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Solar Panel Subsidy in Uzbekistan: Payback & Government Support

Homeowners get 1,000 so'm/kWh feed-in plus subsidies up to 18.75M so'm. A 10kW system pays back in 2–3 years — see the open math.

BusinessJuly 14, 202510 min read9,685 views
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Solar Panel Subsidy in Uzbekistan: Payback and Government Support

Since April 2023, one number hasn't moved: for every surplus kilowatt-hour (kWh) a homeowner feeds back into the grid, the state pays 1,000 so'm. The electricity tariff, meanwhile, has doubled in that time — as of June 1, 2026, a household using 501–1,000 kWh a month pays 1,100 so'm/kWh.

The whole calculation lives between those two numbers. The main benefit of a solar system in Uzbekistan today isn't selling your surplus power — it's not having to buy electricity from the grid in the first place.

Below is what actually applies to you in 2026, what a system costs, and when it pays for itself. The method is open: plug in your own tariff and you can rerun the numbers yourself.

What Changed in a Year

  • Property tax break. Before — full exemption. Now — tax reduced, with an upper cap: for individuals, up to 2 BHM off property tax and up to 1 BHM off land tax (Law No. O'RQ-1014, Dec 24, 2024).

  • Electricity tariff, Group II (legal entities). Before — 1,000 so'm/kWh. Now — 1,100 so'm/kWh (Cabinet of Ministers Resolution No. 243, May 15, 2026).

  • Homeowner feed-in subsidy. Before — 1,000 so'm/kWh. Now — 1,000 so'm/kWh — unchanged.

  • New measures for households. Before — none. Now — up to 18.75 million so'm in subsidies + up to 170 million so'm "Green Renovation" (Yashil renovatsiya) mortgage (from July 1, 2025).

  • "Solar House" (Quyoshli uy) program budget. 100 billion so'm planned for 2026; payouts already reached 330.8 billion so'm in the first six months (why, below).

The first row matters most. You'll still find articles online claiming "systems under 100 kW get a 10-year property tax exemption." Since 2025 that's wrong: the benefit was folded into the Tax Code and now reduces the tax up to a fixed cap — it no longer waives it entirely. The term itself is unchanged: 3 years, or 10 years if you add a battery with at least 25% of your panels' capacity. BHM stands for "base calculation value" (baza hisoblash miqdori) — an official unit Uzbekistan uses each year to index taxes, fines and social payments. (Based on the subsidy figures further down, 1 BHM works out to 412,000 so'm in 2026.)

For Homeowners: Four Real Funding Sources

1. "Solar House" subsidy — 1,000 so'm/kWh. For individuals, on stations up to 50 kW. There's no separate application: the tax authority calculates it automatically from your two-way (net) meter reading, and the payment lands via the Soliq app — the State Tax Committee's mobile app — by the 25th of the following month. It doesn't count as taxable income (Presidential Resolution PQ-57, Feb 16, 2023).

2. Energy-efficiency subsidy — up to 18,750,000 so'm. For solar panels, solar water heaters and heat pumps, against a "Green Project" certificate; in effect since July 1, 2025 (Presidential Decree, March 27, 2025). Articles written even a year earlier won't mention this one — it's newer than that.

3. "Green Renovation" mortgage — up to 170 million so'm, over up to 10 years. The state covers the part of your annual interest rate above 19%, capped at 4 percentage points. Example: if your rate is 24%, the government covers 4 points and you effectively pay 20%.

4. Targeted package for registered low-income families — up to 100 BHM (41,200,000 so'm) toward a 7–10 kW system, from February 1, 2026, plus a preferential loan of up to 75 BHM (30,900,000 so'm) on top. Worth being upfront about: this category is narrow — it's for families on the state's low-income registry. A typical homeowner shouldn't budget for this figure.

There's also a 3-year, 0%-installment scheme for locally manufactured equipment, listed as a state measure, but its status for 2026 hasn't been separately confirmed.

For Small Business: What Your Surplus Power Is Worth

A different mechanism applies to businesses and individuals with up to 1 MW of capacity. The Regional Electric Networks operator buys back surplus power at 80% of the Group II tariff — the rate in force today is 880 so'm/kWh (it was 800 so'm before June 1), with a buyback guarantee of at least 10 years (Presidential Decree PF-220, Sept 9, 2022). That turns surplus generation into a recurring income line; we've rounded up sources like this in our article on passive income in Uzbekistan.

One caveat: the number to watch isn't 880 so'm, it's the direction of travel. Since October 2025, there's been a draft proposal under discussion to lower that 80% share — a separate question from today's 880 so'm rate, but relevant to what you'll earn later. As of August 6, 2026, no final document has been approved, and the press is circulating figures that don't agree with each other, so we won't quote a new rate. If you're building a business case, put this down as a risk line: today's 880 so'm is the current rate, not a guaranteed floor.

For legal entities there's a tax angle too: property and land tax benefits apply to renewable-generation equipment, alongside profit-tax benefits on income from electricity sold back to the grid.

What a System Costs

  • 5 kW — 15–24.9 million so'm

  • 10 kW — 32.8–44.8 million so'm

  • 20 kW — 72–80 million so'm

This isn't an official price list — it's a cross-section of marketplace and installer listings from July–August 2026; for the same capacity, prices vary by up to 1.7x between vendors. Ask for a firm commercial quote before you buy.

When Does It Pay Off? The Math, Laid Bare

Assumptions first. Change them, and the answer changes too:

  • Capacity — 10 kW, system price 39 million so'm (the midpoint of the 33–45 million range).

  • Specific yield — 1,500 kWh per year per installed kW: a typical regional engineering estimate, not an official figure.

  • Household consumption — 8,000 kWh/year, or roughly 667 kWh/month, which puts you in the 501–1,000 kWh band at the 1,100 so'm/kWh tariff.

  • Loan interest, maintenance costs, and annual panel degradation are not factored in.

Now, where the money goes:

10 kW system, one year

  • Generates — 15,000 kWh

    • → the household uses 8,000 kWh itself → not bought from the grid → saves 8.8 million so'm (8,000 × 1,100)

    • 7,000 kWh goes back to the grid → subsidy at 1,000 so'm/kWh → 7 million so'm

  • Total annual benefit — 15.8 million so'm

  • 39 million ÷ 15.8 million = about 2.5 years

At a system price of 33 million so'm, that's 2.1 years; at 45 million, 2.8 years. Under these assumptions, the range comes out to 2–3 years.

Notice that the larger share of the benefit comes from savings, not the subsidy. If the tariff rises further, your savings grow with it — the subsidy has sat still since 2023.

There's no reason to keep repeating the "4–6 years" figure that circulates online — there's no visible methodology behind it. Rerun the four lines above with your own tariff, your own consumption, and the actual price you're quoted. The answer will be yours.

How Fast the Program Has Grown

  • 2024 — 10,826 recipients, 12.18 billion so'm.

  • 2025 — 45,381 recipients, 209.2 billion so'm.

  • First half of 2026 — 68,600 recipients, 330.8 billion so'm.

In six months, the program paid out more than in the whole of the previous year. The 2026 budget line was set at 100 billion so'm. The result showed: payments fell behind in April–May, and the backlog wasn't cleared until July, when 156.1 billion so'm went out to 60,200 people. Better to plan for this subsidy as a reimbursement that can arrive late, not as a monthly paycheck.

At industry scale the picture looks different: for 2026, Uzbekistan's fuel-and-energy sector counts 133 projects and a $51.4 billion portfolio, with 6,770 MW of new capacity planned by year-end — 2,800 MW of it solar. Across the wider picture, solar and wind combined passed 5.5 GW (May 2026, at an energy forum). Sources don't agree on a single figure for solar alone in 2026, so we won't quote one.

Getting Connected: Deadlines and Real-World Friction

For systems up to 20 kW, the grid company must issue technical specifications — or a reasoned refusal — within 10 business days. For 20–500 kW, the system operator must be notified within 3 business days. Both deadlines come from Regulation No. 610 (July 22, 2019).

Equipment requirements are strict: only panels, inverters and batteries from the BNEF Tier-1 list — Bloomberg New Energy Finance's list of financially bankable manufacturers — can be imported; that rule has applied since January 1, 2025. Photovoltaic cell class labeling is also mandatory, a requirement in force since March 1, 2024. We've covered the technical side in our article on solar panel installation requirements.

In autumn 2024, business owners complained about being pressured into installing panels; the Ministry of Energy publicly condemned the practice. In July 2026 the minister told business owners plainly: "if your paperwork is in order, demand your connection" — which tells you the friction is still there. Put your request in writing, and keep the correspondence.

Protecting Your Investment: When Panels Can Be Insured

The condition here is explicit: the minimum insured sum is 20 million so'm. That puts a 5 kW system (15–25 million so'm) right on the edge, while 10 kW and above clears it easily. Anything cheaper than that doesn't qualify for the product.

The rate is flat — 1.5% of the insured sum, no adjustment coefficients. Panels worth 20 million so'm cost 300,000 so'm a year to insure; 40 million so'm worth costs 600,000 so'm. The upper limit is 100 million so'm.

What's covered, and what isn't:

  • The insured object is the panels themselves. Inverters, batteries, cabling and installation work fall outside the object.

  • Only panels professionally installed on the roof or wall of a house or production building qualify. Ground-mounted panels are not accepted under this product — they're reviewed only case by case, as an individual project. Worth knowing before you pick a site.

  • 12 perils are covered, each defined by a precise threshold — these describe severe natural events, not ordinary rain or wind: wind from 20 m/s, snowfall of 20 cm or more within 12 hours, hail from 10 mm, earthquakes of magnitude 5.0 or higher on the Richter scale, flooding, lightning strikes, landslides, fire, explosion, unlawful acts by third parties, impact from ground vehicles, and aircraft crashes.

  • Time deductible — 7 calendar days: coverage starts seven days after the premium is paid.

  • Partial damage is reimbursed based on replacement cost; total loss pays out the full insured sum.

  • Payout follows within 15 banking days of signing the Loss Report. If an event happens, notify the insurer within 72 hours and file a written claim within 5 business days.

  • Not covered: normal wear and corrosion, hidden installation defects, repairs by a non-specialist, and skipping scheduled technical inspections. At least two external inspections a year are on you.

  • To apply, you'll need the building's cadastral passport or another document proving ownership.

EUROASIA lets you insure your solar panels online, with the policy issued electronically.

Before You Install: Five Lines

  1. Confirm your equipment is on the BNEF Tier-1 list.

  2. Hand installation to specialists who do this professionally — that's what the insurance requires. Uzbekistan doesn't issue a separate state certificate to solar installers, so judge by the company's track record and its warranty commitments.

  3. Request technical specifications in writing — for systems up to 20 kW, the response deadline is 10 business days.

  4. Calculate your own payback period from your own tariff and your own consumption; don't take a ready-made number on faith.

  5. If your panels are worth more than 20 million so'm, factor insurance cost into your plan.

Read. Calculate. Then get insured.

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