Demand for solar power plants in Ukraine has nearly doubled in a year, according to an expert
11 March 09:29
Demand for solar power stations, inverters, and rechargeable batteries in Ukraine has effectively doubled over the past year. Businesses, condominium associations, and private homeowners are increasingly investing in their own power generation and backup power systems. At the same time, equipment prices have generally fallen over the year, although they began to rise at the end of the year due to shortages and global demand for batteries. This was stated in an interview with "Komersant Ukrainian" by Oleksiy Shishkanov, an expert at Dolya Solar Energy, general partner of the Ukrainian Solar Energy Association, and head of the alternative energy department.
— Who are the main buyers of solar inverters and batteries right now?
— Looking at the statistics and talking to partners in the market, everyone clearly notes growth in all areas. The market is showing stable positive dynamics.
Businesses clearly see the economics of such projects and carefully calculate investments and payback periods. For enterprises, the key motives are savings on expensive electricity and ensuring a backup power supply.
Homeowners’ associations are also actively interested in installing solar stations, in particular thanks to government grant programs that compensate for part of the cost.
As for private households, the main motivation here is backup power during power outages. Demand in this segment often depends on the situation in the power grid: when there are no outages, interest declines somewhat.
— How much has the number of consumers installing solar power stations and batteries increased over the last year?
— Based on the dynamics of the last year, we can talk about an increase of approximately 100%, i.e., a doubling of demand.
At the same time, demand in Ukraine is not only driven by market factors. Attacks on energy infrastructure and power outages have a significant impact. In such conditions, electricity becomes not a matter of comfort, but a matter of safety.
The more projects are implemented, the more consumer confidence grows. Businesses, condominiums, and private households see real examples of efficiency and return on investment.
— How have prices for solar panels, inverters, and batteries changed over the last 6–12 months?
— The general trend throughout the year has been a decrease in the cost of equipment. This is a global trend associated with an increase in production volumes.
Prices fell slightly, by about 3–5% over six months.
However, the situation changed at the end of the year. After massive attacks on the energy sector, demand rose sharply, and equipment began to be in short supply on the market. During this period, prices for backup power systems began to rise.
In addition, global demand for energy storage systems, especially lithium-iron-phosphate batteries, is growing rapidly. As a result, some manufacturers are already revising their prices upward.
— What factors have the greatest impact on changes in equipment costs?
— There are several main factors.
First, a sharp increase in demand during critical periods, when demand can exceed supply by ten times.
Second, exchange rates. Most equipment is imported, so changes in the dollar or euro exchange rate directly affect the final cost.
Third, logistics and equipment availability. At certain times, there was a shortage, and companies had to order equipment directly from China. Delivery took about two months, and during that time, prices could change.
— How profitable is it to install a solar power plant for a household now?
— Actually, installing a solar power plant is profitable.
On the one hand, the electricity tariff for the population remains relatively low — about 4.50 UAH per kWh, and with a two-zone meter, the night tariff is approximately 2.20 UAH.
But the key factor is energy security. Full restoration of the energy infrastructure after Russian attacks could take years.
In such conditions, households will have to provide backup power. A generator requires fuel and maintenance, while a solar power plant with batteries operates more autonomously and requires almost no intervention.
In addition, there are currently loan programs that allow for the installation of stations at 0% for systems up to 10 kW.
— Is there a seasonal factor in the installation of solar power stations?
— Yes, there is seasonality. It is best to start preparing the project in winter so that you can move on to installation in spring or early summer.
Traditionally, demand is highest in the spring, continues slightly into the early summer, and declines at the end of the summer.
However, in Ukraine, demand is highly dependent on the situation in the energy system. For example, last fall, demand rose sharply again due to attacks on the energy sector.
— What is the maximum allowable power for households and condominiums?
— For private households, the maximum permitted power is 30 kW. This is usually sufficient even for large houses.
There is no direct restriction for condominiums — generation cannot exceed the power of the building’s connection to the power grid.
— What solutions are available for apartment dwellers?
— For an apartment, the optimal solution is a small system: a 5–6 kW inverter and a battery of approximately 5 kWh.
If necessary, another battery can be added — up to 10 kWh. Such a system is usually sufficient to survive a power outage lasting 4–8 hours.
For multi-story buildings, it is important that the condominium association or residents initiate the installation of backup power for critical infrastructure — elevators, water supply pumps, and heating systems.
— What is the current situation with the “green tariff”?
— The green tariff continues to apply to private households, although its popularity is gradually declining as the rate decreases every year.
However, some owners still connect to it and sell surplus electricity to the grid.
This system is used much less frequently for small businesses. Companies usually install solar stations for their own consumption, as the electricity tariff for businesses is higher and the investment can pay for itself in about two years.
