As of 2023, Montenegro has installed solar power capacity, with a total of 42 MW (IRENA).⁶

Montenegro aims to generate 50% of its electricity from renewable energy sources by 2030. To achieve this target, the country is undertaking the following initiatives:⁷⁸¹⁴

• Memorandum Signed for 250 MW of Solar Projects with Energy Storage (November 2023)
• Partnership Signed for 87.5 MW Solar Park in Western Montenegro (August 2024)
• Montenegro plans to build 30 large renewable power plants, primarily solar projects, with a total capacity of 4,000 MW.

The major source of electricity generation is coal and hydro in Montenegro.⁹

• Specific data on the levelized cost of electricity (LCOE) for hydro and coal power generation in Montenegro is limited.
• The cost of generating electricity from hydropower in Montenegro is relatively low compared to other European countries, averaging around €0.09 per kilowatt-hour.

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Montenegro typically has stable electricity availability, but outages can occur due to factors like high consumption during extreme weather, as highlighted in recent events. For example:¹⁰¹¹

• During normal operations: Electricity is generally available 24/7, supported by a mix of hydropower, thermal power, and interconnected systems.
• Recent blackouts: A major outage on June 22, 2024, disrupted electricity for several hours due to surging demand caused by extreme heat (40°C+) and technical issues in regional power grids.

By November 2024, EPCG Solar Gradnja had successfully installed photovoltaic systems on 6,500 rooftops across Montenegro.¹²

Projected installations ¹³

The SOLARI 3000+ and 500+ Project in Montenegro aims to install solar power systems on 3,000 homes and 500 businesses

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Installed Solar Farms

• Montenegro has one ground-mounted solar power plant

Projected Solar Farms

• Montenegro plans to build 30 large renewable power plants, primarily solar projects

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Current Situation:

• Montenegro has made significant strides in integrating renewable energy, with a strong focus on off-grid solar solutions.
• As of now, the country has deployed solar photovoltaic (PV) systems primarily in rural and mountainous areas, where grid access is limited or unavailable.
• This includes solar installations in un-electrified households, particularly in remote regions that are not connected to the national grid.
• The Ministry of Economy in Montenegro has actively supported the development of off-grid solar energy, reflecting a growing awareness of its potential.
• The government’s efforts to promote off-grid solar include the continuation of PV system deployment for isolated households, ensuring that renewable energy reaches even the most remote locations. This phase of expansion is crucial for providing sustainable electricity to areas where conventional grid infrastructure is not feasible.

Future Prospects:

• Looking ahead, Montenegro’s off-grid solar potential is poised for significant growth. The government has been focusing on expanding its solar capabilities, especially through decentralized, off-grid systems that can power remote homes and businesses.
• This strategy is part of a broader effort to meet the country’s renewable energy targets, which include reaching 33% of energy production from renewable sources.
• Additionally, Montenegro plans to build large-scale renewable power plants, with an emphasis on solar projects. These initiatives are likely to boost the role of solar energy in both on-grid and off-grid applications, driving further investments in off-grid solutions for rural and mountainous communities.
• The third phase of solar PV deployment, which focuses on un-electrified households in secluded areas, is set to continue. This phase will significantly increase the number of people benefiting from off-grid solar systems, furthering the country’s energy independence and contributing to its climate goals.

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Current On-Grid Solar Market Demand in Montenegro:

• Montenegro’s on-grid solar market is still in its early development stages, with a primary reliance on hydropower and thermal power plants for electricity generation. However, the country is making strides toward solar adoption through various initiatives.
• One notable program is Solari 5000+, launched by Elektroprivreda Crne Gore (EPCG), Montenegro’s state utility. This €70 million program aims to deploy 70 MW of rooftop solar capacity by providing a 20% subsidy for qualifying residential and business consumers. The program targets 5,000 rooftop PV projects and is part of a larger effort to increase solar adoption across the country.
• The Solari 5000+ program follows the success of earlier schemes, such as Solari 3000+ and Solari 500+, which garnered significant interest, with over 14,000 applications received. The successful deployment of these earlier programs has demonstrated the growing consumer interest in solar energy, especially as the country faces rising energy demands and environmental concerns.
• By September 2022, EPCG had already installed nearly 2 MW of solar capacity, underlining the potential for future growth.
• Despite these positive developments, the market remains limited by regulatory barriers, political instability, and the need for further infrastructure improvements. These factors present challenges in scaling up solar energy deployment, which is necessary to transition away from traditional fossil fuels.

Future On-Grid Solar Market Demand in Montenegro:

• The future demand for solar energy in Montenegro is promising, particularly with the country’s ambitious target of achieving 50% renewable energy in its energy mix by 2030. The government is focused on improving its regulatory framework and attracting foreign investment to accelerate solar energy development.
• The Solari 5000+ program plays a central role in this growth, as it will help develop significant solar capacity through competitive procurement. The program’s success could serve as a model for similar future initiatives and lead to further large-scale solar projects.
• Solar adoption is expected to address Montenegro’s energy security concerns, especially during periods of high demand when the country’s electricity grid struggles to meet the needs of consumers.
• Montenegro’s efforts to integrate solar energy into its national grid will not only help diversify the energy mix but also reduce the country’s reliance on imported fossil fuels.
• As more solar capacity is added to the grid, Montenegro will see improvements in energy resilience and sustainability, aligning with broader EU energy goals. With continued investment and government support, the solar market in Montenegro is poised for significant growth in the coming years.Bottom of Form

A Solar Photovoltaic Installer working in Montenegro will typically earn around $20,840 USD per year, with salaries ranging from the lowest average of approximately $11,080 USD to the highest average of $35,260 USD.²⁰

The current population of Montenegro is 635,694.²¹

Estimate for Factory Rent

Monthly Average Warehouse Rental Cost ²²

Lowest Warehouse Rent

• $500 USD/month in Danilovgrad, Spuž and Podgorica, Hercegovačka Street

highest Warehouse Rent

• $1,590 USD/month in Podgorica, Zabjelo (Ground floor) and Bar, Bulevar revolucije

Key Components of Administrative Costs

Salaries and Wages: ²⁰

A Solar Photovoltaic Installer working in Montenegro will typically earn around $20,840 USD per year, with salaries ranging from the lowest average of approximately $11,080 USD to the highest average of $35,260 USD.

Monthly Rents for Office Space ²²

Lowest office rent

• $420 USD/month in Podgorica, centre

Highest office rent

• $4,240 USD/month in Podgorica, City Centre

Electricity Generation ²³

• In 2022, electricity production in Montenegro amounted to 2,731 GWh, marking a 13.6% decrease compared to 2021.
• The majority of the country’s electricity is generated at the Pljevlja coal-fired Thermal Power Plant, along with the Perucica and Piva Hydropower Plants.

Transmission & Distribution ⁴

• Montenegro’s electricity grid comprises a high-voltage transmission grid (400 kV, 220 kV, and 110 kV) and a lower-voltage distribution grid (35 kV, 10 kV, and 0.4 kV).
• The transmission grid, managed by CGES, transports electricity from power plants like hydropower stations and the Pljevlja coal plant and enables regional energy exchange.
• The distribution grid delivers electricity to end-users across urban and rural areas. While reliable, parts of the network require modernization to reduce losses, enhance efficiency, and integrate renewable energy sources, supporting Montenegro’s energy transition efforts.

 Energy Access ²⁴

• According to available data, the energy access rate in Montenegro is considered to be 100%

Energy Exports ²⁵

• In 2022, Montenegro exported $262 million in electricity, ranking as the 46th largest exporter of electricity globally. That same year, electricity was the second most exported product in the country.
• The primary destinations for Montenegro’s electricity exports were Italy ($82.5M), Bosnia and Herzegovina ($69.5M), Serbia ($29.9M), Switzerland ($25.9M), and Slovenia ($23.4M).

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Legal Framework

• The Law on Renewable Energy Usage came into effect on August 31, 2024.
• This law introduces comprehensive regulations for renewable energy, including solar energy.
• Implementation depends on additional by-laws, expected within 12 months of the law’s enactment.

Project Permitting

• The Ministry responsible for energy acts as the single contact point for permit issuance.
• Permit issuance timeframes:
  • >150 kW: 2 years.
  • ≤150 kW: 1 year.
  • Reconstruction: 1 year.
• Extensions: Up to 1 additional year under extraordinary circumstances.

Balancing Responsibilities

• Renewable energy producers bear responsibility for balancing deviations.
• Transition period (until 2025): Transfer of balancing responsibility to an authorized party.
• After the transition: Producers handle their own balancing.

Guarantees of Origin

• Issued per unit of 1 MWh produced.
• Valid for one year and transferable.
• Reciprocity required for guarantees issued by other Energy Community parties.

Prosumers

• Defined as end consumers generating renewable energy for self-use.
• Excess electricity can be stored or sold.
• Simplified connection procedure for systems ≤16 kW.
• Billing options:
  • Net metering: ≤16 kW.
  • Net billing: 16–50 kW.
  • Commercial supply schemes: >50 kW.

²⁷²⁸

The Montenegrin government has undertaken several initiatives and subsidy programs to promote solar energy and renewable sources of electricity. Key efforts include the enactment of the Montenegrin Renewables Act and the implementation of state-driven solar installation schemes like Solari 5000+, which aim to install photovoltaic systems on every suitable roof in the country.

Montenegrin Renewables Act (2024)

The Montenegrin Act on the Use of Energy from Renewable Sources, enacted on August 31, 2024, introduces comprehensive support mechanisms for electricity production from renewable sources, including solar energy. Key features include:

• Support Schemes: These include market premiums and feed-in tariffs. Small-scale plants (up to 400 kW) and demonstration projects are eligible for feed-in tariffs, while larger facilities compete in auctions for market premiums.
• Renewable Energy Communities: These entities promote local energy production and consumption, granting communities the right to produce, store, and distribute renewable energy.
• Guarantees of Origin: Producers must transfer guarantees of origin for renewable electricity to the market operator, who sells them to fund incentives.
• Active Customer Incentives: Net metering, billing schemes, and priority dispatch rights are provided for consumer-producers based on the capacity of their installations.

Solari Programs (3000+, 500+, 5000+)

The state-owned power utility EPCG’s subsidiary, EPCG Solar Gradnja, launched subsidy programs such as Solari 3000+, Solari 500+, and the current Solari 5000+. These initiatives aim to install solar panels on residential, institutional, and commercial buildings:

• Achievements: 29.3 MW of solar capacity installed under Solari 3000+ and 500+, nearing the goal of 30 MW.
• Subsidies: Beneficiaries receive up to 20% subsidy for installation costs, with the option to repay the remaining investment as loans over 5–10 years.
• Target Expansion: Solari 5000+ aims to install rooftop solar panels on all suitable structures, generating approximately 44 GWh annually.

Montenegro’s strategic focus on solar energy not only advances its renewable energy goals but also strengthens energy security, creates jobs, and reduces dependency on traditional power sources, positioning the country as a leader in the regional energy transition.

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Current Projects

Čevo Solar

• Location: Čevo, Montenegro
• Capacity: 4.4 MW
• Inauguration Date: December 21, 2023
• Details: The first ground-mounted photovoltaic facility in Montenegro, with 8,112 solar panels, each with a peak capacity of 545 W, spread over 70,000 square meters. The plant’s planned annual production is 6,064 MWh. It features 26 inverters (125 kW each) and a new substation (0.8/35 kV). Montenegro plans to construct 30 large renewable power plants with a total capacity of 4,000 MW.

Future Projects

EPCG’s 47 MW Solar Power Project in Nikšić

• Location: Nikšić, Montenegro
• Capacity: 47 MW (Peak Capacity)
• Inauguration/Key Dates:
  • Project Announcement: September 11, 2023
  • Expected Annual Output: 61.7 GWh
• Details:
  Elektroprivreda Crne Gore (EPCG) received the necessary urban planning and technical approvals for its 47 MW solar power project located near Krupac Lake, just north of Nikšić. The land for the project is owned by EPCG, and the estimated annual output is 61.7 GWh. This project is a part of EPCG’s efforts to transition to renewable energy, as the state-owned company also operates Montenegro’s only coal-fired power plant, Pljevlja. Additionally, EPCG plans to integrate the solar plant with other renewable energy projects in the region, including floating solar and hydroelectric facilities.

Floating Solar Power Plant at Slano Reservoir

• Location: Slano Reservoir, near Nikšić, Montenegro
• Capacity: 40 MW
• Inauguration/Key Dates:
  • Project Announcement: June 28, 2021
  • Expected Completion: Not yet finalized
• Details:
  EPCG, the state-owned power utility, plans to construct Montenegro’s first floating solar power plant at the Slano reservoir. This project aims to utilize the potential of the reservoir, which spans 9 square kilometers and is owned by EPCG, for renewable energy generation. The location does not face ownership issues and is not considered a tourist destination, making it suitable for solar panel installation. The floating solar system is anticipated to be 12.5% more efficient than traditional land-based systems due to higher sunlight reflection on the water. The project has attracted interest from companies in Denmark, recognized for their expertise in green energy projects.

Briska Gora Solar PV Park

• Capacity: 250 MW
• Location: Ulcinj, Montenegro
• Inauguration Date: Expected commercial operation in 2026 (construction to begin in 2025)
• Details:
  • The project is a ground-mounted solar PV park spanning 6,621,121 square meters.
  • It is expected to generate 450,000 MWh of electricity annually.
  • The project is owned by Elektroprivreda Crne Gore AD Niksic (49%), Fortum (49%), and Sterling and Wilson Renewable Energy (2%).
  • Engineering, procurement, and construction services will be provided by Sterling and Wilson Renewable Energy.
  • The same companies will be responsible for operations and maintenance services.
  • Currently at the permitting stage, this project is part of Montenegro’s effort to integrate more renewable energy into its grid.

SPP Velje Brdo

• Location: Montenegro
• Capacity: 200 MW
• Details: A planned solar power plant with ongoing concession processes for land allocation.

SOLARI 3000+ and 500+ Project

• Location: Montenegro
• Capacity:
  • Initially: 3 kW to 30 kW (expanded to 999 kW for legal entities)
  • Total: Approximately 30 MW
• Details:
  • The project is designed to enable 3,000 individuals and 500 legal entities to install solar power systems on rooftops.
  • Supported by subsidies (20%) provided by the ECO Fund.
  • EPCG offers consumer financing with repayment plans that are lower than prior electricity bills.
  • Consumers primarily generate electricity for their own consumption.

BB Solar

• Location: Podgorica, Montenegro
• Website: https://bbsolar.me/
• Products and Services:
  • Design and execution of all types of electrical installations (high and low voltage)
  • Systems for renewable energy sources
  • Solutions for energy efficiency and environmental protection
  • Equipment supply and installation for solar power plants
  • Implementation of projects for functional and quality energy solutions

Elektrovod

• Location: Montenegro
• Website: https://elvod.me/
• Products and Services
  • Photovoltaic panels for electricity production
  • Solar collectors for water heating
  • Heat pumps for efficient heating and cooling
  • Solar refrigerators (12v/230v) with or without inverters
  • Specialization in solar installations for residential and commercial projects
  • Energy efficiency solutions

Sistem-MNE

• Location: Montenegro
• Website: https://www.sistem-mne.com/o-nama/
• Products and Services:
  • Renewable energy projects and solutions
  • Energy efficiency initiatives
  • Technical design and revision of documentation