North Macedonia has an installed solar power capacity of approximately 535 MW. ⁶

The National Energy and Climate Action Plan in North Macedonia aims for over 1 GW of photovoltaic (PV) capacity by 2040. ⁷

Coal:⁸ While specific the average cost of electricity generation from coal is not available,the average operational expenses of the coal plants is approximately $0.01 USD per kWh.

Hydropower:⁹ The cost of producing electricity from hydropower in North Macedonia varies based on the plant’s size and type. Feed-in tariffs for small hydropower plants range $0.045 USD TO $0.12 USD per kWh.

Natural Gas: specific figure for the average cost of producing electricity from gas in North Macedonia is not readily available.

Solar Power: specific figures for the average cost of producing electricity from solar PV  in North Macedonia  are not readily available.

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• Coal: 39.94 %
• Hydropower: 24.08%
• Gas: 19.82%
• Oil: 7.78%
• Solar: 4.99%
• Wind : 2.06%
• Bioenergy: 1.32%

The exact figure for the average daily availability of electricity from the national grid in North Macedonia is not available, residents of North Macedonia experience frequent power outages, with some lasting for several hours. ¹¹

The exact number of residential solar panel installations in North Macedonia isn’t readily available. However, In 2019, 79,242 households had installed solar collectors, with 78,093 of them actively in use. ²

The country has also seen a significant increase in solar energy projects, with a notable rise in issued energy licenses for renewable energy. ¹²

From publicly available records, it seems like there are around 43 installed and projected solar farms in North Macedonia. ¹³

The demand for solar home systems in North Macedonia is on the rise. This growth is driven by the country’s commitment to renewable energy and the need for reliable power solutions, especially in areas with frequent outages.

Projected Demand: The Macedonian government aims to install 400 MW of rooftop PV capacity by 2040, as outlined in its National Energy and Climate Plan 2040. ⁷

Current Demand: As of 2023, the installed capacity for on-grid solar PV in North Macedonia  is approximately 535 MW. ⁶

Projected Demand: The on-grid solar PV market in North Macedonia is projected to continue its growth, with an expected 1 GW to be installed by 2040. ⁷

The average monthly salary of a solar industry worker is not readily available. However, average salaries for individuals working in Electrical & Power Engineering in North Macedonia typically range from approximately $510 to $1,190 per month. ¹⁴

As of January 1, 2025, the population of North Macedonia is approximately 1,818,350 people. ¹⁵

The overhead costs for solar panel production in North Macedonia typically range from 20% to 25% of the total production cost.

Labor costs:¹⁶ The average monthly salary in the country is about 490 US dollars.

Utilities

• Industrial Electricity Prices : Approximately  $0.216 per kilowatt-hour. ¹⁷
• utilities (including water, gas, heating, cooling, and electricity) can cost around $50 per month for a small apartment, while for a larger apartment, approximately 85m², the cost can be around $100 per month. ¹⁸

Rent:¹⁹ The cost of renting a warehouse in North Macedonia can vary based on location and size:

• A 650 m² warehouse in Butel 2 costs around $1,070 USD per month.
• A 170 m² warehouse in Kisela Voda is approximately $535 USD per month.
• A 200 m² warehouse in Shuto Orizari is about $321 USD  per month.

Facility Maintenance costs ²⁰ for manufacturing facilities in North Macedonia can vary based on several factors, including the size of the facility, the type of equipment used, and the specific maintenance practices in place. On average, maintenance costs for facilities in Europe, including North Macedonia, are around €28.82 per square meter per year

Administrative Expenses costs associated with the management of the production process, including salaries of administrative staff, office supplies, and other general expenses, typically add up to a substantial part of the overhead.

Quality control expenses incurred to ensure the solar panels meet performance and safety standards, including testing and inspections.

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North Macedonia’s energy infrastructure is characterized by a mix of fossil fuels, hydropower, and increasing renewable energy sources. Here are some key points:

• Electricity Generation: The country relies heavily on fossil fuels, particularly low-grade lignite, and gas. In 2022, North Macedonia generated 5,634 GWh of electricity and imported an additional 1,471 GWh to meet domestic demand.
• Electricity Transmission: The state-owned company MEPSO is responsible for electricity transmission. It operates the high-voltage network and ensures a smooth electricity flow to large industrial consumers and distribution networks. MEPSO is unbundled and certified in accordance with EU regulations.
• Electricity Distribution: The distribution system is managed by Elektrdistribucija, which is legally and functionally unbundled from other branches. The distribution network delivers electricity to residential and commercial consumers across the country.
• Electricity Consumption: In 2022, North Macedonia’s electricity consumption was 5.79 billion kilowatt-hours (kWh), a decline from 6.81 billion kWh in 2021. The country imports a significant portion of its electricity to meet domestic demand.
• Power Plants: The main sources of electricity include two coal thermal power plants with a combined capacity of 824 MW, nine large hydropower plants with 571 MW capacity, 123 small hydropower plants with 148 MW capacity, and three gas CHP plants with 287 MW capacity.
• Renewable Energy: North Macedonia is making strides towards renewable energy. The country has plans to increase wind and solar power capacity. For instance, a new phase of a wind park project aims to add up to 15 MW, producing around 50 GWh annually.
• Energy Strategy: The government adopted the Energy Development Strategy 2020-2040, which includes scenarios for coal phase-out by 2025, making it one of the first countries in the Western Balkans to propose such a timeline. The National Energy and Climate Plan (NECP) adopted in June 2022 supports these progressive scenarios.
• Challenges and Future Plans: The country faces challenges with its aging infrastructure and the need for modernization. There are ongoing discussions about upgrading obsolete equipment and transitioning to more sustainable energy sources.

North Macedonia  has several regulations and policies in place to support the production and deployment of solar panels:

Importation Process, Duties, and Taxes:²⁴ Importing solar panels into North Macedonia involves several regulations, duties, and taxes:

• Customs Duties: North Macedonia imposes customs duties on most imported products, including solar panels. The duty rates can range from 0% to 35%, depending on the product classification. Solar energy systems are generally taxed at a preferential rate of 5%.
• Value-Added Tax (VAT): A VAT of 18% is applied to most products and services. However, solar energy systems benefit from a reduced VAT rate of 5%.
• Compliance with EU Standards: As a candidate for EU membership, North Macedonia aligns its customs laws with EU regulations. This alignment aims to simplify customs procedures and enhance transparency.
• Preferential Tariffs: Preferential tariffs apply to countries with which North Macedonia has signed bilateral Free Trade Agreements, such as the EU Stabilization and Association Agreement (SAA), European Free Trade Agreement (EFTA), and Central European Free Trade Agreement (CEFTA).

Quality Standards:²⁵ In North Macedonia, the quality standards for solar panel products are influenced by both national regulations and international standards.

International Standards: Solar panels in North Macedonia generally adhere to international standards such as IEC 61215 for crystalline silicon terrestrial photovoltaic (PV) modules and IEC 61730 for PV module safety qualification.

Energy Efficiency Regulations: While there are no specific rules for solar thermal systems, there is a book of rules for the energy efficiency of newly constructed buildings. This indirectly impacts the quality and installation standards for solar panels.

Quality Assurance: Companies like Electrolux Solar Solutions, which operate in North Macedonia, emphasize high manufacturing standards and quality assurance measures to ensure reliable and efficient solar products.

Government Strategy: The government’s strategy for energy development includes promoting renewable energy sources, which supports the adoption of high-quality solar products.

Law on Renewable Energy Sources:²⁶ This draft law aims to simplify the licensing process and reduce administrative obligations for renewable energy projects. It also introduces the concept of strategic projects, making them eligible for state aid.

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North Macedonia offers several incentives to attract and support solar panel manufacturing industries:

Tax Incentives:

• Corporate Tax Rate: A reduced corporate tax rate of 10%, which is one of the lowest in the region.
• Tax Holidays: Investors in free zones are entitled to a 10-year tax holiday for corporate profits, employment income, VAT, and customs duties.
• Customs Duty Exemptions: Exemptions on customs duties for equipment, machines, and spare parts.
• Investment Grants: The government may support capital investments with a return of 10% of investment costs in new machines and equipment or investment in buildings and land.

Land and Infrastructure Support:

• Long-term Land Lease: Land in free zones is available under long-term lease for up to 99 years at concessionary prices.
• Utility Connections: Free connection to natural gas, water, and sewage networks.
• Public-Private Partnerships: The government encourages public-private partnerships for the construction of solar power plants in industrial zones. These partnerships often include favorable terms for land use and revenue sharing.
• Subsidies for Photovoltaic Power Plants: The government plans to finance 200 MW of photovoltaic power plants from the state budget, offering support through premium rates

Installed Projects

Negotino solar project:³⁰

• Location: Negotino, Vardar Region, North Macedonia
• Capacity: 5.3 MW
• Status: Operating

Probistip solar Project:³¹

• Location: Eastern Region, North Macedonia.
• Capacity: 8.4 MW
• Details: Commissioned 2022.
• Status: Operating

Eastern Region solar project VI:³²

• Location: Eastern Region, North Macedonia
• Capacity: 6.8 MW
• Details: Operating.

Projected Projects

Oslomej Solarpro (Phase 1), Oslomej Fortim (Phase 2):³³

• Location: Oslomej, Kičevo Municipality, Southwestern Region, North Macedonia.
• Capacity: 50 MW for phase 1 and 50 MW for phase 2
• Details: Under construction.

Oslomej 2 Solar Plant:³⁴

• Location: at an abandoned coal mine near North Macedonia’s western border
• Capacity: 10 MW
• Details: still in planning stage

Bitola Solar Plant:

• Location: next to the existing Bitola thermal power plant near the southern bordeR
• Capacity: 20 MW
• Details: still in planning stage

Solar Macedonia:³⁵ Located in Skopje, this company specializes in the installation of solar panels and offers various solar solutions for both residential and commercial properties.

MFC-Solar:³⁶ Based in Prilep, MFC-Solar focuses on the design and installation of solar power systems, including both on-grid and off-grid solutions.

Solar Spektar AG:³⁷ Founded in 2011, this company provides technical solutions for on-grid and off-grid photovoltaic power plants, energy efficiency projects, and renewable energy sources. They have certified employees and necessary licenses for project execution.

Enerkom Solar Group:³⁸ Located in Skopje, Enerkom Solar Group offers a range of solar energy solutions, including the installation of rooftop and standalone solar systems.

Unisolar LLC:³⁹ Although originally founded in Kosovo, Unisolar has expanded to North Macedonia. They specialize in the design, installation, and monitoring of photovoltaic systems for residential, commercial, and hybrid applications.