Off the Grid—Why Solar Won''t Solve Lebanon''s
Solar panels were available before 2019, but few people opted to install them, since electricity supplied by EDL and private generator
In 2022, Lebanon imported 80,315 tons of solar panels, quadrupling the total imported in the previous decade, with over US$500 million invested by the private sector in decentralized solar applications (Boukather, 2023). By June 2023, decentralized solar installations had reached an estimated capacity of 1,000 MW (Taha and Akel, 2024) 2 .
We are also paying a lot for fuel.” ME Green was one of the early solar-power companies in Lebanon, but the sector has ballooned, from around 150 registered businesses in 2020 to more than 800 today, according to the LCEC's Khoury.
The country's current energy model heavily relies on heavy fuel oil plants and diesel generators, with 97% of energy being imported (Karam et al., 2020). Nearly half of Lebanon's national debt is attributed to the electricity sector, largely due to unsustainable subsidies and widespread electricity theft (Ayoub et al., 2021).
This rise is driven primarily by widespread distrust in the public utility and government, reduced costs, and growing public awareness of pollution and health concerns. This policy brief proposes reducing import red tape measures and exempting solar panels and related accessories from customs and VAT taxes.
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