Green Tariff for Electricity in Ukraine

What is a Green Tariff?
A green tariff is a system where Ukraine buys electricity produced from renewable sources at an elevated price. Since 1997, this program has supported the use of energy derived from solar, wind, and water sources. It allows homeowners and businesses that generate electricity using alternative sources to earn a profit. The green tariff in Ukraine is one of the highest in the world, 4-5 times higher than the cost of regular electricity.

Green Tariff Cost
The tariffs for green electricity are calculated and regulated by the National Commission. The cost varies depending on the type of energy source, the age of the energy system, and the status of the counterparty (individual or legal entity).

Current Tariffs as of 31.03.2021 (excluding VAT):

  • Solar Energy (up to 30 kW):

    • 01.04.2013 to 31.12.2014 — 1189.11 kopecks/kWh
    • 01.01.2015 to 30.12.2015 — 1069.48 kopecks/kWh
    • 01.07.2015 to 31.12.2015 — 664.18 kopecks/kWh
    • 01.01.2016 to 31.12.2016 — 630.26 kopecks/kWh
    • 01.01.2017 to 31.12.2019 — 599.91 kopecks/kWh
    • 01.01.2020 to 31.12.2024 — 539.20 kopecks/kWh

  • Wind Energy (up to 30 kW):

    • 01.07.2015 to 31.12.2019 — 385.66 kopecks/kWh
    • Up to 50 kW:
      • 01.01.2019 to 31.12.2019 — 385.66 kopecks/kWh
      • 01.01.2020 to 31.12.2024 — 346.38 kopecks/kWh

  • Combined Energy Systems (up to 50 kW):

    • 01.01.2019 to 31.12.2019 — 542.77 kopecks/kWh
    • 01.01.2020 to 31.12.2024 — 407.08 kopecks/kWh

Despite the gradual reduction in compensation for green electricity, this is still a profitable direction as the cost of equipment for generating energy from alternative sources has significantly decreased. While solar panels previously cost several hundred dollars, today their price has dropped to less than one hundred dollars. Thus, alternative energy becomes an attractive investment and business for homeowners.

How to Participate in the System?
To participate in the green tariff system, you need to go through a procedure to complete the documentation and install the equipment. The process includes several steps:

  1. Purchase special equipment for generating alternative energy.
  2. Install the electrical system.
  3. Prepare the documentation for connection to the green tariff and submit it to the Oblenergo.
  4. Agree on the energy system.
  5. Pay for Oblenergo services.
  6. Sign a purchase agreement for electricity at the green tariff.
  7. Install a bidirectional meter to account for the energy.
  8. Start operating the system.
  9. Open a bank account to receive income from the green tariff.

Differences for Individuals and Legal Entities
There are stricter requirements for the installation of energy systems for individuals. The green tariff is only available if solar panels or wind turbines are installed on the facades of buildings. Legal entities, however, have the option to use biogas, geothermal, and hydroelectric systems.

Conclusion
Renewable energy sources are beneficial not only for homeowners, creating complete independence from the state, but also as a profitable business. After the significant reduction in the cost of solar panels, installing a system at your home has become more affordable. It does not require significant ongoing expenses and begins to pay for itself within 3-4 years, after which it generates pure profit. However, it is important to keep in mind that tariffs and legislation can change, so relying solely on this income source may not be advisable.