Choosing a solar power plant under the “Green Tariff” – iSolar blog

Solar power plant under the “Green Tariff”: save on bills, earn on sunlight

As solar energy is gaining considerable popularity in our country, many homeowners and entrepreneurs are now asking the following question: “What to do with excess electricity if it is too much for the needs of my home or company?” It is for such situations that the so-called “Green Tariff” has existed in the world since 1978, i.e. a system of compensation for electricity produced from alternative renewable sources.

In Ukraine, it has been in effect at the legislative level since 2008, but it was with the proliferation of solar power plants that the Green Tariff gained particular popularity. This happened sometime after 2015, when reliable but not too expensive solar energy technologies appeared on the market. At iSolar, we are proud to have contributed to the popularization of the Green Tariff idea in our country, and therefore we are dedicating our blog post to this very topic.

So, let’s figure out how to choose a solar power plant for the Green Tariff and what benefits you can get from its use.

What is the Green Tariff and what conditions does it offer to Ukrainians?

So, what is this famous “Green Tariff”? First of all, it is an economic instrument that introduces incentives for owners of renewable energy sources for generating and supplying electricity to state-owned networks.

That is, along with large energy production complexes, those who have installed a wind or solar power plant under the Green Tariff can also supply energy to public power grids.

In general, the US government was the first to apply this idea in 1978 to prevent the energy crisis that was emerging at the time, as well as to reduce the level of air emissions generated by thermal or nuclear power plants. Later, in 1990, Germany followed suit, and then other European countries.

In Ukraine, the law regulating the sale of electricity from private RES owners was adopted in 2008. A more advanced version was adopted in 2020. According to the law, any citizen or legal entity in Ukraine can become an electricity supplier and receive remuneration for this. To do this, you can install a wind power plant, a biofuel power plant, or, more affordable and simple, use a special solar power plant under the Green Tariff. As for the restrictions, only SPPs with a capacity of up to 30 kW (taking into account the inverter power) or with an inverter of up to 30 kW and a total panel capacity of up to 45 kW can be used for our energy market for household consumers. Currently, the tariff for 1 kWh is 590.24 kopecks. This price is fixed from January 1, 2024.

What are the benefits of the Green Tariff for SPP owners?

• Constant access to the public power grid.
• The ability to sell surplus electricity from its own SPP at a fixed tariff, which is quite high.
• Opportunity to receive constant passive income due to long-term contracts (the law provides for contracting supplies from private solar power plants for up to 10 years).
• Fast payback of SPP equipment compared to the payback of its autonomous use.

Therefore, if you decide to buy a solar power plant for your needs, you should also consider the possibility of expanding its functions from supplying a separate household to supplying the state power grid.

Which solar power plants under the “Green Tariff” are worth choosing?

Of course, in order for your SPP to supply enough electricity to sell, you need to think carefully about what equipment you should choose. What is important to consider?

• Solar power plants under the Green Tariff are exclusively grid-tied and hybrid-type solar power plants. Stand-alone SPPs cannot be used for this purpose.
• When choosing equipment for a solar power plant that will be connected to the Green Tariff, you should first of all take into account your electricity needs. The best idea is to sell the surplus energy generated. At the same time, if you plan to make the sale of renewable energy your business, you can also calculate the capacity of the equipment to generate electricity for the general grid.
• Remember that your solar power plant must meet the requirements of the state, which means that it is better if it is manufactured and installed by a company that knows these requirements and can select the optimal equipment.

This is exactly the kind of service you can get from iSolar. We work with the Green Tariff and select equipment from global manufacturers that will help our customers:

• accurately fulfill the state’s conditions for connecting the Green Tariff;
• receive full documentary support on the Green Tariff;
• to provide themselves with electricity in full;
• quickly recoup the funds invested in the solar power plant;
• to receive a stable profit from the sale of solar electricity.

Basic tips for connecting to the Green Tariff

Of course, simply buying and installing a solar power plant is not enough to become part of the electricity supply network under the Green Tariff. You need to get approval and sign an agreement with the local electricity regulator (e.g., the local Oblenergo). In addition, the use and commissioning of solar power plants under the Green Tariff for households and entrepreneurs have some differences.

If you want to connect to it as an individual, you will have to:

• to select and purchase the necessary equipment for the SPP;
• collect a package of documents and approve it at Oblenergo;
• sign a contract for supply under the Green Tariff.

In addition to these steps, companies must also develop project documentation and submit it to Oblenergo and obtain a license from the SACC. Of course, you can do this on your own, but the whole process can take a long time. If you turn to our specialists for help, you will save a lot of time, your own nerves, and avoid mistakes.