Armenia to subsidize interest rates on loans and leases for energy storage systems — by up to 10 percentage points

YEREVAN, October 17. /ARKA/. Armenia is introducing a state subsidy for interest rates on loans and leases used to purchase electrical energy storage systems, announced Armenian Minister of Economy Gevorg Papoyan.

In a video posted on social media, the Minister noted that the level of support will range from 6 to 10 percentage points, depending on the financial instrument and the currency of the financing.

The new mechanism is established by Armenian Government Decree No. 1502-L, dated October 15, 2026, which introduces amendments to the state program for economic modernization.

Subsidy Terms

Under the approved terms, the following interest rate subsidies apply to the purchase of electrical energy storage systems and their components:

  • Leases in Armenian drams: 10 percentage points.
  • Leases in foreign currency: 8 percentage points.
  • Loans in Armenian drams: 8 percentage points.
  • Loans in foreign currency: 6 percentage points.

The maximum duration for the interest rate subsidy is 84 months, or seven years.

State support applies to the acquisition of energy storage systems and their components, provided they are used exclusively for storing electricity generated by solar power plants or solar panels.

The specified subsidy levels represent a reduction in the interest rate—covered by the state—by the corresponding number of percentage points; they do not indicate the final cost of financing for the borrower.

The decree enters into force on October 25, 2026. For previously approved loans and leasing transactions, the terms in effect at the time of their approval remain unchanged, while the new provisions apply to applications that had not yet been approved by the date the resolution entered into force.

The program is being implemented as part of the targeted economic modernization measures approved by the Government of Armenia in March 2020, which provide for state subsidies on interest rates for loans and leases used to acquire equipment and carry out investment projects.

The inclusion of energy storage systems expands the scope of state support and creates an additional financing instrument for investments in solar energy infrastructure.

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