Green tariff – earnings on renewable energy
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The concept of a green tariff is enshrined in the law on electricity: it is a tariff at which the wholesale Ukrainian energy market must buy electricity produced at electricity facilities from renewable energy sources (including solar and hydropower). Electricity suppliers must purchase it in cases, volumes and at prices determined by the National Electricity Regulatory Commission of Ukraine (NERC). That is, the green tariff in Ukraine is a mechanism to encourage citizens to produce electricity from renewable energy sources.
Consider briefly how you can make money on private power plants. The legislation of Ukraine prescribes 2 options for the installation of electric photovoltaic cells: on the territory of a private household (up to 30 kW) and in the form of business projects (up to thousands of kilowatts). Investments in such projects differ significantly, and the necessary documentation is also different. It is clear that the time for projects will also not be the same.
Rates for “green kilowatt”
Rate of “green” tariffs in 2016-2019 according to the resolution of the NERCEC of June 30, 2016 № 1188.
Private sector
For solar panels
The following cost of one kilowatt of solar energy (according to the resolution of the NERCEC under the number of one thousand one hundred and eighty eight, which came into force on August 16, 2016):
- from January 1, 2016 to December 31, 2016 – 534.43 kopecks / kWh (excluding VAT);
- from January 1, 2017 to December 31, 2019 – 508.69 kopecks / kWh (excluding VAT);
- from January 1, 2020 to December 31, 2024 – 457.22 kopecks / kWh (excluding VAT);
- from January 1, 2025 to December 31, 2029 – 407.26 kopecks / kWh (excluding VAT).
For wind generators
- from July 1, 2015 to December 31, 2019 – 327.02 kopecks / kWh (excluding VAT);
- from January 1, 2020 to December 31, 2024 – 293.71 kopecks / kWh (excluding VAT);
- from January 1, 2025 to December 31, 2029 – 261.92 kopecks / kWh (excluding VAT).
For legal entities and businesses
As for generation on an industrial scale, it takes into account the year of construction and placement of alternative energy sources.
In addition, the mandatory condition for industrialists concerning domestic equipment has been abolished. Today, business owners have the right to use devices from any foreign brand.
At the same time, the installation of domestic batteries or wind generators is now stimulated at the state level by increasing tariffs by 5-10%.
To get a higher rate, you need to use in installations up to 30-50% of domestic nodes. That is, to use Ukrainian solar panels or wind generators is economically profitable.
Tariffing for solar panels on the ground:
- 2016 – 0.16 euros;
- 2017-2019 – 0.15 euros.
Tariffing for solar panels on the roof:
- 2016 – 0.172 euros;
- from 2017 to 2019 – 0.163 euros.
Important points of the green tariff
In the calculation of the cost of a kilowatt of energy produced on an industrial scale, special coefficients are used.
The existing retail price is multiplied by a certain factor – as a result, the cost of a kilowatt is determined by the “green” tariff.
Changes in the coefficient depending on the energy source:
- alternative energy facilities of the terrestrial type – 4.8;
- installations mounted on roofs with a capacity of 100 kilowatts – 4.6;
- installations mounted on the roofs and facades of buildings with a capacity of less than 100 kilowatts – 4.4.
Meters made by Ukrainian manufacturers are used to measure electricity. Models of reversible type on one or three phases are established.
It should be noted that the rate is fixed once – at the time of concluding a contract with a local state-owned energy company. Further reduction of owners’ tariffs will not apply.
Power requirements for equipment producing electricity Power
restrictions apply only to private homes and households. Until recently, the permissible maximum was 10 kilowatts.
From 2016, private property owners can safely buy more powerful solar panels – the upper limit for these devices is 30 kilowatts per hour. The same applies to wind turbines.
For obvious economic reasons, there are no restrictions for businesses. For them, the possibilities of their own budget will be crucial, from which investments will be made in the system of alternative energy supply.
Procedure for obtaining a green tariff for private individuals
Any civilian has the right to install generating capacity for electricity generation in private ownership. In this case, the amount of electricity produced should not exceed the norm established by the contract on the use of electricity. A citizen has the right to sell electricity to energy suppliers at a green tariff in excess of the monthly norm of personal consumption. You don’t need any licenses, you don’t need to follow the additional “instructions” of local officials – you just put your own electricity generating capacity and start earning a green tariff. Payments for electricity and the procedure for issuing a green tariff, as well as the procedure for energy accounting and its sale are approved by NERC.
To issue a green tariff in Ukraine in 2018, it is necessary to perform a number of actions:
- Purchase and install an electrical installation (wind turbine, photocells or others) with a capacity of not more than 30 kW.
- Submit an application and connection scheme to the local office of the electricity supplier (oblenergo, rayenergo).
- To receive funds for electricity sold, an individual must open a bank account, the details of which are specified in the application.
- Agree on the wiring diagram of the power plant.
- Arrange a metering unit for privately owned electricity.
- Sign an additional agreement with the energy company for the purchase and sale of electricity generated by renewable energy sources.
More about the procedure for obtaining a green tariff for individuals.
Equipment for electricity generation using solar, wind and water energy is quite expensive and technologically complex, its selection and installation should be done by professionals. For example, to install photovoltaic cells to convert solar energy into electricity, you need to buy the solar panels themselves, mains inverter, protection equipment, metal structures, consumables (cables, mounts, connectors).
The benefit of connecting to the green tariff
Every year, the number of households that earn with the help of renewable electricity installations is growing. Some citizens install solar photovoltaic cells, which is especially convenient in the southern and eastern regions of Ukraine, where there are more sunny days. And where there are many windy days, it is more profitable to use wind turbines.
For residents of hilly and mountainous areas, where there are fast streams and small rivers, there is an option to build a mini-hydroelectric power plant. That is, each option can be implemented in certain natural areas. Of course, the cost of its own power plant, although small, is quite high: on average, a plant for generating 3-5 kW of electricity can cost 4-6 thousand conventional units, and larger units will cost up to 25-28 thousand USD.
Payback of solar power plants – about 5-6 years. This is not a small amount, but considering that you provide yourself with energy, do not depend on economic crises and fan outages, the advantages are obvious. Selling electricity at a green rate, you can earn up to five thousand USD. per year, depending on the capacity of your private power plant.
Currently, more and more citizens are interested in the green tariff in Ukraine. A number of the most enterprising people are already selling electricity generated in their own backyard, already in our region, and thousands of such installations throughout the country. This is a profitable investment and a stable way to earn money for everyone. And with our ready offers on a basic complete set of solar stations and the help in registration of the green tariff also it is easy!
Green tariff for legal entitiesgreen tariff for legal entities is
Theno less interesting. Organizing your own mini-power plants for a few hundred kilowatts is a great investment in our difficult times. A businessman can organize the production of electricity to ensure its production capacity and not depend on the central supplier, and sell the surplus at attractive prices at a green rate. Such investments pay off in 5-7 years. That is, the income will be about 400%, based on the average service life of solar panels of 25 years and current electricity prices.
In order for a legal entity to start working at a green rate, it is necessary to have a number of documents. The first thing to do is to get a feasibility study for a green tariff power plant. It can be used to assess the risks and benefits. This document contains basic information on the implementation of the business plan. In addition to the justification, you need to have information about the capacity of the power grid through which you plan to sell electricity.
The terrain, thetaken into account slope of the site to the sun, winds during the year, clouds and other natural features are. When planning to build a power plant, think seriously about registering a new legal entity – it will save you from a number of difficulties in the future. Finally, the equipment you buymust be certified and meet the requirements of Ukrainian standardization bodies.
The most popular questions about the “green” tariff
How to increase the profitability of a home solar power plant?
Some people think that investing in domestic solar energy is unprofitable due to the high cost of equipment and the relative cheapness of grid electricity. But this is not the case. To increase the profitability of the installation allows feed-in tariff, or “green” tariff: according to the owners of stations, the proceeds from the sale of surplus electricity offsets the cost of purchasing and installing SES for 5-8 years.
Who can use the feed-in tariff?
Only owners of private houses who have installed photo panels with a capacity of up to 30 kW on a private plot, facade or roof of a building can sell solar electricity to energy suppliers. The feed-in tariff program does not apply to photovoltaic high-rise systems. It cannot be used by owners of autonomous power plants, as such installations are not designed to connect to the general network.
Is it possible to get a soft loan for the construction of solar power plant under the “green” tariff?
Loans for the purchase and installation of solar panels at 0.01% per annum are issued by Ukrgasbank under the ECO-Energy program. The loan amount is UAH 1,000-1,000,001. Terms – 1-5 years. Under the terms of the bank, the own contribution should not be less than 15%. However, experts recommend taking a loan if the purchase is not enough 30-40%. In this case, the income from the “green” tariff fully covers the payments to the creditor. It is planned that from 2018 the situation with soft loans in Ukraine will become even better in connection with the launch of the Energy Efficiency Fund.
How long does it take to connect to the “green” tariff?
According to the law, after submitting the required package of documents, a three-week period is allotted for consideration of the issue. On the fact of registration by own forces lasts a month and a half. Companies that sell and install photovoltaic equipment often help speed up the connection process.
Why do feed-in tariff payments depend?
Rates are pegged to the euro, but the money to the current account of the station owner comes in national currency. The tariff grid in hryvnias is set quarterly by NKREKU. The amount of payments is also affected by the year of commissioning of the solar power plant, the presence / absence and the amount of the local component in the photovoltaic system (for the use of domestic equipment is a surcharge of 5-10%).
Do payout rates decrease over time?
According to European experts, the “green” tariff in Ukraine is one of the highest in the world. However, as everywhere, it is only an incentive tool, ie as the number of solar power plant increases, the amount of payments will decrease. The amount of charges directly depends on the year of commissioning of the facility, so the earlier the solar power plant is built, the more profitable it is.
Is it possible that the program will be frozen?
Feed-in tariff, as an incentive mechanism for the transition to alternative energy sources, has been widely used around the world for several decades. In Ukraine, such a program is enshrined in law, guaranteed by the state and is valid until 2030. In some regions, of course, there are delays in payments, but there is no question of waiving the tariff.
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