The country’s energy balance: how much it depends on solar generation
25 July 15:45
In June, solar power in the EU became the largest source of electricity for the first time, generating 22.1% of the EU’s electricity and surpassing nuclear power, which provided 21.8% of electricity. Ukrainian solar generation cannot yet boast of such results. But it provides other benefits for the economy, the power grid, and the owners of solar power plants.
This summer, Ukrainians’ homes remain lit. Neither the summer heat nor the increased operation of air conditioners provoked by it upset the balance in the power system. It is possible to maintain it, not least thanks to the operation of solar power plants. On the one hand, the heat means an increase in consumption, but on the other hand, it is during these hours that solar power generation also increases. Therefore, in practice, one overlaps the other, and as a result, it stabilizes the situation.
Moreover, the number of solar power plants is growing. According to the Solar Energy Association, in 2024, approximately 800 MW of solar power plants were built in Ukraine at the expense of businesses and households. And this process continues. Darya Orlova , electricity market analyst at ExPro Agency, explains.
“Now there is a tendency for people to install solar panels on their homes. And this has an impact on the power system. On the one hand, it increases the production of electricity that goes into the grid, but on the other hand, it reduces the consumption of electricity by the population: people provide themselves with autonomous power,”
– the expert states.
As for the opportunities to catch up and overtake Europe, the situation is as follows: on average, solar generation accounts for 8-10% of the country’s energy balance. But much depends on the time of year. In the summer, for example, this figure can reach 14% or 15%, especially when nuclear power units are undergoing repairs. However, in general, the potential of the same nuclear generation is much higher. Daria Orlova continues.
“Nuclear power accounts for 50% of our energy mix, so it remains the largest. Coal energy accounts for up to 20%, maybe even a little more. That is, renewable energy sources, including the sun, still occupy a smaller share in Ukraine compared to coal energy and compared to nuclear energy,”
– the analyst notes.
But, as they say, it is not yet evening. Ukrainian solar generation has the potential for development.
Who converts solar energy into electricity
How many solar power plants (SPPs) are powering the Ukrainian economy and Ukrainian homes? This question is answered by
“Currently, there are 700 solar power plants in the country. But this is with the clarification that we are talking about those with a capacity of more than 1 megawatt. If we count the total capacity, we have about 6 gigawatts of industrial power plants. Businesses and household owners also install many solar power plants for their own needs. They are partially accounted for, as this part of the solar energy sector is much more difficult to calculate. There is one more category – home solar stations operating under the green tariff – 55 thousand plus, and this is an additional 1.7 gigawatts of installed capacity. That is, all solar generation is at least 8.5 gigawatts of capacity,”
– says Vladyslav Sokolovskyi.
Recently, many companies, institutions, and organizations have been sharing photos on social media with solar panels on their roofs or premises. And it was not just a response to power outages. It’s just that owning a solar power plant is profitable. Vladyslav Sokolovskyi continues.
“Nowadays, there are many companies that install SPPs and produce electricity for their own needs. For example, Epicenter, Nova Poshta, a lot of them. Last year, MHP, a large agricultural company, built significant SPP capacities. The goal is to cover all or part of their electricity needs and reduce costs. They don’t sell energy on the market, but they have this option in reserve,”
– says the expert.
He gives an example: a plant built a solar power plant for itself, but then partially stopped production or reduced consumption. Thus, it had a surplus of electricity. And today, it has the opportunity not to obtain all the necessary licenses like an industrial power plant, but to follow a simplified procedure and acquire the status of a so-called “active consumer.” This status allows for the sale of surplus electricity at free prices, but does not allow for the sale of surplus electricity at market value on the wholesale market, the energy expert says.
“Or, for example, the same farmer has installed a solar power plant – he also has two options. First, he can minimize his electricity bills completely. Here’s the point: the market price of electricity for a non-household consumer, and in particular an agricultural enterprise, is between UAH 9 and 11 per kilowatt-hour. After the installation of the solar power plant, there are net savings due to its own generation. There is a second option. If the farmer’s SPP can produce more than he consumes, he has the option of an “active consumer” – selling the excess electricity,”
– explains Vladyslav Sokolovskyi.
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The trend of the year is energy storage facilities
Last year’s problems with energy supply were the impetus for the installation of energy storage systems, among other things. The national energy company Ukrenergo organized special auctions for the purchase of ancillary services, the winners of which expressed their readiness to build and operate not only gas piston, gas turbine, and biomass power plants, but also energy storage facilities. Their task is to balance the power system at the right time, i.e. to maintain its normal operation.
However, energy storage facilities also open up new opportunities for owners of conventional solar power plants. According to Sokolovsky, this year will be “explosive” in this regard.
“In the summer, we have the lowest electricity price, from about 12 to 14 hours, when the highest generation from solar power plants is achieved. And the highest price is in the evening, from about 7 pm to 11 pm. This is called the evening peak. And in the morning, we have a similar situation – from 7 am to 11 am. So what are the options? You can pump relatively cheap energy during the day into your own storage facility and sell it during peak hours. Storage systems are also beneficial for businesses in terms of smoothing their generation and consumption schedules. For example, there is a solar station that charged a storage facility during the day, and then the company received electricity for its needs in the evening from the same battery,”
– explains Vladyslav Sokolovskyi.
“Home power plant” is not difficult
The opportunity to save money on electricity consumption and to provide themselves with electricity in the event of blackouts has encouraged many Ukrainians to install their own “home” power plants. And this private interest, among other things, has already allowed solar generation to build up some muscle recently. But it is not the only one.
“Prices for solar panels and energy storage have fallen. This is a global trend and has been going on since last year. Last year’s abolition of import VAT and duties on this equipment also contributed to the reduction in the cost of photovoltaic modules and batteries in Ukraine. Compared to the prices of 3-4 years ago, we see a several-fold drop,”
– states Vladyslav Sokolovskyi.
As for the cost of installing a “home” solar power plant, according to Atmosfera, the largest share of costs is occupied by batteries – 40%, the inverter will “pull” 10% of the total project cost, and solar panels – 15%. At the same time, the price of one 600-watt panel is about $100. Installation and design account for about 10-20% of the cost. The final price, according to Atmosfera CTO Oleksandr Kovpak, depends on the complexity of the work, the type of fasteners and roof features, as well as the complexity of connecting to the existing system. If the budget is limited, it is possible to optimize costs by installing a smaller battery. On average, the price of a 5 kW PV system for a household is about 5 thousand dollars. Depending on the initial investment and consumption level, the payback period of a PV system can be from 5 to 10 years.
Another feature is worth paying attention to. Given the peak growth in demand in Ukraine for the construction of their own SPPs, hundreds of “one-time” players have appeared – installers without proper training, experience or responsibility. According to Vladyslav Sokolovskyi, the main challenge for a person who intends to install a solar power plant and does not plan to sell electricity to the grid is to find a company that will do everything technically right.
“The easiest way is to go to our website of the Solar Energy Association of Ukraine, to the page of the Installers’ Catalog. It contains more than 50 companies that provide services for the installation of solar power plants. There are installers that work exclusively in a certain region, but there are also those that perform work throughout Ukraine. So, you can choose the most suitable option,”
– says Vladyslav Sokolovskyi.
There is also a realization among professionals involved in the development of solar power plants that the market needs clear standards, qualification requirements for companies that have the right to work with solar power plants, and the introduction of responsibility for project implementation. This should improve the quality of services and customer confidence.
Summary
Solar energy in Ukraine continues to grow – not only as an important element of the energy balance, but also as a real tool for energy independence for businesses and citizens. Thanks to more affordable equipment, simplified installation conditions, and support from the government and the market, more and more Ukrainians and companies are choosing the sun as a source of light, stability, and savings. And although the share of solar power in total electricity production is still modest compared to the EU or nuclear generation, the potential for further growth is obvious.
Sergiy Vasylevych