Investments in Energy Without Illusions

An honest conversation about PV plants, BESS, and real market returns

The energy market in Ukraine is changing faster than ever. Solar power plants (SPP) and battery energy storage systems (BESS) have ceased to be an “enthusiast’s exotic niche” and have become a fully-fledged investment asset with predictable economics, real cash flow, and strategic value for businesses.

However, alongside growing interest, the number of investor questions is also increasing.
Is it worth entering the market now? Are 20% annual returns realistic? What will happen after the “green” tariff ends? And will BESS become an expensive asset with problematic service in a few years?

We have collected the most common questions that SOLARsk clients ask today and asked company experts to provide honest professional answers — without embellishment and without “marketing optimism”.

1. A ready-made SPP as an investment asset

Passive income or overstated expectations?

SOLARsk expert answer:

The modern market has long moved beyond the classical “green tariff” model. Since 2022, new industrial SPPs have mostly operated through the day-ahead market, the balancing market, or trader contracts.

This is exactly why a professional approach to a project starts with a proper financial model, scenario analysis, and risk assessment.

A ready-made plant has a key advantage: its economics are already confirmed by actual generation data and real cash flow movement. The investor sees not “presentation figures,” but a real operating history of the asset.

What happens after the “green” tariff ends?

SOLARsk expert answer:

The energy market is already moving toward flexible generation models, where the key role is played not only by SPPs but by the combination of SPP + BESS.

It is precisely the combination of generation and energy storage that creates a long-term efficient asset.

Plants currently operating under the “green” tariff have a strategic advantage: before the tariff ends, they manage to generate profit that can later be reinvested into energy storage systems and asset modernization.

In other words, the “green” tariff is not a final model, but an entry stage into the market.

2. BESS — the new center of energy profitability

Why energy storage systems have become a strategic asset?

SOLARsk expert answer:

This is exactly why it is critical to work not with the “cheapest solution,” but with manufacturers that have real service support in Ukraine.

An energy storage system is a long-term infrastructure asset. And service issues here are more important than initial CAPEX savings.

A key upcoming trend is the shift toward more centralized management of energy assets through EMS systems. Therefore, modern BESS solutions must be adaptable for integration into the new energy market architecture.

Do batteries really degrade quickly?

SOLARsk expert answer:

Degradation is a natural process for any battery system. But the key issue is not degradation itself, but the economics of operating the asset throughout its lifecycle.

Modern BESS systems are designed for approximately 7,000 charge-discharge cycles. Even after the warranty period ends, the battery retains about 70% of its initial capacity and continues to generate profit.

With a properly designed operating model, ROI of such projects today is approximately 5–6 years, making BESS one of the most attractive instruments in the energy market.

3. Are 20% annual returns realistic?

Where marketing ends and economics begins

SOLARsk expert answer:

20% is not a guaranteed scenario, but the upper bound of returns under favorable market conditions.

A professional project evaluation model always includes:

• base case scenario
• conservative scenario
• optimistic scenario

Even in a conservative scenario, modern energy assets in Ukraine still deliver around 12–14% annual return in foreign currency terms, which significantly exceeds traditional investment instruments.

The key advantage of energy investments is that the investor receives not only returns but also a physical asset with long-term value.

Will market margins decline due to saturation?

SOLARsk expert answer:

This is a fair observation — and the market is indeed gradually moving toward European-level margins.

However, there is a fundamental difference between Ukraine and mature EU energy markets today:
Ukraine still faces a generation deficit, a damaged energy infrastructure, and demand that outpaces supply for years.

Therefore, market saturation is not a “tomorrow” scenario or even a near-term (1–2 years) outlook.

The key advantage for investors entering today is that before margins gradually decline, such projects will already:

• recover CAPEX
• generate stable cash flow
• move into a profitable operating phase even at lower returns

And frankly — the question is not whether profitability will decline in the future.

The question is who will manage to secure their position before this “window of opportunity” begins to close.

4. Western and Central Ukraine — a new energy geography

Safety or maximum generation?

SOLARsk expert answer:

There is indeed a difference in energy yield between Western and Southern Ukraine, averaging 10–15%.

However, modern investors evaluate not only generation but also operational continuity risk.

Lower generation in a stable region is often economically more attractive than maximum output in a high-risk area.

Will grid capacity be sufficient in the future?

SOLARsk expert answer:

This is why it is critical today to evaluate not only the asset itself but also its grid connection parameters.

A high-quality energy asset includes:

• confirmed technical conditions
• real available capacity
• a clear scaling perspective

Moreover, the development of BESS is becoming one of the solutions to grid congestion. Energy storage significantly increases asset flexibility and improves interaction with distribution system operators.

Conclusion

Ukraine’s energy market is entering a transformation phase: from a “high-margin” market it is gradually becoming a market of professional long-term investments.

That is why today the winner is not the one who waits for the “perfect moment,” but the one who:

• correctly assesses risks
• works with professional partners
• treats energy as a strategic asset, not a short-term speculation

And most importantly — understands that the current investment window with today’s returns will not stay open forever.