The terms for purchasing electricity have changed for owners of residential solar power systems: Will this affect their income?
17 August 15:04
ANALYSIS FROM 
The National Commission for State Regulation of Energy and Public Utilities (NKREKP) has updated the rules governing private households with solar power plants, particularly regarding the application of the “green” tariff. Will these changes worsen the situation for owners of home solar power plants?
The national regulator has amended the Rules for the Retail Electricity Market and the Procedure for the Sale and Metering of Electricity. For private households with solar power plants, specific time periods have been established during which electricity generated by the solar power plant is counted toward “green” tariff calculations: from April 1 to October 31, between 4:00 a.m. and 11:00 p.m., and from November 1 to March 31, between 6:00 a.m. and 9:00 p.m. Electricity that is not eligible for payment under the “green” tariff will be purchased by the universal service provider at hourly “day-ahead” market prices. It has also been established that the volume of electricity taken into account for calculations may not exceed the generating facility’s contractually agreed capacity during each hour of its operation.
In explaining these decisions, the NEURC limited itself to general statements about creating clearer conditions for the operation of residential solar power plants and ensuring a uniform approach to metering generated electricity and calculating payments under the “green” tariff. However, this decision also has more specific objectives.
In Pursuit of the Tariff
The time intervals during which electricity generated by residential solar power plants will not be paid for under the “green tariff” occur during nighttime hours, when—as is quite obvious—a solar power plant cannot generate electricity. Therefore, it is logical to assume that the regulator aimed to prevent abuse, where electricity from other sources could be fed into the grid under the guise of electricity generated by a residential solar power plant. What exactly are we talking about? In a comment to the publication
“Today, more and more households have not only solar power plants but also energy storage systems. Therefore, the NEURC needed to clearly distinguish between electricity generated directly by a solar power plant—which falls under the ‘green’ tariff mechanism—and other volumes of electricity. Unfortunately, legislation regarding the use of hybrid inverters—which allow for the use of rechargeable batteries alongside photovoltaic modules (solar panels)—lags behind reality. “Therefore, the NEURC still has work to do,” the expert emphasizes.
According to Vladislav Sokolovsky, the logic behind preventing abuse also explains the restriction stipulating that the amount of electricity taken into account for calculations cannot exceed the generating facility’s contractually agreed capacity for each hour of its operation.
“If the installed capacity of a solar power plant is, for example, 10 kW, it is obvious that it cannot physically generate and feed significantly more than 10 kWh into the grid within an hour. This is a standard technical safeguard against manipulation.”
But this logic is not limited to the regulator’s decisions; it is also evident in the concerns of homeowners with solar power plants. They invested their own funds, met technical requirements, signed the necessary contracts, and now face the reality of rule changes and the prospect of unexpected complications. Will these changes worsen the situation for owners of residential solar power systems, and will they face payment issues? That is another question. Here is the perspective of Vladislav Sokolovsky, Chairman of the Board of the Ukrainian Solar Energy Association.
“Based on the structure of the new rules themselves, I see no reason to believe that a conscientious owner of a standard residential solar power system will suffer a significant loss of income. The time intervals established by the NEURC generally cover periods when solar generation is physically possible. Furthermore, electricity fed into the grid outside these time limits should not be free—it will be purchased by the universal service provider at hourly “day-ahead” market prices. “However, a final assessment can only be made once we see how these regulations are applied in practice,” the expert emphasizes.
According to Vladislav Sokolovsky, it is very important to avoid errors in automated metering, incorrect volume calculations, or situations where, due to technical or procedural issues, a bona fide solar power plant owner is not credited for the electricity actually generated under the “green” tariff. The Ukrainian Solar Energy Association has expressed its readiness to closely monitor such cases and, should they arise, raise these issues with the regulator.
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Not Just Advantages
In the first five months of 2026, private households in Ukraine generated 544.8 million kWh of electricity from renewable sources, which they fed into the power grid under the “green” tariff mechanism. More than 86,000 Ukrainian families joined the energy market, becoming not only consumers of electricity but also its producers.
The value of this “home-based” business for them is evidenced by the fact that, from January through May 2026, over 3.28 billion UAH was billed for electricity generated by private households.
These figures are cited by the NEURC, which also notes that under martial law, home-based generation takes on special significance because it helps increase the flexibility of the power grid and maintain the reliability of the electricity supply. Ukrainians are being urged to join this effort, which is important both for them and for the country. But there is another side to this coin—one that isn’t quite so sunny and appealing.
Vladislav Sokolovsky, Chairman of the Board of the Ukrainian Solar Energy Association, commented to the publication
“The most pressing issue today is the timeliness and completeness of payments to owners of residential solar power plants for electricity already generated and fed into the grid. You cannot demand that a private investor strictly comply with all the rules while at the same time allowing arrears to accumulate against them. The individual has fulfilled their part of the agreement with the state: they invested their own funds in generation and fed electricity into the grid. Accordingly, they must receive the payment stipulated by law in a timely manner,” the expert states.
Another strategic issue is the gradual transformation of the residential solar generation model. Vladislav Sokolovsky continues:
“The future of this segment is no longer simply the ‘install panels and sell as much electricity as possible to the grid’ model.” It involves a solar power plant combined with a BESS, self-consumption, load management, and, where possible, the active consumer’s participation in new market mechanisms. Such a model benefits both the household itself and the power grid.”
Vladislav Sokolovsky also emphasizes that a residential solar power plant is a long-term investment. And for such an undertaking, a stable regulatory environment is essential.
“The state can and must improve regulations, eliminate opportunities for abuse, and adapt the market to new technologies. But at the same time, a fundamental principle must be upheld: the legal rights of a bona fide investor and the obligations the state assumed at the time the investment was made must be protected,” emphasizes Vladislav Sokolovsky, Chairman of the Board of the Ukrainian Solar Energy Association.
It is precisely the predictability of the rules, in his view, that will determine whether Ukrainians will continue to invest their own money in distributed generation, energy storage, and the energy resilience of their households and the country as a whole.
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