Green Energy in Ukraine: Economic Assessment of Solar Technologies Implementation

Abstract

The article addresses the economic assessment of introducing solar technologies as an essential component of green energy development in Ukraine. The issue is considered through the prism of the impact of solar generation on enterprise cost optimisation, energy independence, and increased resource efficiency. In the context of martial law and the destruction of the centralised energy infrastructure, the issue of decentralising electricity generation and transitioning to renewable sources is of particular practical importance. Based on a financial and economic model, the optimal parameters for a solar power plant (SPP) for a medium-sized enterprise are determined. The key indicators, in particular, the payback period by static and dynamic methods, are calculated. The plant's capacity is determined based on the enterprise's seasonal insolation and consumption structure. The results of the study demonstrate high profitability and rapid return on investment in SPP, provided that the capacity is appropriately configured to the consumption structure. Attention is paid to the model's sensitivity to changes in WACC and inflation, as well as to scenarios of overcapacity installation, which result in a decrease in profitability due to a generation surplus. The potential benefits and limitations of projects are assessed, in particular, the threat of reduced economic efficiency when the optimal installed capacity is exceeded without sufficient consumption. A model for evaluating the economic feasibility of SPP investments is presented, accounting for consumption, seasonality, equipment degradation, and the time value of money. The study confirms the financial feasibility of transitioning to green energy at the individual enterprise level. The results show high profitability for such investments, even under conservative estimates. However, it is emphasised that the optimal SPP capacity should be chosen to account for individual consumption characteristics to avoid energy overproduction.