PVTIME – The Republic of Srpska is set to tighten regulatory controls on state subsidies for small-scale, ground-mounted photovoltaic systems through proposed amendments to its Renewable Energy Law. The legislative reforms, published on 12 July, intend to close systemic policy gaps and prevent irregular subsidy claims arising from non-compliant project structuring within the domestic solar sector.
Current renewable energy provisions, implemented in 2022, delegate approval authority for small solar developments to local administrative bodies, thereby removing the need for formal franchise licensing. However, ongoing regulatory monitoring has revealed a widespread industry practice of segmenting single large-scale solar schemes into 20–50 smaller installations. This approach allows developers to bypass statutory franchise charges and obtain the 15-year fixed feed-in tariff benefits reserved for eligible small-scale assets.
The updated legislative provisions introduce two key regulatory adjustments. First, minimum spacing standards will apply to all qualifying photovoltaic facilities with a capacity not exceeding 150kW as a prerequisite for accessing state-guaranteed power purchase arrangements. Preliminary subsidy reservation mechanisms will also be discontinued, and subsidy eligibility will be limited solely to fully constructed, regulation-compliant solar assets. The draft law is scheduled to be reviewed by the National Assembly of the Republic of Srpska on 14 July. Authorities have confirmed that the reforms target systemic subsidy misuse and will support transparent and equitable growth across the national renewable energy marketplace.
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