The Myanmar National Democratic Alliance Army (MNDAA), a Kokang ethnic armed organization, has announced plans to impose a heavy annual tax on residents using solar power systems in its controlled territory in northern Shan State.
According to a public notice issued on August 12, the MNDAA will levy an annual fee of 700 Chinese RMB (approximately $100 USD / 450,000 MMK) per kilowatt (1 kW) of installed solar capacity. The tax must be paid in a single lump-sum payment each year.
Under the new directive, solar system owners must register their equipment with the MNDAA-run Myanmar Federal First Special Region Water and Power Co., Ltd. Registration requires submitting personal details alongside technical specifications, including equipment type, system voltage, and battery storage capacity.
Residents in northern Shan State spent their own funds installing solar power systems during nearly three years of continuous grid blackouts that stemmed from military clashes in "Operation 1027," launched by the MNDAA and its allies against the junta. Locals report that the new solar tax, combined with steep regional electricity rates, presents an unsustainable financial strain.
"We had to rely on solar power for three years without electricity, paying for the systems ourselves," said a resident from Hsenwi (Theinni) Township. "Now that grid power is restored, they charge us up to 400 MMK per unit—compared to less than 100 MMK in junta-controlled Lashio. Adding an annual fee of nearly 450,000 MMK for using our own solar power is an extreme burden on ordinary families."
The MNDAA's directive strictly mandates that private solar systems remain completely disconnected from the local power grid. Violators who fail to pay the tax face legal action and fines ranging from five to 10 times the unpaid amount.
The MNDAA currently supplies grid electricity through a 12.6-megawatt hydropower plant located in Honar Village, west of Hsenwi. Managed by the Myanmar Federal First Special Region Water and Power Co., Ltd., the project aims to secure power supplies to attract Chinese industrial investments to the region.
While the utility company plans to expand power distribution across Hsenwi, Kutkai, Tarmoenye, and MNDAA-controlled villages near Lashio, current tariffs—400 MMK per unit for households and up to 700 MMK for commercial users—continue to draw widespread local criticism.
