A 30 MW annual rooftop quota and a compensation tariff that overshoots estimated grid impact costs by three to four times are keeping distributed solar on the sidelines as Cambodia’s utility-scale capacity races past its own long-term planning targets.
Nearly 1.5 GW of installed solar capacity has pushed Cambodia past its Power Development Master Plan (PDP) targets for both 2030 and 2035 ahead of schedule, with solar now supplying more than 10% of national electricity generation, according to the Institute for Energy Economics and Financial Analysis (IEEFA).
Cambodia’s PDP had projected 705 MW of solar capacity by 2025, 1 GW by 2030, and 1.3 GW by 2035. IEEFA said in a briefing note this week that the country surpassed its 2025 target a year early. Several projects due for completion in 2026 are expected to add nearly 400 MW, bringing total installed solar capacity to approximately 1.87 GW by year-end, according to Electricity Authority of Cambodia projections cited by IEEFA. The 930 MW Chheu Tom Solar Complex could push total capacity beyond 2 GW, the think tank said.
Cambodia imported approximately 1 GW of solar panels from China in 2025, according to Ember data cited by IEEFA, with monthly imports reaching a record 422 MW in March 2026. A reduction of import taxes on solar and energy storage technologies from 15% to zero, effective April 1, could reduce installation costs by as much as 30%, according to one manufacturer estimate, with IEEFA projecting a 7.4% decline in total project costs.
