Today, the online event “Energy Dialogue: Winter 2024/2025 Results, Recovery Challenges, and Development Prospects”, organized by Energy Club, took place. Among the key speakers was Vladyslav Sokolovskyi, Chairman of the Solar Energy Association of Ukraine (SEAU), who presented an analysis of the development of solar energy in Ukraine and its future prospects.
Rising demand for solar energy
According to Vladyslav Sokolovskyi, demand for solar energy increased due to widespread power outages in June–August 2023. This prompted many businesses and households to install their own solar power plants (SPPs).
“Last year, according to SEAU estimates, around 800 MW of solar capacity was installed in Ukraine for self-consumption. Solar energy plays a key role, especially in spring and summer, when production is most efficient,” noted Sokolovskyi.
The cancellation of VAT and import duties on solar panels from July 1, 2023, also had a positive impact on the industry.
“This change significantly simplified access to equipment and reduced costs for businesses striving to ensure their own energy independence,” added Sokolovskyi.
Legislative changes stimulating the market
Among the key regulatory changes driving market development, Vladyslav Sokolovskyi highlighted the introduction of active consumer status and the adoption of the “Green” Transition Law. These measures allow businesses not only to use electricity for their own needs but also to sell excess energy to the grid.
“Previously, enterprises could only consume the energy they generated. Now, they have the opportunity to sell it on the market, earning additional income. This stimulates businesses to invest in solar power plants,” explained Sokolovskyi.
Another important tool is corporate Power Purchase Agreements (PPAs), which allow enterprises to build solar power plants and sell electricity directly to consumers under long-term contracts.
“This opens new opportunities for investors interested in financing industrial solar power plants, ensuring the stability and profitability of such projects,” emphasized Sokolovskyi.
Challenges facing the renewable energy market
Despite positive developments, the renewable energy market in Ukraine faces several challenges, including a shortage of qualified specialists for solar power plant installation, the need for additional regulatory measures, and war-related risks.
“There is a labor shortage among installation companies, so SEAU is actively involved in training programs for new professionals. We collaborate with universities, particularly Kharkiv Polytechnic Institute, to develop this field,” emphasized Sokolovskyi.
He also noted that foreign investors are entering the Ukrainian market, showing interest in both self-consumption solar projects and large-scale industrial SPPs.
Debt issues as a key investment barrier
One of the biggest obstacles to attracting investment remains the government’s outstanding debts to producers of “green” electricity.
“Investors evaluate the market situation and see the existing debts. This discourages them and makes them think twice before investing in projects in Ukraine. The government must repay its debt to renewable energy producers and prevent further accumulation of arrears,” stated Sokolovskyi.
He also pointed out that the recently established Decarbonization Fund of Ukraine and its loan programs, including the state-backed 5-7-9% loan program, create new opportunities for financing energy projects but require further improvements.
Prospects for 2025
According to the SEAU Chairman, in the coming years, solar energy’s share in Ukraine will continue to grow, especially in distributed generation. If the situation in the country stabilizes, the market may return to constructing large industrial solar power plants.
“Solar energy is a strategic direction for Ukraine that helps enhance energy independence and creates new opportunities for businesses. It is crucial to ensure transparent regulations and investor support to fully realize the industry’s potential,” summarized Sokolovskyi.
The development of solar energy in Ukraine is showing positive dynamics, but it requires solutions to debt issues, workforce shortages, and investment attraction. At the same time, new legislative changes, increasing business interest, and state support programs are laying a solid foundation for further industry growth.