How Businesses Can Obtain Grants and Preferential Loans for Solar Panels

I often speak with entrepreneurs, and lately, the main topic of conversation has been neither taxes nor logistics, but electricity. More precisely, its absence and its cost. When your workshop shuts down because of a power outage and electricity bills keep rising, you inevitably start looking at the roof of your business premises. Could it start generating income for you?

In this article, I'll explain how to reduce your dependence on power outage schedules and high electricity tariffs. You'll learn how the government and banks can help finance the installation of solar power systems and what grants may be available.

Today in Ukraine, generating your own electricity is not about "ecology" or "trends" — it's about survival and operational stability. When you have your own solar panels, you're effectively buying insurance against energy disruptions.

Why businesses are actively investing in solar energy:

1. Energy independence. You become less dependent on the stability of the national power grid. Even during severe blackouts, your office, server room or critical production line can continue operating. This directly reduces losses caused by employee downtime and spoiled raw materials.
2. Lower electricity costs. The cost of electricity from the grid for businesses has long passed the point where generating your own power becomes cheaper. While solar energy used to be an "expensive luxury", it is now a way to reduce your production costs.
3. Predictability. You effectively lock in the cost of your electricity for the next 20–25 years — the period during which high-quality panels can operate reliably. While grid electricity tariffs rise unpredictably, the cost of your solar-generated electricity remains stable.
4. Reputation and exports. Green energy is becoming an increasingly strict requirement for many international partners. If you export to the EU, European environmental requirements are becoming increasingly important for certain export-oriented industries.

It seems the government has finally reached a practical conclusion: without a stable electricity supply, businesses simply cannot survive in the current environment. As a result, support mechanisms have emerged that would have seemed unrealistic just a few years ago. In particular, the focus has shifted towards developing green energy through affordable financing.

The key instrument here is the Affordable Loans 5–7–9% programme. It allows businesses to obtain financing for installing solar panels and related equipment on relatively favourable terms. Importantly, this includes not only the panels themselves but also battery storage systems, without which a solar installation cannot provide full energy autonomy.

In addition, many regions offer local support programmes, which are often underestimated. It's worth checking the websites of your city or regional council — you may find compensation schemes that cover part of the project cost or reduce the interest rate. As a result, financing may turn out to be significantly cheaper than it initially appears.

Here are the main ways you can finance the installation of a solar power system:

1. Own capital. The fastest option, without bank paperwork. However, it ties up significant working capital that could otherwise be spent on purchasing goods or marketing.
2. Loan financing. This is the most balanced option. The bank finances the equipment, and you repay the funds gradually. Essentially, you replace payments to your electricity supplier with loan repayments while becoming the owner of an asset.
3. **Grant programmes. **Non-repayable financial assistance from international partners. Although grants are harder to obtain due to competitive selection, they can cover a significant share of the costs.
4. Partnership programmes. The bank works with trusted partners who handle the entire process — from equipment selection to installation, connection and maintenance.

Often, the best result comes from combining several options: for example, 30% of your own funds plus 70% financed through a preferential loan. Another option is to obtain a grant for expensive battery storage systems while financing the solar panels themselves through a loan.

Today, obtaining financing for solar panels is much easier than it was two years ago. Banks have learned how to assess this type of asset: it is straightforward, has a clearly defined payback period and can serve as good collateral.

The most popular option is a specialised solar panel loan under the 5–7–9% programme.

What are the terms?

• Loan amount. Different financial institutions offer different amounts depending on the size of the business and lending conditions. This makes it possible to implement projects ranging from a small vehicle repair workshop to a large logistics centre.
• Loan term. Usually up to 5–7 years. This allows repayments to be spread out so they do not put excessive pressure on the company's cash flow.
• Collateral. Most often, the solar power system equipment itself serves as collateral. You do not necessarily have to pledge property or other valuable assets. However, this depends on the loan amount and the specific bank.

The idea is simple: you redirect your electricity budget towards purchasing your own power station. Once the loan is fully repaid, the electricity you generate will cost you practically nothing.

Grants are an attractive but demanding financing instrument. They are not awarded "just like that", but they are certainly worth applying for. International donors operating in Ukraine include government agencies and international organisations.

What you need to know about grants:

• Purpose of funding. Grants are rarely awarded simply for purchasing "solar panels". They often support comprehensive energy system upgrades or the introduction of innovative energy-efficient technologies that deliver measurable reductions in emissions.
• Co-financing. Almost no one provides 100% of the funding. Usually, you must contribute 30–50% of your own money. This demonstrates your commitment to the system's long-term operation.
• Reporting and transparency. You will need to provide documentary evidence that you have actually achieved the promised electricity savings. Grant providers value measurable results and proof of effectiveness.

I recommend regularly checking the Diia.Business portal, where current grant competitions for small and medium-sized businesses are published. Sometimes, programmes specifically targeting affected regions or particular industries, such as manufacturing and processing, become available. For example, an energy resilience assistance programme for sole proprietors is available until 31 May.

Another effective financing option for businesses is partnership programmes between banks and suppliers or installers of turnkey solar power systems and energy independence solutions. Under these programmes, banks cooperate with trusted partners who handle the entire project — from consultation and equipment selection to procurement, installation, connection and ongoing maintenance.

Thanks to wholesale purchasing arrangements, special supplier discounts and integration with government financing programmes, the project cost for a business is often significantly lower than when organising equipment procurement and installation independently.

Additional advantages include shorter implementation times, a simpler process for the business and the opportunity to combine partner discounts with preferential government loan programmes. This makes investments in energy independence more affordable and economically efficient.

I've prepared a short general guide that you can adapt to your specific business:

1. **Energy audit and feasibility study. **Find an experienced engineering company. Its specialists should calculate the roof's angle, assess potential shading from neighbouring buildings and determine how many kilowatts the system can realistically generate.
2. Choosing reliable equipment. Don't try to save money on inverters. Solar panels are the system's "muscles", while the inverter is its "brain". If the "brain" fails, the entire installation becomes nothing more than a collection of glass panels on your roof.
3. **Applying to a bank. **Submit an application for energy project financing. The bank will need a business plan and a cost estimate from your contractor. Demonstrate how savings on electricity tariffs will cover the loan repayments.
4. Applying for a grant. If relevant programmes are available, apply for them at the same time. A positive lending decision from a bank is often an advantage when applying for a grant, as it confirms your financial reliability.
5. Installation and commissioning. Once financing is approved, the contractor installs the system. It is important to ensure that the contractor holds all the necessary licences and permits.
6. Legal formalities. Complete commissioning procedures and obtain all permits required to operate the system alongside the electricity grid. This will allow you to consume your own electricity while keeping the grid as a backup.

When discussing investments in solar panels, the main question is: when will the money return to your pocket? Before 2022, the payback period for commercial solar power systems was 5–6 years. Today, due to the continuous increase in electricity transmission and distribution tariffs, this period has shortened to 3–4 years.

If you also secure a grant covering at least one-third of the cost, the payback period for solar panels becomes exceptionally attractive — just 1.5–2 years.

Quite a few projects have failed because of mistakes made at the very beginning. Here are my main warnings:

• Lack of online monitoring. If you cannot monitor electricity generation in real time through an app, you may only discover a blown fuse a month later, when you receive an enormous electricity bill.
• Incorrect capacity calculations. There is no point installing a 100 kW system if your office consumes only 20 kW and you cannot sell the surplus electricity. Your money should be working for you, not sitting idle on the roof.
• Roof condition. Before installation, thoroughly inspect your roof. If it starts leaking after a year, dismantling and reinstalling hundreds of panels could cost you as much as one-third of the entire system.

Energy independence is a real tool for improving your competitiveness. You can continue paying high electricity tariffs and hoping there will be no blackouts, or you can turn your roof into a source of income. Given the rapid development of alternative energy and the financing conditions offered by banks under the 5–7–9% programme, now is an excellent time to get started.

Translation into English was created with the help of artificial intelligence.