Estonia Solar Report

Gain comprehensive insights into the statistics and metrics surrounding the solar production industry in Estonia

  1. Eesti Rahvusringhรครคling (2023, January 26). Sun worth chasing in Estonia. Retrieved January 5, 2025, from https://news.err.ee/1608863810/sun-worth-chasing-in-estonia
  2. Wagner Solar (n.d.). In Estonia solar plants popping up like mushrooms out of the ground. Retrieved January 5, 2025, from https://www.wagner-solar.com/en/power/references-solar-power/estonia-solar-plants
  3. Tranding Economics (2024, December). Estonia – Electricity prices: Medium size households. Retrieved January 5, 2025, from https://tradingeconomics.com/estonia/electricity-prices-medium-size-households-eurostat-data.html
  4. Elering (2024, April 2). The reliability rating of Eleringโ€™s power grid in 2023 was 99.99 percent. Retrieved January 5, 2025, from https://elering.ee/en/reliability-rating-elerings-power-grid-2023-was-9999-percent
  5. International Renewable Energy Agency (2024). Renewable energy statistics 2024. Retrieved November 24, 2024, from https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2024/Jul/IRENA_Renewable_Energy_Statistics_2024.pdf
  6. Eesti Rahvusringhรครคling (2024, November 15). Estonia sets out 2035 expanded renewables, managed power vision. Retrieved January 5, 2025, from https://news.err.ee/1609522114/estonia-sets-out-2035-expanded-renewables-managed-power-vision
  7. CEE Bankwatch Network (2018, July 25). Estoniaโ€™s dirty secret. Retrieved January 5, 2025, from https://bankwatch.org/blog/estonia-s-dirty-secret-oil-shale
  8. International Energy Agency (IEA) (2023, November). Energy Policy Review. Retrieved January 5, 2025, from https://iea.blob.core.windows.net/assets/8b462840-c9a6-4f71-81eb-d5acd1213e68/Estonia2023.pdf
  9. Statistics Estonia (2023, September 13). Oil shale electricity production increased last year. Retrieved January 5, 2025, from https://stat.ee/en/news/oil-shale-electricity-production-increased-last-year
  10. Cigre (2018). The Electric Power System โ€“ Estonia. Retrieved January 5, 2025, from https://www.cigre.org/userfiles/files/Community/NC/2018_National-power-system_Estonia.pdf
  11. Energy Efficiency (2024, November 12). Comparing Solar PV Per Capita across Europe. Retrieved January 5, 2025, from https://energyefficiency.ie/blog/comparing-solar-pv-per-capita-across-europe/
  12. Arenguseire foresight centre (n.d.). Active consumers in the future energy system. Development trends up to 2040. Retrieved January 5, 2025, from https://arenguseire.ee/en/reports/active-consumers-in-the-future-energy-system-development-trends-up-to-2040/
  13. Open Infra map (n.d.). All 849 power plants in Estonia. Retrieved January 5, 2025, from https://openinframap.org/stats/area/Estonia/plants
  14. Estonian world (2023, November 3). Within three years, solar power may meet half of Estoniaโ€™s electricity needs. Retrieved January 5, 2025, from https://estonianworld.com/technology/within-three-years-solar-power-may-meet-half-of-estonias-electricity-needs/
  15. Argus media (2024, February 13). Estonia’s Elering to connect 2.7GW of RES in 2024-27. Retrieved January 5, 2025, from https://www.argusmedia.com/en/news-and-insights/latest-market-news/2537641-estonia-s-elering-to-connect-2.7gw-of-res-in-2024-27
  16. Energy News (2024, October 7). Estonia: the largest solar park in the Baltic States is now operational. Retrieved January 5, 2025, from https://energynews.pro/en/estonia-the-largest-solar-park-in-the-baltic-states-is-now-operational/
  17. Palgad (n.d.). Salaries in Estonia. Retrieved January 5, 2025, from https://www.palgad.ee/en/salaries-in-country
  18. World salaries (n.d.). Average Solar Engineer Salary in Estonia for 2025. Retrieved January 5, 2025, from https://worldsalaries.com/average-solar-engineer-salary-in-estonia/
  19. World salaries (n.d.). Average Solar Photovoltaic Installer Salary in Estonia for 2025. Retrieved January 5, 2025, from https://worldsalaries.com/average-solar-photovoltaic-installer-salary-in-estonia/
  20. Worldometers (n.d.). Estonia population. Retrieved January 5, 2025, from https://www.worldometers.info/world-population/estonia-population/
  21. Company space (n.d.). Warehouse for rent in Estonia. Retrieved January 5, 2025, from https://www.companyspace.com/estonia/rent/warehouses?srt_field=price&srt_dir=desc
  22. Global Petrol Prices (2024, March). Retrieved January 5, 2025, from https://www.globalpetrolprices.com/Estonia/electricity_prices/
  23. Eesti Rahvusringhรครคling (2024, August 14). Wide variation in water rates to consumers across Estonia. Retrieved January 5, 2025, from https://news.err.ee/1609424176/wide-variation-in-water-rates-to-consumers-across-estonia
  24. Company space (n.d.). Commercial rentals in Estonia. Retrieved January 5, 2025, from https://www.companyspace.com/estonia/commercial-space-rent?srt_field=price&srt_dir=desc
  25. Statista (2024, September). Non-life insurances โ€“ Estonia. Retrieved January 5, 2025, from https://www.statista.com/outlook/fmo/insurances/non-life-insurances/estonia#gross-written-premium
  26. Enerdata (2024, March). Estonia energy report. Retrieved January 5, 2025, from https://www.enerdata.net/estore/country-profiles/estonia.html
  27. Wikipedia (n.d.). Energy in Estonia. Retrieved January 5, 2025, from https://en.wikipedia.org/wiki/Energy_in_Estonia
  28. European Commission (n.d.). Policies in Estonia. Retrieved January 5, 2025, from https://clean-energy-islands.ec.europa.eu/countries/estonia/legal
  29. The Baltic Times (2024, November 27). Public buildings must produce solar energy by 2027. Retrieved January 5, 2025, from https://www.baltictimes.com/public_buildings_must_produce_solar_energy_by_2027/
  30. Enefit (n.d.). Complete solar energy solution. Retrieved January 5, 2025, from https://www.enefit.ee/en/era/taastuvenergia/paikesepaneelid
  31. ReGlobal (2020, November 11). Estonian government to compensate rise in renewable energy fee. Retrieved January 5, 2025, from https://reglobal.org/estonian-government-to-compensate-rise-in-renewable-energy-fee/
  32. Eesti Rahvusringhรครคling (2024, March 10). Undersecretary: Half of Estonian solar farms built without subsidies. Retrieved January 5, 2025, from https://news.err.ee/1609277445/undersecretary-half-of-estonian-solar-farms-built-without-subsidies
  33. Enefit (2024, April 23). The application process has started! KredEx opened the grant for the installation of solar panels and battery storage. Retrieved January 5, 2025, from https://www.enefit.ee/en/-/blogi/taotlemine-on-alanud-kredex-avas-toetuse-paikesepaneelide-ja-akusalvesti-paigaldamiseks
  34. Invest in Estonia (2024, July). Estonia sets its sights on 100% renewable energy by 2030. Retrieved January 5, 2025, from https://investinestonia.com/estonia-sets-its-sights-on-100-renewable-energy-by-2030/
  35. Aenert (2024, December 24). The energy industry in Estonia. Retrieved January 5, 2025, from https://aenert.com/countries/europe/energy-industry-in-estonia/
  36. EBRD (n.d.). KC Pihlaka Solar PV. Retrieved January 5, 2025, from https://www.ebrd.com/work-with-us/projects/psd/54611.html
  37. Tartu (2021, August 30). Cityโ€™s educational buildings to receive solar power plants. Retrieved January 5, 2025, from https://www.tartu.ee/en/news/citys-educational-buildings-receive-solar-power-plants
  38. ENF solar (n.d.). Solar System Installers in Estonia. Retrieved January 5, 2025, from https://www.enfsolar.com/directory/installer/Estonia
  39. Aeroleads (n.d.). Best solar companies in Estonia in 2025. Retrieved January 5, 2025, from https://aeroleads.com/list/top-solar-companies-in-estonia

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

Estonia typically receives between 1,700 and 2,000 hours of sunshine annually. The distribution of sunlight is generally higher in the western parts compared to the east. For instance, Vilsandi recorded 2,200 hours last year, while Tartu had about 1,836 hours. 1

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kWh per kWp installed

In Estonia, the average annual electricity production from solar photovoltaic (PV) systems is approximately 950 kWh per kWp installed.2

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Average cost per kWh from utility company

As of December 2024, the average cost of electricity for medium-sized households in Estonia is approximately $0.24 per kWh.3

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Reliability of electrical power supply grid

Estonia’s electrical power supply grid demonstrates high reliability, with Elering reporting a 99.99% reliability rating in 2023, indicating minimal power outages and efficient energy transmission.

Interconnections with neighboring countries enhance stability, despite the fact that the Balticconnector gas pipeline was damaged on 8 October 2023, cutting the connection between Estonia and Finland. 4

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Detailed Information

  • All figures have been converted into USD
  • Total solar panel production capacity (installed)

    Total installed solar photovoltaic (PV) capacity in Estonia was approximately 822 MW.5

    Total solar panel production capacity (projected)

    By 2040, Estonia is projected to achieve a total solar PV capacity of 2,500 MW according to the Climate Ministry.6

    Average costs of various electricity generation sources (coal, natural gas, solar, etc)

    7

    • Oil shale – $0.19/kWh
    • Off-shore wind – $0.14/kWh
    • Natural gas – $0.12/kWh
    • Solar energy – $0.11/kWh
    • On-shore wind – $0.093/kWh

    Percentages of various electricity generation sources (coal, natural gas, solar, etc)

    89

    • Oil shale: 57%
    • Biomass: 23%
    • Wind: 8%
    • Solar energy: 6.3%
    • Natural gas: 5.8%

    Average daily availability of electricity from the national grid (measured in hours)

    The average daily availability of electricity from the national grid in Estonia is close to 24 hours, with the average interruption of electricity supply being about 105 minutes per year, which translates to roughly 1.75 hours of downtime annually, indicating a high reliability of the electricity network in the country. 10

    Number of residential solar panel installations

    1112

    Estonia had approximately 600 watts of solar power capacity per capita as of late 2023. This figure places Estonia as the 6th highest in the EU for solar power generation per capita, reflecting a growing trend in residential solar panel installations.

    In Estonia, households contribute less than 1% to the total electricity generation, with their solar energy production accounting for about 12% of the total solar energy output in the country.

    By 2022, at least 10,000 households had installed solar panels, accounting for nearly 2% of all households in Estonia. Projections suggest that by 2040, the number of residential installations connected to the grid in Estonia will increase by 2 to 4 times, reaching up to 44,000 households.

    Total number of solar farms (installed and projected)

    1314

    Currently, there are over 800 operational solar farms in Estonia.

    Additionally, there are over 250 megawatts of large-scale solar parks under construction, which could start operating by the end of the year.

    Off-grid market demand for solar panels (current and projected)

    Estonia’s electricity system is undergoing significant changes, moving towards electrification and decentralized energy generation. This shift allows households and businesses to become active participants in energy production, leading to increased interest in off-grid solar solutions as a means of energy independence and resilience.12

    On-grid market demand for solar panels (current and projected)

    121516

    The Estonian transmission system operator, Elering, aims to integrate 2.7 GW of renewable energy sources, mainly solar, by 2027. This rapid expansion in solar capacity underscores Estonia’s commitment to reaching a 40% renewable energy mix by 2030, with solar energy playing a key role in this transition.

    The Kirikmรคe Solar Park, with an installed capacity of 77.53 MW and generating approximately 101 GWh of electricity annually, contributes about 10% to Estonia’s total solar energy generation capacity.

    On the other hand, in 2022, prosumers generated 61 GWh, which constitutes a small portion of Estonia’s total electricity production.

    Average monthly income of workers in solar industry (labor cost)

    171819

    • The average monthly salary in Estonia is in the range ofย $1,069 to $3,002.
    • Solar Engineer: the average monthly salary is approximately $2,364.
    • Solar Photovoltaic Installer: the average monthly salary is approximately $ 1,671.

    Population of the country

    The current population of Estonia is 1,352,107.20

    Average overhead costs of solar panel production (with a brief breakdown)

    Estimate for Factory Rentย 21

    The average rent of industrial premises and warehouses in Estonia ranges from as low as $17 per mยฒ/year in Pรคrnu Region, to $75.37 per mยฒ/year in Rae (Harju County).

    Industrial Electricity Ratesย 22

    The average electricity price for businesses in Estonia is approximately $0.153 per kWh as of March 2024.

    Water Costsย 23

    Water tariffs across Estonia show significant variation depending on the municipality and service provider, ranging from $2 per cubic meter in Tallin, to $4.74 in Maardu.

    Salaries and Wagesย 1819

    Monthly salaries of workers in solar industry in Estonia ranges from $1,671 to $2,364, depending on the position.

    Rent for Office Spaceย 24

    The average rent of commercial and office spaces in Estonia ranges from as low as $0.37 per mยฒ/year in Pรตlva Region, to $2,724 per mยฒ/year in Tallin.

    Insuranceย 25

    The average spending per capita for non-life insurance in Estonia is expected to reach $586 in 2025.

    A summary of the energy infrastructure

    892627

    Estonia’s energy infrastructure is evolving, focusing on sustainability and reducing reliance on fossil fuels. Hereโ€™s a detailed overview:

    Energy Mix

    As of 2022, Estonia’s energy mix is predominantly based on oil shale (57%), followed by bioenergy and renewables, which includes wind, solar, and biomass. The share of oil shale in electricity generation decreased from 86% in 2010, reflecting ongoing efforts to diversify energy sources.

    Key Institutionsย 

    The Ministry of Economic Affairs and Communications oversees energy policy, while the Estonian Competition Authority regulates the energy sector.

    The state-owned company Eesti Energia dominates the market, controlling 75% of electricity generation and over 95% of distribution.

    Export / Import

    Estonia imports fossil fuels, particularly natural gas, while exporting electricity to neighboring countries. The country halted imports of Russian gas and oil products in 2022 due to geopolitical tensions. It also operates two submarine power cables to Finland, facilitating cross-border electricity trade

    Policy Goals

    Estonia aims for 100% renewable electricity production by 2030 and climate neutrality by 2050. The government is prioritizing the development of offshore wind projects and has set a target to cease oil shale production by 2030.

    Key Projects

    • A โ‚ฌ2.6 billion offshore wind energy scheme, expected to produce up to 4 TWh annually.
    • The construction of Estonia’s first pumped-storage hydroelectric plant, set to be operational by 2026, enhancing energy security and stability in the grid.

    Some of the government regulations surrounding solar panel production

    282930

    Permitting process: The installation of solar panels requires several steps, including site selection, obtaining an electricity production license, administrative authorization, and grid connection. The process can vary in complexity based on project size, with rooftop installations generally facing fewer regulatory hurdles than larger ground-mounted systems.

    Mandatory installation for public buildings: New regulations mandate that all public and commercial buildings over 250 square meters must install rooftop solar systems by 2027.

    Competent Authorities: Key institutions involved include the Ministry of Economic Affairs and Communications, local municipalities, and Elering (the transmission system operator). They oversee compliance with regulations and facilitate the permitting process.

    Government initiatives in solar panel production (includes investments and subsidies)

    31323334

    Financial Support: The Estonian government has allocated $8.24 million to Elering, the state-owned transmission system operator, to stabilize renewable energy fees for consumers, which helps maintain subsidies for solar energy production.

    Private Sector Participation: Approximately half of Estonia’s solar farms have been established without government subsidies, indicating strong private sector engagement in renewable energy initiatives.

    KredEx Subsidies: Through KredEx, a state financing institution, applicants can receive subsidies covering up to 30% of costs for designing, purchasing, and installing solar panel systems. The maximum subsidy amount is capped at $30,900 per applicant.

    Investment in Energy Storage: The Estonian Ministry of Economy has allocated $9.88 million for renewable energy storage projects, which can indirectly support solar panel production by enhancing grid stability and storage capacity.

    Notable solar projects in the country (installed and projected)

    16353637

    Kirikmรคe Solar Park

    • Capacity: 77.53 MW
    • Location: Pรคrnu County
    • Details: This is the largest solar park in the Baltic States, sufficient to meet the energy needs of about 35,000 households.

    Raba Solar Power Plant

    • Capacity: 45 MW
    • Location: Pรคrnu County
    • Details: This project is expected to be completed by 2025, aiming to contribute significantly to Estonia’s renewable energy goals.

    KC Pihlaka Solar PV Project

    • Capacity: 52.5 MW (7.5 MW for Pihlaka 1 and 45 MW for Pihlaka 2)
    • Location: Harju County, near Tallinn
    • Details: This project consists of two adjacent solar power plants and is set to start construction in spring 2024, with completion expected in 2025.

    Tartu Solar Park

    • Capacity: 10 MW
    • Location: Tartu
    • Details: This solar park is part of the cityโ€™s efforts to enhance its renewable energy portfolio. It aims to provide clean energy to local households and businesses, contributing to Tartu’s sustainability goals.

    Some of the notable solar companies (plus brief details on what they do)

    3839

    Enefit

    • Headquarters: Tallinn, Estonia
    • Website: https://www.enefit.ee/
    • Details: Enefit is a major energy company in Estonia that has expanded its portfolio to include renewable energy sources like solar power. They are involved in various projects aimed at increasing renewable energy production.

    Solarstone

    • Headquarters: Tallinn, Estonia
    • Website:ย solarstone.ee
    • Details: Solarstone specializes in solar energy solutions, including the design and installation of solar power systems for residential and commercial clients.

    Nelja Energia

    • Headquarters: Tallinn, Estonia
    • Website:ย neljaenergia.ee
    • Details: Nelja Energia is one of the leading renewable energy companies in Estonia, focusing on wind and solar energy projects. They develop and operate various renewable energy facilities across the country.

    Roofit.Solar

    • Headquarters: Tallinn, Estonia
    • Website:ย roofit.solar
    • Details: Solar manufactures innovative solar panels that integrate seamlessly into roofing materials. Their products combine aesthetic design with high efficiency, catering to both residential and commercial markets.

    Naps Solar

    • Headquarters: Tartu, Estonia
    • Website:napssolar.com
    • Details: Naps Solar has over 40 years of experience in solar energy and provides high-quality solar panels manufactured in Estonia. They focus on both domestic and international markets.

    Green Genius

    • Headquarters: Tallinn, Estonia
    • Website:ย greengenius.com
    • Details: Green Genius develops renewable energy projects across Europe, including solar farms in Estonia. They focus on sustainability and reducing carbon footprints through clean energy solutions.

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