Solar Panel Business: How to Set It Up and Calculate Liquidity

Starting a solar panel business in Ukraine is a strategic decision that ensures not only profit but also energy independence. Given the unstable energy supply, owning your own solar power plant (SPP) becomes a reliable asset. Below, we’ll take a detailed look at how to draw up a business plan, what documents are required to install solar panels, and how to calculate a project’s profitability. This guide will be useful for business owners planning to invest in renewable energy.

Business Plan: Solar Panels

A well-written business plan is the foundation of a successful solar energy project. Such a document helps assess the investment amount, potential revenue, and payback period.

Where to Start

Before calculating the cost of installing solar panels, you need to resolve legal and organizational issues. First, you need to officially register your business. For the production and sale of electricity, a Group III sole proprietorship or a limited liability company (LLC) is suitable. Next, you should select the appropriate economic activity code. The primary KVED code for solar panels is 35.11, “Electricity Production.” If you also plan to install solar systems for customers, you should add KVED code 43.21, “Electrical Installation Work.”

As for the documents required to install solar panels, a license to generate electricity is not required for systems with a capacity of up to 150 kW. Most beginners do not reach this level of generation.

It’s also worth finding out whether you need a permit to install solar panels in your region. In practice, there are no special requirements for small private solar power plants. However, to connect to the grid and sell surplus electricity under the “green” tariff, you must obtain technical specifications from the regional power company and enter into a contract with it.

Let’s calculate the initial costs

The cost of commissioning a solar power plant depends on its capacity, the equipment manufacturer, and the complexity of the installation work. Before starting the project, it is important to understand how to size solar panels for optimal performance—taking into account the tilt angle, orientation, panel type, and other technical parameters.

A rough estimate for a 100 kW station—a common option for medium-sized businesses—shows a significant but justifiable investment. The total cost can range from $50,000 to $55,000. These funds are allocated to several key categories. The main components that make up the project budget are:

1. Solar panels. This is the largest portion of the cost, which depends on the brand and technology you choose (for example, Longi, JA Solar).
2. Inverters. Devices for converting direct current to alternating current.
3. Mounting systems. Structures for installing panels on roofs or on the ground.
4. Cables, wires, and automation products. Includes all necessary connection and protection components.
5. Design and installation. Payment for the services of engineers and installers.
6. Document processing. Costs associated with obtaining permits and connecting to the grid.

The figures provided are approximate. To obtain an accurate estimate, we recommend contacting several system integrators for commercial proposals so you can compare the terms and choose the best option.

Calculating Future Investments

Operating a solar power plant requires certain regular investments to maintain its efficiency and longevity. Although these amounts are significantly lower than the initial costs, they must be factored into the business’s financial model. Operating expenses ensure the stable operation of the equipment and minimize the risk of downtime. They typically amount to about 2–3% of the plant’s initial cost per year. The main components of operating expenses are:

1. Maintenance. Regular inspection of connections, diagnostics of the inverter and other equipment. Performed 1–2 times a year.
2. Cleaning the panels. Washing the surfaces to remove dust and dirt to maintain maximum power output, especially after winter or dust storms.
3. Insurance. Protection of the station against natural disasters, vandalism, and other unforeseen events. The cost of the policy is approximately 1–2% of the equipment’s value per year.
4. Scheduled replacement of components. Most often, this applies to the inverter, which typically has a service life of 10–15 years. Its replacement should be factored into the long-term budget in advance.

Timely funding for these areas ensures that the SES will operate at maximum efficiency throughout its entire service life, which can be as long as 25 years or more.

Are Solar Panels Cost-Effective?

The question of whether it is profitable to install solar panels is a key consideration for any investment project. In the case of solar energy, the answer is generally yes, since a solar power plant generates profit in two main ways:

1. Savings on your own electricity consumption. By using solar energy, businesses become less dependent on rate fluctuations and potential power outages.
2. Sale of surplus generated energy to the public grid at the “green” tariff.

Many property owners wonder whether it’s worth installing solar panels Given the constant rise in electricity prices—and calculations show that this is indeed the case—the payback period for a solar power plant in Ukraine can range from 2.5 to 7 years, depending on the plant’s capacity, the region, and the amount of self-consumption. The initial investment may seem substantial, but modern financial instruments help address this issue.

A great example is the case of the Kyiv homeowners’ association “Karat 37.” According to board chairman Vasyl Lytvyn (@lytvynvm), residents of the 21-story building decided to install a solar power plant to ensure the elevators could operate independently during blackouts. To avoid spending large sums of their own funds, the organization used our eDilo service to pay for the equipment and installation in installments, in collaboration with our partner, AKADEM INVEST LLC. This case demonstrates how even a nonprofit organization can invest in cost-effective solar panels.

Solar energy is becoming increasingly accessible. The combination of cost savings, additional income, and affordable financing solutions makes the solar panel business an attractive and strategically important investment in today’s Ukrainian context.

Rules for Installing Solar Panels

To ensure that the station operates efficiently and safely, it is important to follow the installation guidelines for solar panels. This guarantees safe operation and maximum system performance throughout its entire service life.

Types of Solar Panels

The three most common types of solar panels are:

1. Monocrystalline. They offer the highest efficiency (18–23%) and a long service life. Thanks to their compact size, they are an ideal solution for limited spaces, such as rooftops. They are the most expensive.
2. Polycrystalline. They have a slightly lower efficiency (15–18%), but are cheaper to manufacture. They are a good choice for large ground-mounted power plants where space is not a critical factor.
3. Thin-film (amorphous). These have the lowest efficiency (6–10%), but perform well in diffuse light and at high temperatures. They are used less frequently, primarily in specialized projects.

Once you understand the differences between the various types of panels, you can select the optimal equipment that will meet your project’s goals and deliver the best financial results.

How far from the property line can solar panels be installed?

People often wonder how far from the property line solar panels can be installed without violating the law.

The main requirement concerns the distance to the boundary of the neighboring lot. According to current regulations, the ground-mounted structure of a solar power plant must be located at least 1 meter from the boundary. There are several reasons for this requirement. First, it ensures unobstructed access for maintenance and any necessary repairs to the equipment. Second, it prevents shading of the neighboring property, which could lead to disputes.

In addition, it is also important to maintain fire separation distances between the station’s structures and other buildings on the site. Failure to comply with these rules may result in fines and orders to dismantle the structure.

Where Can Solar Panels Be Installed?

The answer to the question of where solar panels can be installed depends on the specific conditions of the site and the available space. Panels can be installed on both sloped and flat roofs; however, it is essential to assess the structural load-bearing capacity before beginning work.

Another option is ground-mounted installations. This is the best choice for large solar power plants when there is open space available. This type of installation allows the panels to be positioned at the ideal angle to the sun for maximum energy generation throughout the year. Less common but promising is installation on building facades, which is often used in densely built-up urban areas.

What You Need to Install Solar Panels

Let’s talk about what’s needed to install solar panels. The foundation of any solar power plant is the panels themselves, which generate direct current. However, to convert this to alternating current suitable for use on the grid, a grid-tied inverter is required—this is the core of the system. The next important element is the mounting system, which securely fastens the panels to the roof or the ground and withstands wind and snow loads.

The system also includes cables to connect all components, automation equipment, and protective devices that safeguard the station against power surges and short circuits.

Prospects for the Development of the Solar Panel Business in Ukraine

The development of solar energy in Ukraine has significant potential, driven by both global trends and domestic economic and security factors. The pursuit of energy independence and the decentralization of the power grid is becoming a powerful incentive for businesses to invest in their own power generation.

The government and international partners offer various support programs, such as preferential loans, grants, and equipment cost reimbursements, which lower the barrier to entry into this business. Although the “green tariff” mechanism may face payment instability, it remains an effective tool for generating revenue. In the long term, the cost of electricity from traditional sources is likely to rise, making on-site generation even more profitable.

To implement projects solar-powered business projects, it is not It is always necessary to withdraw funds from circulation. Modern financial instruments, such as eDilo online service, allow customers to pay for equipment and installation in installments. This makes investments in solar energy accessible even to small and medium-sized businesses, accelerating the transition to energy independence.

Despite the existing challenges, the solar panel industry in Ukraine remains one of the most promising sectors. It not only brings economic benefits to individual companies but also contributes to strengthening the energy security of the entire country.