Russia Solar Report

Discover comprehensive insights into the statistics, market trends, and growth potential surrounding the solar panel manufacturing industry in Russia

  1. Climate top, 2024, https://www.climate.top/russia/moscow/sunlight/
  2. Profile Solar. (2024). Solar PV Analysis of Moscow, Russia. https://profilesolar.com/locations/Russia/Moscow/
  3. Global Petrol Prices. (2023). Russia electricity prices. https://www.globalpetrolprices.com/Russia/electricity_prices/
  4. RFE/RL’s Russian Service & RFE/RL’s Ukrainian Service. (2024, July 17). Russia says ‘false alarm’ behind massive power outage in South. Radio Free Europe/Radio Liberty. https://www.rferl.org/a/russia-crimea-nuclear-blackouts/33039466.html
  5. Van Brugen, I. (2024, July 1). Russian cities hit by power outages as Ukraine turns tables on Putin. Newsweek. https://www.newsweek.com/russia-power-outages-electricity-belgorod-1919484
  6. Statista. (2022). Total solar energy capacity in Russia from 2010 to 2022. https://www.statista.com/statistics/1154523/total-solar-energy-capacity-in-russia/
  7. Russian News Agency. (2023). Russia to commission 438 MW of renewable energy capacity in 2023 — Association. https://tass.com/economy/1576445
  8. Power Technology. (2024). Solar PV capacity in Russia and major projects. https://www.power-technology.com/data-insights/solar-pv-in-russia/
  9. Cherepovitsyna, A., Kuznetsova, E., & Guseva, T. (2023). The costs of CC(U)S adaptation: The case of Russian power industry. Energy Reports, 9(Supplement 1), 704–710. https://doi.org/10.1016/j.egyr.2022.11.104
  10. Marchenko, O., & Solomin, S. V. (2016). Investigation of ecological constraints influence on competitiveness of nuclear power plants. https://www.eia.gov/international/analysis/country/RUS
  11. U.S. Energy Information Administration. (2024). Russia. https://www.eia.gov/international/analysis/country/RUS
  12. Crisis 24. (2024). Russia: Power outages affecting southern regions as of evening July 16. https://crisis24.garda.com/alerts/2024/07/russia-power-outages-affecting-southern-regions-as-of-evening-july-16
  13. PSmarketresearch. (2024). Russia Residential Energy Storage Market Size & Share Analysis – Trends, Drivers, Competitive Landscape, and Forecasts (2024 – 2030). https://www.psmarketresearch.com/market-analysis/russia-residential-energy-storage-market
  14. Power Technology. (2024). Top five solar PV plants in development in Russia. https://www.power-technology.com/data-insights/top-5-solar-pv-plants-in-development-in-russia/
  15. Bellini, E. (2021, February 17). Off-grid PV market grows in Russia’s remotest regions as alternative to diesel. PV Magazine. https://www.pv-magazine.com/2021/02/17/off-grid-pv-market-grows-in-russias-remotest-regions-as-alternative-to-diesel/
  16. Hevel Solar. (2021, August 27). Hevel installs 2.6 MW of off-grid solar-diesel in Russia. PV Magazine. https://www.pv-magazine.com/2021/08/27/hevel-installs-2-6-mw-of-off-grid-solar-diesel-in-russia/
  17. Wikipedia. (n.d.). Renewable energy in Russia. https://en.wikipedia.org/wiki/Renewable_energy_in_Russia
  18. Salary Explorer. (2024). Solar Engineer Average Salary in Russia 2024. https://www.salaryexplorer.com/average-salary-wage-comparison-russia-solar-engineer-c179j11250
  19. Worldometer. (2024). Population of Russia. https://www.worldometers.info/world-population/russia-population/
  20. Statista. (2024). Rental rate of A class warehouses in Moscow, Russia, from 2013 to 2022. https://www.statista.com/statistics/676091/warehouse-properties-rental-rate-moscow-russia/
  21. Colliers International. (2018). Moscow Industrial Market Q4 2018. https://www.colliers.com/-/media/Files/EMEA/Russia/Moscow/2018/ENG/Colliers-industrial-moscow-en-q4-2018.ashx
  22. Instant Offices. (n.d.). Office Space for Rent in Moscow. https://www.instantoffices.com/en/ru/office-space/moscow
  23. Wikipedia. (n.d.). Electricity sector in Russia. https://en.wikipedia.org/wiki/Electricity_sector_in_Russia
  24. Macrotrends. (n.d.). Russia electricity trends. https://www.macrotrends.net/global-metrics/countries/RUS/russia/electricity-access-statistics
  25. International Energy Agency. (n.d.). Energy Fact Sheet: Why does Russian oil and gas matter? https://www.iea.org/articles/energy-fact-sheet-why-does-russian-oil-and-gas-matter
  26. Topla Kuca. (2023). Legislative framework for solar energy in Russia. https://toplakuca.me/en/en-legislative-framework-for-solar-energy-in-russia/
  27. Proskuryakova, L. (2022). Russia’s renewable energy sector: Policy recommendations. https://www.centrumbalticum.org/files/5176/BSR_Policy_Briefing_3_2022.pdf
  28. World Bank. (2023). Russia’s New Capacity-based Renewable Energy Support Scheme. https://documents1.worldbank.org/curated/en/898211480317256904/pdf/110538-Energy-Suppor-Scheme-Eng.pdf
  29. Emiliano. (2021). Russia introduces net metering for small-sized PV. PV Magazine. https://www.pv-magazine.com/2021/03/10/russia-introduces-net-metering-for-small-sized-pv/

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

There is an average of 1693 hours of sunlight per year with an average of 4 hours 38 minutes of sunlight per day.1

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Figure 01 Average Sunlight Hours/ Day in Moscow.

kWh per kWp installed

The average annual energy production per kW of installed solar capacity is as follows:2

  • 2,164 kWh/kWp/yr in summer
  • 584 kWh/kWp/yr in autumn
  • 332 kWh/kWp/yr in winter
  • 1,559 kWh/kWp/yr in spring. 

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Average cost per kWh from utility company

  • The electricity price for households is USD 0.063 per kWh.3
  • These prices include all components of the electricity bill, such as power costs, distribution, and taxes.

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Reliability of electrical power supply grid

Russian power supply grid is very reliable; however, due to several causes, some sections of it are currently in a compromised state:54

  • In Southern Russia and parts of Crimea, a massive power outage occurred due to the emergency shutdown of a unit at the Rostov nuclear power plant, which Rosenergoatom attributed to a “false alarm.” This incident left approximately 1 million people without electricity.
  • Additionally, Ukraine’s drone attacks on Russian regions, including Kursk, Belgorod, and Bryansk, have further disrupted the power supply, leaving 90% of the Belgorod region without electricity. These events suggest a fragile and unreliable power supply in these areas, heavily influenced by both technical issues and ongoing military conflict.

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Detailed Information

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

    Russia’s total capacity of solar energy surpassed 18 gigawatts (GW) in 2022, marking an increase from the previous year. This accounts for 0.16% of the global solar PV capacity.6

    Total solar panel production capacity (projected)

    • 645 MW of solar will be brought on stream by the end of 2024.7
    • Solar PV is expected to account for 2% of total installed generation capacity till 2035.8

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

    109

    Fossil Fuels

    • Coal, natural gas, and nuclear power are typically the least expensive sources of electricity, with levelized costs generally below $100 per kilowatt-hour (kWh).
    • According to a 2022 study, the cost of electricity and coal for a Russian power plant is about $1.69 and $1.72 per tonne of CO2.

    Renewables

    • According to researchgate.net, solar and wind installations in some areas of Russia can produce electricity for 3–5 cents per kilowatt-hour (kWh) in favorable conditions.

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

    Russia generated 44% of its electricity from natural gas, with nuclear power contributing 20%, hydroelectric sources 19%, and coal 15%.11

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

    Specific data on the number of hours of average daily electricity availability is not available But, the frequency and duration of power cuts in Russia can vary widely depending on the region.12

    • In major cities like Moscow or St. Petersburg, power cuts are generally rare and brief due to the robust infrastructure.
    • However, in remote or rural areas, power outages are more common and can last longer, often due to weather conditions or infrastructure issues.

    Number of residential solar panel installations

    13

    Current Installations

    Only 1% of total capacity is generated by renewable in Russia. So there is very limited data available for residential solar installations. However,

    • When it comes to residential PV, approximately 20 MW is installed, with 98% of it being off-grid or hybrid systems that partially feed into the grid

    Projected Installations

    Specific number is not available but;

    • The Russian government has approved a new tender scheme for renewable covering the period from 2025 to 2034. The total budget allocated for this initiative is approximately $1.88 billion.

    Total number of solar farms (installed and projected)

    14

    Installed Solar Farms

    Russia generates solar-powered energy from 57 solar power plants across the country.

    Projected Solar Farms

    As per available data of under construction solar projects, projected number of solar farms is 3 till 2025.

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

    The off-grid solar market in Russia, particularly in remote areas, is gaining significant traction due to several key factors:1516

    Current Demand and Deployment

    • Russia has over 10,000 villages that are disconnected from the national grid and currently rely on diesel generators, which are expensive and often unreliable due to fuel supply issues.
    • In regions like the Far East and Siberia, solar power coupled with storage is increasingly being adopted to replace diesel generation. The Far East regions alone are projected to have a potential off-grid solar-diesel market size of approximately 800 MW.

    Economic Viability

    • The levelized cost of electricity (LCOE) for recently commissioned off-grid solar-plus-storage projects in remote areas of Russia ranges from $0.19 to $0.29 per kWh. This is significantly more economically viable compared to diesel generation.
    • The Russian government supports this transition through regulatory frameworks that incentivize municipalities to reduce diesel consumption by adopting solar-plus-storage systems.

    Future Projections

    • The ongoing shift towards off-grid solar in remote areas is expected to continue growing. Several regions are already on the path of building PV power generation to replace diesel, and more projects are anticipated as logistical and economic advantages become clearer.
    • Companies like Hevel Solar are actively developing off-grid solar-diesel projects. For instance, they installed 2.6 MW of off-grid solar-diesel capacity in the Chukotka region in 2021, with ongoing developments expected in other remote regions.

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

    Exact figure is not given but:17

    Current Demand

    • Early Development: Before 2010, solar energy in Russia was virtually nonexistent, despite the country’s significant potential, particularly in southern regions like the North Caucasus.
    • Initial Capacity: The first major step towards solar energy development was in 2010 with the opening of a solar plant in Belgorod Oblast. By 2010, the plan was to achieve an overall solar capacity of 150 MW by 2020.
    • Solar Auctions: Several auctions between 2013 and 2015 significantly boosted solar development. Contracts awarded through these auctions amounted to 399 MW in 2013, 505 MW in 2014, and 280 MW in 2015.
    • Projects till 2020: The Russian Solar Energy Association stated that cumulative solar power capacity in Russia reach 1,500 MW by 2020.
    • Ongoing Development: Between 2017 and 2021, “Solar Silicon Technologies” LLC constructed at least 4 solar plants totaling 130 MW, indicating continued growth and investment in solar energy.

    Future Demand

    • The construction of new solar plants, such as the one on the Black Sea, and advancements in solar technology, like double-sided solar panels, suggest ongoing and future demand for on-grid solar panels in Russia. The joint venture discussions between Russia and India for producing silicon wafers for photovoltaic cells further emphasize the potential for future expansion.

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

    18

    • Low Monthly Salary: 530.40 USD
    • Average Monthly Salary: 1,152 USD
    • High Monthly Salary: 1,836 USD
    • Average Yearly Salary: 13,800 USD

    Population of the country

    The current population of the Russian Federation is 144,729,97119

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

    Estimate for Factory Rent2021

    Average Warehouse Rental Cost

    Moscow: In 2022, the net rental rate for Class A warehouse properties in Moscow reached approximately 72 USD per square meter. By the first quarter of 2020, industrial warehouse rents were highest in the city center.

    Freezing Warehouses: In the Moscow region, freezing warehouses have an average rental rate of approximately 115 USD per square meter per year (excluding VAT).

    Business Electricity Price 3

    • The electricity price for households is USD 0.063 per kWh, while for businesses it is USD 0.095 per kWh.

    Key Components of Administrative Costs

    Salaries and Wages: 18

    • Low Monthly Salary: 530.40 USD
    • Average Monthly Salary: 1,152 USD
    • High Monthly Salary: 1,836 USD
    • Average Yearly Salary: 13,800 USD

    Rent for Office Space22

    Location Type of Space Monthly Rent (USD)
    Tverskaya Street Shared Office Space 5,940 USD
    Coworking Desks 504 USD per person
    Trubnaya Street Private Workspace 977 USD
    Novinskiy Boulevard Private Offices 632 USD
    Ulitsa Bol’shaya Yakimanka Coworking Desks 312 USD per person
    Bolshaya Gruzinkaya Street Coworking Desks 264 USD per person

    A summary of the energy infrastructure

    Electricity Generation17

    • Electricity generation is based largely on gas , coal , hydro , and nuclear 60% of thermal generation (gas and coal) is from combined heat and power plants.
    • Russia operates 31 nuclear power reactors in 10 locations, with an installed capacity of 21 GW.

    Transmission & Distribution23

    • The Russian electrical grid encompasses more than 3.2 million kilometers (2 million miles) of power lines, including 150,000 kilometers (93,000 miles) of high-voltage cables exceeding 220 kV.
    • Substations: 686,2 thousand substations
    • Transmission lines: HV and UHV transmission lines that operate in parallel at 220–750 kV

    Energy Access24

    Russia electricity access for 2021 was 100.00%

    Energy Exports25

    • Russia’s energy strategy emphasizes self-sufficiency in gasoline, resulting in minimal exports of this fuel.
    • However, Russian refineries produce about twice the amount of diesel required for domestic use, with around half of their annual production typically exported, primarily to European markets.
    • Additionally, Russia is a significant exporter of vacuum gasoil and heavy fuel oil.

    Some of the government regulations surrounding solar panel production

    2627

    Renewable Energy Legislation

    • Federal Law No. 35-FZ “On Electric Power Industry” (2003): This is the primary law regulating the electricity sector in Russia, including renewable energy. Amendments made to this law in recent years include provisions to support the development of renewable energy, including solar power.
    • Decree No. 449 (2013): This decree introduced mechanisms to support renewable energy in Russia, including solar energy. It established a system of capacity-based payments for renewable energy projects, including those related to solar power.

    Localization Requirements

    • Government Resolution No. 426 (2014): This resolution introduced the criteria for classifying solar energy projects as “qualified generating facilities” based on their localization levels. Only those projects that meet the localization requirements can benefit from state support measures, such as subsidies and capacity payments.
    • Localization Requirement: To qualify for CSA support, solar projects must meet specific localization requirements, meaning a certain percentage of the equipment used must be produced in Russia. The localization threshold for solar projects under CSA is set at 70%, which includes components like solar cells, inverters, and mounting structures.

    Technical Standards and Certification

    • GOST Standards: Solar panels and related equipment produced or imported into Russia must comply with Russian GOST standards, which are technical regulations that ensure product quality and safety. Certification under these standards is required for solar panels to be sold and used in the Russian market.
    • Technical Regulations of the Customs Union: Solar panels must also comply with the technical regulations established by the Eurasian Economic Union (EAEU), which includes Russia. These regulations cover safety, efficiency, and other technical aspects of solar energy products.

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

    2829

    1. Capacity Supply Agreements (CSA) for Renewables

    • Program Overview: The CSA mechanism is the most significant support program for renewable energy in Russia, including solar power. Under this program, the government guarantees a return on investment for renewable energy projects through long-term contracts (usually 15 years) that ensure a stable revenue stream for solar power producers.
    • Subsidy Mechanism: Solar energy producers are compensated through capacity payments, which are calculated based on the installed capacity of the solar power plants rather than the actual electricity generated. These payments are designed to cover the costs of investment, including the cost of capital, and ensure profitability.

    2. Renewable Energy Development Program (REDP)

    • Program Overview: The Renewable Energy Development Program was established by the Russian government to increase the share of renewable energy in the country’s energy mix, with a focus on solar, wind, and small hydropower.
    • Specific Targets: The program sets specific capacity targets for the deployment of solar power. For instance, the target for solar energy capacity was set at 1.5 GW by 2024. The program supports the development of solar panel production facilities by providing grants, low-interest loans, and other forms of financial assistance to manufacturers.
    • Incentives: Manufacturers who participate in the REDP benefit from reduced tax rates, exemptions from duties, and access to government-funded research and development programs.

    3. Government Resolution No. 426 (2014)

    • Program Overview: This resolution established the criteria and mechanisms for supporting renewable energy projects, including solar power, through state subsidies. It outlines the procedures for classifying projects as “qualified generating facilities,” which is a prerequisite for receiving state support.
    • Subsidy Details: The resolution allows for direct financial support in the form of subsidies to cover capital expenditures (CAPEX) for solar panel production facilities. The amount of subsidy is determined based on the level of localization and the overall capacity of the solar project.
    • Application to Solar Panel Production: Solar panel manufacturers receive subsidies to offset the costs of establishing or expanding production facilities, provided they meet the localization requirements specified in the resolution.

    Notable solar projects in the country (installed and projected)

    14

    Installed Projects

    Fortum Kalmykia Solar PV Park

    • Capacity: 116 MW
    • Location: Kalmykia, Russia
    • Stage: Partially active
    • Developers: Fortum
    • Owners: Russian Direct Investment Fund, Fortum
    • Details: The park is partially active, contributing renewable energy to the grid while continuing further development.

    Unigreen Zabaykalsky Krai Solar PV Park 3

    • Capacity: 60 MW
    • Location: Zabaykalsky Krai, Russia
    • Commercial Operation: 2024
    • Developers: Unigreen Power
    • Owners: Unigreen Power
    • Details: This project is part of a broader initiative to enhance solar capacity in the Zabaykalsky region.

    Projected Projects

    Latgale Solar PV Project

    • Capacity: 400 MW
    • Location: Magadan, Russia
    • Stage: Permitting
    • Expected Commercial Operation: 2025
    • Details: This large-scale project is expected to significantly contribute to the region’s renewable energy capacity once operational.

    Unigreen Kalmykia Solar PV Park

    • Capacity: 60 MW
    • Location: Kalmykia, Russia
    • Stage: Under construction
    • Expected Commercial Operation: 2024
    • Developers: Unigreen Power
    • Owners: Unigreen Power
    • Details: Once completed, this project will help bolster renewable energy availability in Kalmykia.

    Unigreen Kalmykia Solar PV Park 2

    • Capacity: 60 MW
    • Location: Kalmykia, Russia
    • Stage: Permitting
    • Expected Commercial Operation: 2024
    • Developers: Unigreen Power
    • Owners: Unigreen Power
    • Details: This project is set to further expand Unigreen’s solar footprint in Kalmykia, complementing the other parks in the area.

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

    Solar Power Solutions Pvt Ltd

    Website: https://www.solarpspl.com/solar-company-in-russia

    Services:

    • Solar Power Solutions Pvt Ltd offers comprehensive solar solutions, including solar installation, energy solutions, and manufacturing/supplying high-quality solar panels.
    • Their services include rooftop solar plants, solar water heaters, solar pumps, solar lights, solar EV charging stations, and large-scale solar power plants.
    • They provide end-to-end services, from consultation to installation and after-sales support.

    LLC EcoPodmoskovye

    Website: https://eco50.ru.

    Services:

    • LLC EcoPodmoskovye is a Russian company established in 2014, specializing in solar energy solutions.
    • The company offers a range of services including selling and installing solar equipment. They also function as both a distributor and wholesaler in the Russian market. Their service coverage extends throughout Russia, and they conduct business primarily in the Russian language.
    • LLC EcoPodmoskovye distributes a variety of solar panels from manufacturers such as Shenzhen Topray Solar Co., Ltd., JA Solar Technology Co., Ltd.,

    AltSolar

    Website: https://altsolar.ru

    Services: They specialize in designing and implementing customized solar projects for residential, commercial, and industrial clients.

    Products:

    • Solar Panels
    • Inverters
    • Storage Systems
    • Charge Controllers

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