Ukraine To Add 1.5 GW Of Solar Photovoltaic Capacity in 2025

​Ukraine to Add 1.5 GW of Solar Photovoltaic Capacity in 2025, with Rapid Deployment of Energy Storage Projects

 

The Ukrainian Solar Energy Association estimates that Ukraine will add approximately 1.5 GW of solar photovoltaic capacity in 2025. This data is based on the association's market analysis; official statistics are incomplete because commercial and industrial enterprises and residential users installing self-consumption solar PV are not required to register their power generation capacity. Ukraine added approximately 800 MW of solar photovoltaic capacity in 2024, and the 2025 growth will bring the country's cumulative solar photovoltaic capacity to over 8.5 GW.

 

In 2025, the development of commercial and industrial and utility-scale solar photovoltaic projects will be most significant, especially integrated solar-energy storage projects combined with battery energy storage systems, while the residential market will remain stable. Ukraine's first megawatt-scale battery energy storage project was put into operation last year, and hybrid solar-energy storage systems have been deployed in industrial, agricultural, municipal, and residential users. The country's largest battery energy storage project to date was connected to the grid in September 2025. These projects benefited from a policy implemented since July 2024 and extended to 2028, which exempts photovoltaic modules and battery energy storage systems from value-added tax and import duties. Last year, Ukraine also launched a preferential loan program for the construction of photovoltaic power plants and energy storage systems through state-owned banks and provided grants through the Ukraine Decarbonization Fund.

 

Power shortages and outage risks are key market drivers in 2025 and will continue this year. Further expansion of integrated photovoltaic-energy storage projects is expected as businesses and communities continue to seek energy autonomy and independence. Another market driver comes from the development of the ancillary services market, with frequency containment reserves and automatic frequency restoration reserves offered under five-year contracts denominated in euros. A company that won a long-term purchase through an auction held by the state-owned transmission system operator NPC Ukrenergo in 2024 installed 398 MW of energy storage capacity last year. The association recommends further development of the ancillary services market and simplification of grid connection and permitting procedures for photovoltaic-energy storage projects, while also recommending legislation to implement an effective war risk insurance mechanism and develop auction mechanisms and power purchase agreements (PPAs). The association considers 2025 a "turning point" for the Ukrainian photovoltaic market and expects new photovoltaic installations in 2026 to exceed those of 2025, with at least 1.5 gigawatts of new photovoltaic capacity and more than 3 gigawatt-hours of battery storage added by the end of the year. Despite the state of war, the market has demonstrated high resilience and investment attractiveness, especially in the areas of hybrid and distributed solutions.