Forced solar panel installation sparks complaints among entrepreneurs in Uzbekistan

In several regions, entrepreneurs are being pressured to install solar panels. On the morning of September 7, stores, pharmacies, gas stations, bakeries, educational centers, and other businesses in the Altynkul district of Andijan were disconnected from the electricity grid. Business owners in the district reported this to Kun.uz. The district power supply company demanded that entrepreneurs install solar panels.

"We’re being told: 'Install solar panels and show us the contracts, then we'll give you electricity.' From early morning, larger businesses have been searching for solar panels. They can afford it, but I can’t right now, I don’t have extra money. Okay, give us a month to install them, and we’ll figure something out. But they are demanding this right now! They are just harming businesses," said one of the businessmen to Kun.uz.

Entrepreneurs report that this coercion is happening not only in Altynkul but in other districts as well. According to social media reports, a methane gas station in one of Namangan's districts was cut off from gas because solar panels weren’t installed, which caused long queues at another station.

In response, the Ministry of Energy condemned the forced installation of solar panels. The ministry reminded that such coercion contradicts the law, but neither confirmed nor denied the existence of such cases. However, the organizations disconnecting entrepreneurs from the power grid—regional electricity companies—are directly subordinate to the ministry.

According to the Ministry of Energy, presidential decrees mandate the promotion of such products for businesses and households that have the ability to install solar panels and solar water collectors. However, there is no mention in any document that anyone should be forced to install solar panels or cut off from the grid if they fail to do so, the statement said.

Entrepreneurs from Andijan reported to Kun.uz that electricity was turned off on September 7 and restored on September 9.

"The electricity is back for now, but we haven’t received clear explanations from the grid. They’ve given other entrepreneurs some time, but we don't have the capacity right now. If there are any obligations, we ask for some time. They are forcing us to install solar panels not only in our district but in other places too.

Either by the end of this year or by another set deadline, they could provide benefits to both those who can and those who cannot install them. Then we would also install the panels. Let us pay from our earned income, whether they provide it as an interest-free loan or allow payment over time without an initial deposit. Not all entrepreneurs in Uzbekistan earn big profits. There are those who earn very little," said a businessman.

Economist Otabek Bakirov stated that practical actions are needed to stop the forced installation of solar panels. In his opinion, a communication bot, hotline, or online platform is necessary where entrepreneurs can report cases of coercion, and it would make sense to assign this to an independent body, such as the Competition Committee.

Bakirov also noted that the prices of panels are rising due to the pressure to install them. He believes that there is insufficient competition in the solar panel market. The Ministry of Energy responded that there is no monopoly on the import of panels and inverters and reported that over 1.5 million solar panels were imported into Uzbekistan by 107 businesses in the first eight months of this year. Bakirov countered by saying that most of the companies mentioned by the ministry import panels for their own needs, not for sale.

"The issue is that there is a disparity in opportunities, with only two 'favored' organizations importing panels and their components duty-free. Privileges should either be extended to everyone or to no one," said the economist. Bakirov called for leaving the decision of whether to install panels or not up to the market and entrepreneurs.

Earlier, during an open dialogue with business representatives ahead of a meeting between the head of state and entrepreneurs, one businessman revealed that only two companies are allowed to import components for solar panels duty-free.