has introduced measures to encourage individual adoption of renewable energy. Under the active consumer support mechanism approved in September 2023, households and businesses can install rooftop solar panels and connect them to the national grid. Citizens who generate surplus energy can sell it back to the grid, turning solar power into a source of income. In Azerbaijan, several initiatives are being implemented to promote the use of renewable energy. For instance, the Ministry of Energy organized an informative event for representatives of local companies in the renewable energy sector. The focus of the event was on supporting small-scale green energy production, specifically targeting active consumers.

The presentations offered comprehensive information on installing solar panels, wind turbines, and other green energy devices. They also covered the transmission of excess energy produced to the grid, as well as the associated tariffs, compensation, and settlement mechanisms.

Additionally, efforts are underway to install solar panels in homes located in the liberated areas of Azerbaijan, with panels being installed in every newly constructed house.

If individuals prefer to use solar panels independently—storing energy in batteries without connecting to the grid—no special permits are required. However, those integrating their systems with the central electricity network must ensure their installation aligns with the power capacity of their property. Households with an average electricity demand can typically meet their needs with a system ranging from 2 to 5 kilowatts.

Global models: how rooftop solar has transformed energy markets

Many countries have successfully incorporated rooftop solar panels into their energy policies, demonstrating the economic and environmental benefits of decentralized power generation.

• Germany has been a pioneer, with feed-in tariffs and government incentives driving widespread adoption.
• Australia boasts one of the highest per capita rooftop solar installation rates, leveraging its abundant sunlight.
• The United States has promoted solar panel adoption, particularly in states like California, Texas, and Arizona.
• China, the world’s largest solar energy producer, has implemented urban rooftop solar initiatives on a large scale.
• India has incentivized rooftop solar through subsidies and net metering, promoting rapid expansion.
• The Netherlands and Japan have integrated rooftop solar into their energy transition plans, with strong government backing.
• The UAE, particularly Dubai and Abu Dhabi, has introduced programs to encourage solar panel use in residential and commercial properties.

These examples highlight the potential of rooftop solar panels to reshape energy consumption patterns, reduce dependence on fossil fuels, and contribute to environmental sustainability.

The future of solar energy in Azerbaijan

Azerbaijan’s efforts to expand its renewable energy sector position it as a leader in the region’s green transition. With large-scale solar power plants and incentives for individual consumers, the country is making significant strides toward energy diversification. If implemented effectively, rooftop solar panel adoption could not only help meet national energy demands but also create new economic opportunities for citizens.

As global trends indicate, a well-structured incentive system can accelerate the shift to decentralized solar energy. Azerbaijan’s active consumer support mechanism provides a foundation for this transformation, offering individuals the chance to both contribute to and benefit from the country’s growing renewable energy sector. The success of these initiatives will depend on continued investment, regulatory support, and public awareness—ensuring that Azerbaijan remains at the forefront of the renewable energy revolution.