The online media outlet LIGA.net has published an article dedicated to the development of Ukraine’s solar energy market, the economics of installing solar power plants for businesses and households, and current trends in the development of on-site generation. Vladyslav Sokolovskyi, Chairman of the Board of the Solar Energy Association of Ukraine, shared his insights with the publication.
According to Mr Sokolovskyi, Ukraine’s solar energy market has changed significantly. While previously most projects were developed to sell electricity under the feed-in tariff, today the main drivers for investment are energy independence and reducing electricity costs.
“Today, solar power plants are increasingly being built not as standalone investment assets, but as a tool for ensuring a company’s energy security, reducing electricity costs and protecting against potential power outages,” said the Chairman of the Board of SEAU.
The expert also paid particular attention to the payback periods of solar power plants. According to SEAU estimates, investment payback periods today depend primarily on the electricity consumption profile, the capacity of the facility and the share of generated electricity used for self-consumption.
According to estimates by the Solar Energy Association of Ukraine, the approximate payback periods are:
- industrial enterprises – 4-6 years;
- logistics facilities and warehouses – 4-6 years;
- agricultural enterprises – 4-7 years;
- commercial real estate and shopping centres – 5-7 years;
- households – 7-10 years.
At the same time, as Vladyslav Sokolovskyi emphasises, for many businesses the economic benefits are no longer limited to reducing electricity bills. On-site generation helps avoid production downtime, ensure business continuity and minimise losses during potential power outages.
The expert also highlighted an important shift in the industry’s economic model. Despite the end of the feed-in tariff era for new large-scale projects, investments in on-site solar generation remain economically attractive.
“A certain paradox has emerged: despite the end of the feed-in tariff era for new large-scale projects, payback periods have, in many cases, not increased but actually become shorter,” Vladyslav Sokolovskyi noted.
According to the Chairman of the Board of SEAU, several factors contribute to this trend: a significant decline in equipment costs, technological development and rising electricity prices for businesses. As a result, using solar generation for self-consumption increasingly delivers economic benefits comparable to, or even greater than, those previously provided by selling electricity under the special tariff.
Mr Sokolovskyi also shared updated estimates of the development of Ukraine’s solar energy market. According to SEAU data, more than 1.5 GW of new solar capacity was commissioned in Ukraine in 2025, bringing the country’s total installed solar generation capacity to approximately 8.5 GW.
At the same time, Vladyslav Sokolovskyi noted that the actual scale of the market is even larger than official statistics suggest. An increasing number of businesses and households are installing solar power plants exclusively for self-consumption, without selling electricity to the market. Since such facilities often do not require a licence, a significant share of new installations is not reflected in official reporting.
The Solar Energy Association of Ukraine believes that the development of on-site solar generation will continue to be one of the key areas for strengthening the energy resilience of Ukrainian businesses, communities and households. Growing demand for solar power plants demonstrates a gradual shift from a model focused on generating revenue from electricity sales towards one centred on energy independence, cost savings and greater reliability of electricity supply.