Regulating the Residential Solar Boom in Lebanon: Policy Frameworks and Strategic Initiatives for Photovoltaic Transition

Abstract

The economic and financial crisis in Lebanon that started in 2019 has exacerbated the shortfalls of the Lebanese energy sector. This is due to the emerging inability to continue funding the imports of fuel oil, the main component that the sector relies on, with hard currencies. Amidst increased and critical power outages, Lebanon has witnessed a significantly observable boom in the installations of distributed solar PV to achieve independence from the failing fuel-powered grids, especially in the residential sector. Installations, however, have been chaotic and unregulated, with the government not playing its role in instating the proper legislative, institutional, and policy environment for these installations to take this transition in a strategic approach. With the current trend, the Lebanese energy sector might be headed in a direction that requires even more reforms down the line. This study aims to assess both the active and dormant laws and institutes that are responsible for regulating distributed solar PV installations and to perform a comparative analysis with other countries across the globe to draw policy recommendations for Lebanon. This study will offer a better understanding of what needs to be done in Lebanon in the upcoming years and aid in instating relevant reforms and policy recommendations.