Contractors warn that a new regime mandate requiring installation of solar power systems in all high-rises and commercial buildings will send construction costs soaring in Myanmar. The directive further squeezes construction companies already pinched by a shortage of materials, import restrictions, and severe currency volatility.
The Yangon City Development Committee’s Engineering Department issued the order on October 1 as part of a nationwide push for solar amid deepening power blackouts.
From November 1, all commercial projects and high-rise buildings must install solar panels sufficient to power elevators and emergency lighting. For commercial buildings, solar systems must be integrated with power supplied by the Yangon Electricity Supply Corporation (YESC).
The order applies to existing projects, buildings under construction, and those awaiting Building Completion Certificates required for habitation.
“We have been handed the order at a time when prices of solar panels and related equipment are rising daily,” complained a Mandalay‑based builder. “Steel and cement prices are already soaring, so this adds yet another burden.”
Meanwhile, industry insiders warn of a scarcity of skilled technicians capable of installing large solar systems, creating technical and financial hurdles. “Household systems won’t power elevators, which require commercial‑grade solar systems,” the manager of a solar dealership explained. “Installation takes at least two months and costs around 100 million kyat.”
Solar imports to feed surging demand created by the new mandate are controlled by Aung Pyae Sone, son of regime chief Min Aung Hlaing.
Aung Pyae Sone swiftly cornered the lucrative market after his father’s regime waived tax on solar imports in April 2023 under the pretext of boosting the energy grid. His Venus Essential company also holds licenses to supply solar equipment for projects in Naypyitaw and planned 40-megawatt solar power plants in Taungdwingyi, Salin, Pakokku, Pauk, Chauk and Kyunchaung.
The solar mandate comes as regime energy rationing intensifies with more frequent rolling blackouts this year.
“They cut electricity during extreme heat, then order solar systems to be installed,” said a former political prisoner from Mandalay. “But only one company — belonging to the coup leader son — is allowed to import and sell the equipment nationwide. This is not aimed at solving the power crisis, but exploiting authority for personal profit.”
On October 5, the Electricity and Energy Ministry introduced rolling four-hour blackouts under the pretext of surging demand during the El Niño heatwave. Since then, households in Yangon, Mandalay and Naypyitaw have faced daily outages.
The power crisis has driven prices of solar panels and related equipment to record highs. In early August, a 500‑watt panel cost around 650,000 kyat. By mid‑October, the price had surged past one million kyat, putting solar systems beyond the reach of ordinary families.