---
title: "Solar Energy Contracts"
url: "https://legal.ge/en/service/environmental-and-energy-law-en/solar-energy-contracts-en"
field: "Environmental & Energy Law"
description: "Solar energy contracts in Georgia: micro-capacity plants, standard supply terms, bilateral market and supplier choice rules. Legal.ge."
reviewed: "2026-07-09"
updated: "2026-10-14"
publisher: "legal.ge"
---

# Solar Energy Contracts

> Source: legal.ge, https://legal.ge/en/service/environmental-and-energy-law-en/solar-energy-contracts-en

## The Micro-Capacity Power Plant Regime

The legal frame of solar energy contracts begins with Article 38 of the Georgian Law on Energy and Water Supply. The owner of a micro-capacity power plant, a final consumer using such a plant, or a group of final consumers, may connect the plant to the distribution network and supply the surplus electricity produced by it, defined in accordance with a legal act of the Commission, into the distribution network under the conditions established by the distribution network rules and the supply rules. The right to purchase the surplus electricity delivered into the distribution network belongs to any supplier of electricity in accordance with the supply rules, while in the cases and under the conditions defined by the same rules the surplus is purchased by the universal service supplier in whose service area the plant is located, and/or by another supplier bearing a public service obligation imposed in the manner established by this law. The conditions of the final consumer's use of surplus electricity, including the netting conditions between electricity produced by the micro-capacity plant and electricity consumed, as well as the purchase fee, are established by the Commission.

An important advantage of this regime is the absence of administrative burden: the production of electricity by a micro-capacity plant and the supply of surplus energy are not covered by the regulatory regime established by the energy law, the Law on Licenses and Permits and the Law on Regulation Fees, and the legislation regulating market relations applies to such plants only in the cases directly provided for. A final consumer who supplies surplus energy into the distribution network is exempt from paying the fee for system and market operation services. For the stability of the system, the aggregate capacity of micro-capacity plants connected to the distribution network must not exceed the maximum amount determined by the Commission on the basis of consultation with the system operators.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/environmental-and-energy-law-en/solar-energy-contracts-en

### Can surplus solar energy be sold into the network?

Yes — the owner of a micro-capacity plant supplies surplus electricity into the distribution network; any supplier may buy it, and in defined cases the universal supplier.

### Does a micro-capacity plant need a license?

No; the regulatory regime does not apply to its production and surplus supply, and the final consumer is exempt from system and market operation fees.

### What is the bilateral contracts market?

Purchase and sale through direct negotiations or the platform between market participants; reporting on concluded contracts is mandatory.

### Can the consumer choose a supplier?

Yes; the Government sets mandatory criteria as the market opens, and a subscriber without a contract remains protected by universal service.