Ten years ago, investments in solar energy were considered an experiment or a manifesto of environmental activists. Today, it is one of the most stable and promising sectors for long-term investments, independent of political situations, as a new global energy architecture is being formed. As an investor personally active in the energy market, I can say that there is very good money to be made. However, there are sometimes over-regulated or even legally unwritten procedures in this field. Therefore, we are now creating a new history of Ukraine’s energy independence.
Last year, solar generation in the EU accounted for 11.1% (304 TWh) of total electricity production, overtaking coal (269 TWh). And this share is growing every year. Governments, including Germany, Poland, France, Spain, and Italy, have announced ambitious plans to gradually transition to clean energy over the coming years.
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Ukraine is also moving in this direction. Despite the war and challenges, the solar energy market is showing signs of recovery. Currently, special attention is being paid to local initiatives – solar power plants for communities, agricultural enterprises, and residential complexes.
Benefits of investing in solar energy
The unstable situation in the Middle East, where significant sources of global oil production are concentrated, has a major impact on economic indicators. Stock markets, real estate values in the region – all of these are highly sensitive to military-political events, or even just statements. We remember how Elon Musk could collapse or, conversely, boost the price of cryptocurrencies with one tweet. Such fluctuations are hardly what people want to see when investing their money.
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At the same time, the sun, wind, and water – sources of renewable energy – guarantee stability.
The price of solar energy is not directly affected by fluctuations in oil or gas markets, by loud political statements, or by the availability of fossil fuels. It is a natural source of energy that has no “owner.”
After the initial investment, maintenance costs are minimal. A typical solar power plant pays for itself in three to sex years. This means not only providing electricity to your household or business, but also participating in the energy market.
Ukraine has a state program called the Green Tariff, under which electricity is purchased from the owners of solar power plants. For commercial solar power plants, the tariff will be formed on a competitive basis through auctions.
In addition, facilities with their own solar power supply systems have higher market value.
The environmental component is more than just an image
Corporations that use renewable energy have a higher reputation in the market, attract conscious customers, and more easily receive financing from “green” funds. After all, solar energy has no side effects such as CO2 emissions or land pollution.
Growing demand
According to the International Energy Agency (IEA), by 2030 more than 30% of the world’s electricity will come from renewable sources. Governments are introducing incentives, simplifying licensing, and offering subsidies for the installation of solar power plants.
In addition, the growing area covered by solar panels is forcing electricity producers to look for new sites. Floating power plants have become widespread in Austria and the Netherlands, mostly using artificial reservoirs. In Ukraine, solar and wind power plants are also gaining popularity.
Solar energy investment options
Your own solar power plant (private or commercial) – you invest in equipment and infrastructure, generate energy, and sell it to the grid or use it yourself. Investing in agro-solar projects – solar panels are placed over farmland, so the land is used simultaneously for food and energy production. Participation in cooperatives or funds – you invest in a joint solar power project together with other investors. Investments in infrastructure or equipment suppliers — manufacturers of panels, inverters, and storage systems, which shape the industry ecosystem.
You can become an investor in solar energy in Ukraine with a starting capital of just a few thousand euros – everything depends on the area of installed panels and, accordingly, the power of the plant. The more kilowatts your solar power plant generates, the shorter the payback period, usually three to six years.
Risks — and why they are controllable
Of course, no investment is completely risk-free. Solar energy has its risks:
The initial investment is high, but it is a one-time cost. Weather dependence can be compensated by new energy storage systems (batteries). Regulatory changes are possible, but rarely retroactive. Local risks (for example, in Ukraine – security risks) can be partially offset by diversification (investing abroad or in several projects).
However, the main thing to understand is that the demand for clean energy has already become a global trend, not a political project. This is not a fad – it is a new reality.
Conclusions
The world is changing rapidly. The move away from fossil fuels, the pursuit of energy independence, and climate change – all of these factors work in favor of solar energy.
As a successful investor with many years of experience, I see not only financial potential, but also long-term stability. Solar energy – which is plentiful in Ukraine – is an investment not only in profit, but also in a safe, clean future.
And remember the golden rule of any investment: the sooner you join the game, the more you win!
The views expressed in this opinion article are the author’s and not necessarily those of Kyiv Post.
