Bosnia’s Republika Srpska Tightens Solar Subsidy Rules to Prevent Market Abuse

Bosnia and Herzegovina’s Republika Srpska is planning to revise its renewable energy regulations to improve the management of small-scale solar projects and prevent misuse of government support schemes.

The proposed amendments aim to create a fairer and more sustainable renewable energy market by closing loopholes that have allowed some developers to gain subsidies through project fragmentation.

New Rules Target Artificial Project Splitting

Since 2022, small solar power plants in Republika Srpska have benefited from simplified approval procedures, allowing projects without concession requirements to be approved directly by local authorities.

However, some companies have reportedly divided large solar projects into dozens of smaller installations — in some cases 20 to 50 separate plants — to avoid concession fees while still receiving guaranteed electricity purchase prices for up to 15 years.

The government believes this practice has distorted market competition and increased pressure on renewable energy support mechanisms.

Subsidy Eligibility Requirements to Become Stricter

Under the proposed amendment, small solar plants with a capacity of 150kW or less will need to maintain a certain distance from each other to qualify for government-backed purchase incentives.

The reform would also remove the previous subsidy reservation system. Only completed projects that meet all regulatory requirements would be eligible to apply for support.

Renewable Energy Market Moves Toward More Sustainable Growth

The proposed changes reflect a broader effort by Republika Srpska to improve transparency and efficiency in renewable energy development.

By preventing policy abuse and ensuring subsidies are directed toward genuine renewable energy projects, the government aims to encourage healthier solar market growth and attract more sustainable investment.

The amendment is expected to be submitted to the Republika Srpska National Assembly for review, marking another step toward improving the region’s renewable energy policy framework.