Solar power not too dear for far-sighted investors – opinion

Investments in solar energy projects are not absolutely too dear against the backdrop of the surge in natural gas and electricity prices, says the chief of an Armenian company engaged in the production of alternative power.

Artin Melikyan, who heads the closed joint-stock company Solar, says he believes investments in alternative energy production will fully meet all expectations in about six or seven years' time. “What now seems dear is very relative, so I don’t think it is an expensive pleasure for a far-sighted client. Expensiveness is very relative given the surge in the natural gas and electric power [prices], and all the risks stemming from our status as an energy importer. And the considerable increase in orders by both individuals and businessmen testify to what I say,” he noted. 

Melikyan said he doesn’t expect any state support to such an initiative. “I don’t think there will be any state assistance, because don’t believe the government bodies in Armenia will have that will, being under the pressures of the gas-supplier and manufacturer. I think it is an open secret to all that they import gas from Russia and distribute electric power through networks,” he said, stressing the importance of investments that would help lower the costs of alternative energy supplies.

Melikyan even brought the example of Iran which abolished the import taxes for alternative energy supplies. “The solar batteries, which Armenia imported at a zero tax rate until three years ago had later to be imported with a 20 percent of value added tax as a result of energy reforms adopted. So the price increased by 20 percent. The only thing the state can do is to lower the import taxes. Secondly, it can grant income tax privileges to such companies. That’s to say, it can lower or abolish the taxes,” he noted.