AERA: Three key areas needed for rooftop solar development in Azerbaijan

In Azerbaijan, regulation is no longer the main barrier to rooftop solar energy, Elmar Gulaliyev, Head of the Energy Sector Liberalization Department at Azerbaijan Energy Regulatory Agency (AERA) under the Ministry of Energy, stated during panel discussions at the International Caspian Oil and Gas Exhibition in Baku, Report informs.

Gulaliyev mentioned that the challenge now is to move from a framework that merely permits rooftop solar to one that actively accelerates it:

"There are three main areas where further progress is needed. First, continuous optimization of administrative processes, since every additional approval or technical requirement can discourage households or businesses from investing in rooftop solar. Second, economic issues – consumers must clearly see the financial benefits of their investments. International experience shows that stable compensation mechanisms, whether through net metering, settlement, or other market-based regulations, are crucial. Third, grid readiness – as rooftop solar penetration increases, the distribution network must become more flexible and digitalized. Smart meters, advanced management, and new grid management approaches are essential."

The official emphasized that successful penetration of rooftop solar depends not only on energy policy but also on consumer engagement.

"Consumers need to understand what is required, what incentives exist, what steps they must take, and which procedures must be managed to realize this potential. If we look at countries that have advanced rooftop solar, such as Türkiye or Germany, we see that installations accelerate when regulatory simplicity, economic incentives, and grid modernization progress together," he added.