IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i19p6773-d1245823.html

Improving the Feed-in Tariff Policy for Renewable Energy Promotion in Ukraine’s Households

Author

Listed:
  • Tetiana Kurbatova

    (International Economic Relations Department, Sumy State University, 40007 Sumy, Ukraine)

  • Iryna Sotnyk

    (Department of Economics, Entrepreneurship and Business Administration, Sumy State University, 40007 Sumy, Ukraine)

  • Olha Prokopenko

    (Estonian Entrepreneurship University of Applied Sciences, 11415 Tallinn, Estonia
    Department of Applied Sciences, Academy of Applied Sciences Mazovia, 08-110 Siedlce, Poland
    Department of Business Economics and Administration, Sumy State Makarenko Pedagogical University, 40000 Sumy, Ukraine)

  • Iryna Bashynska

    (Department of Enterprise Management, AGH University of Krakow, 30-059 Krakow, Poland)

  • Uliana Pysmenna

    (Department of Economics and Entrepreneurship, National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute”, 03056 Kyiv, Ukraine)

Abstract

This paper deals with improving the feed-in tariff policy for green energy advancement in Ukraine’s households based on assessing the economic efficiency of investment project implementation under the current state support mechanisms. This study was conducted for solar and wind power plants with different installed capacities. The Levelized Cost of Electricity and the payback period for such power plants were calculated considering the ongoing feed-in tariffs and discount rates determined by various equity and debt capital ratios. The results showed that the state support provides attractive payback periods for solar and wind power plants with an installed capacity of ≥30 kW. In comparison, 5 kW solar power plants and wind power plants with a capacity of up to 10 kW are not paid off during the power plants’ lifecycle. It confirmed that the ongoing energy policy in Ukraine’s residential sector is still designed to obtain profits by the owners of generating facilities by selling the excess electricity. In the meantime, its main goal—providing households energy independence—has been levelled. To resolve the issues caused by such a state support model, a methodical approach to improve the feed-in tariff calculation is proposed. In addition, recommendations for reconsidering other policy measures to ensure effective renewable energy development in the residential sector have been made.

Suggested Citation

  • Tetiana Kurbatova & Iryna Sotnyk & Olha Prokopenko & Iryna Bashynska & Uliana Pysmenna, 2023. "Improving the Feed-in Tariff Policy for Renewable Energy Promotion in Ukraine’s Households," Energies, MDPI, vol. 16(19), pages 1-18, September.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:19:p:6773-:d:1245823
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/19/6773/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/19/6773/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Justyna Zalewska & Krzysztof Damaziak & Jerzy Malachowski, 2021. "An Energy Efficiency Estimation Procedure for Small Wind Turbines at Chosen Locations in Poland," Energies, MDPI, vol. 14(12), pages 1-18, June.
    2. Sotnyk, Iryna & Kurbatova, Tetiana & Blumberga, Andra & Kubatko, Oleksandr & Prokopenko, Olha, 2023. "Solar business prosumers in Ukraine: Should we wait for them to appear?," Energy Policy, Elsevier, vol. 178(C).
    3. Guta, Dawit Diriba, 2020. "Determinants of household use of energy-efficient and renewable energy technologies in rural Ethiopia," Technology in Society, Elsevier, vol. 61(C).
    4. Zhang, Yu & Song, Junghyun & Hamori, Shigeyuki, 2011. "Impact of subsidy policies on diffusion of photovoltaic power generation," Energy Policy, Elsevier, vol. 39(4), pages 1958-1964, April.
    5. Barnea, Gil & Hagemann, Christian & Wurster, Stefan, 2022. "Policy instruments matter: Support schemes for renewable energy capacity in worldwide comparison," Energy Policy, Elsevier, vol. 168(C).
    6. Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "Greenfield Investment as a Catalyst of Green Economic Growth," Energies, MDPI, vol. 16(5), pages 1-16, March.
    7. Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "Inclusive Economic Growth: Relationship between Energy and Governance Efficiency," Energies, MDPI, vol. 16(6), pages 1-16, March.
    8. Castaneda, Monica & Zapata, Sebastian & Cherni, Judith & Aristizabal, Andres J. & Dyner, Isaac, 2020. "The long-term effects of cautious feed-in tariff reductions on photovoltaic generation in the UK residential sector," Renewable Energy, Elsevier, vol. 155(C), pages 1432-1443.
    9. Jacksohn, Anke & Grösche, Peter & Rehdanz, Katrin & Schröder, Carsten, 2019. "Drivers of renewable technology adoption in the household sector," Energy Economics, Elsevier, vol. 81(C), pages 216-226.
    10. Dariusz Sala & Iryna Bashynska & Olena Pavlova & Kostiantyn Pavlov & Nelia Chorna & Roman Chornyi, 2023. "Investment and Innovation Activity of Renewable Energy Sources in the Electric Power Industry in the South-Eastern Region of Ukraine," Energies, MDPI, vol. 16(5), pages 1-21, March.
    11. Couture, Toby & Gagnon, Yves, 2010. "An analysis of feed-in tariff remuneration models: Implications for renewable energy investment," Energy Policy, Elsevier, vol. 38(2), pages 955-965, February.
    12. Iryna Sotnyk & Tetiana Kurbatova & Yaroslavna Romaniuk & Olha Prokopenko & Viktoriya Gonchar & Yuriy Sayenko & Gunnar Prause & Aleksander Sapiński, 2022. "Determining the Optimal Directions of Investment in Regional Renewable Energy Development," Energies, MDPI, vol. 15(10), pages 1-26, May.
    13. Gencer, Busra & van Ackere, Ann, 2021. "Achieving long-term renewable energy goals: Do intermediate targets matter?," Utilities Policy, Elsevier, vol. 71(C).
    14. Nyborg, Karine & Rege, Mari, 2003. "Does Public Policy Crowd Out Private Contributions to Public Goods," Public Choice, Springer, vol. 115(3-4), pages 397-418, June.
    15. Staffell, Iain & Green, Richard, 2014. "How does wind farm performance decline with age?," Renewable Energy, Elsevier, vol. 66(C), pages 775-786.
    16. Tetiana Kurbatova & Daria Lysenko & Galyna Trypolska & Olha Prokopenko & Marina Järvis & Tetiana Skibina, 2022. "Solar energy for green university: estimation of economic, environmental and image benefits," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 21(2/3/4), pages 198-216.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Galyna Trypolska & Tetiana Kurbatova & Oleksandra Kubatko & Gunnar Prause & Maryna Domashenko, 2024. "Organizational and Economic Mechanisms for Promoting Residential Battery Energy Storage Systems in Ukraine," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 501-512, November.
    2. Wojciech Lewicki & Mariusz Niekurzak & Adam Koniuszy, 2025. "Evaluation of the Possibility of Using a Home Wind Installation as Part of the Operation of Hybrid Systems—A Selected Case Study of Investment Profitability Analysis," Energies, MDPI, vol. 18(8), pages 1-24, April.
    3. Habib, Md. Ahasan & Hossain, M.J., 2025. "Smart Grid, Smart FiT: A data-driven approach to optimize microgrid energy market," Energy Policy, Elsevier, vol. 203(C).
    4. Iryna Bashynska & Viktoriia Kryvda & Dariusz Sala & Liubov Niekrasova & Oleksii Maksymov & Vladyslav Suvorov, 2024. "Simulation Model of a Unified Energy System for Different Scenarios of Planned Disturbances," Energies, MDPI, vol. 17(23), pages 1-45, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko & Denys Pudryk, 2024. "Global Image of Countries and Immigration Flows," Central European Business Review, Prague University of Economics and Business, vol. 2024(4), pages 83-101.
    2. Henryk Dzwigol & Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2024. "Digitalization and Energy in Attaining Sustainable Development: Impact on Energy Consumption, Energy Structure, and Energy Intensity," Energies, MDPI, vol. 17(5), pages 1-17, March.
    3. Bruno Domenech & Gema Calleja & Jordi Olivella, 2021. "Residential Photovoltaic Profitability with Storage under the New Spanish Regulation: A Multi-Scenario Analysis," Energies, MDPI, vol. 14(7), pages 1-17, April.
    4. Sun, Chuanwang & Li, Xiaozhe & Zuo, Xuguang, 2026. "Income distribution effect of renewable energy investment," Energy Policy, Elsevier, vol. 209(PA).
    5. Dariusz Sala & Iryna Bashynska & Kostiantyn Pavlov & Olena Pavlova & Ihor Halytsia & Bohdan Hevko, 2024. "Comprehensive Assessment of Economic Efficiency for Energy-Saving Investments in Public Utility Enterprises: Optimizing Consumption and Sustainable Development," Sustainability, MDPI, vol. 16(23), pages 1-23, November.
    6. Lee, Bill & Li, Jinke & Shao, Jing, 2025. "The intertemporal unfairness of the feed-in tariff scheme in the United Kingdom: Catching up across regions," Utilities Policy, Elsevier, vol. 97(C).
    7. Yunis Ali Ahmed & Ammar Rashid & Muhammad Mahboob Khurshid, 2022. "Investigating the Determinants of the Adoption of Solar Photovoltaic Systems—Citizen’s Perspectives of Two Developing Countries," Sustainability, MDPI, vol. 14(18), pages 1-25, September.
    8. Jeon, Chanwoong & Lee, Jeongjin & Shin, Juneseuk, 2015. "Optimal subsidy estimation method using system dynamics and the real option model: Photovoltaic technology case," Applied Energy, Elsevier, vol. 142(C), pages 33-43.
    9. Yamashiro, Ririka & Mori, Akihisa, 2023. "Combined third-party ownership and aggregation business model for the adoption of rooftop solar PV–battery systems: Implications from the case of Miyakojima Island, Japan," Energy Policy, Elsevier, vol. 173(C).
    10. Henryk Dzwigol & Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "The Role of Environmental Regulations, Renewable Energy, and Energy Efficiency in Finding the Path to Green Economic Growth," Energies, MDPI, vol. 16(7), pages 1-18, March.
    11. Dalia Štreimikienė & Vidas Lekavičius & Gintare Stankūnienė & Aušra Pažėraitė, 2022. "Renewable Energy Acceptance by Households: Evidence from Lithuania," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    12. Galyna Trypolska & Tetiana Kurbatova & Oleksandra Kubatko & Gunnar Prause & Maryna Domashenko, 2024. "Organizational and Economic Mechanisms for Promoting Residential Battery Energy Storage Systems in Ukraine," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 501-512, November.
    13. Iryna Nyenno & Vyacheslav Truba & Liudmyla Tokarchuk, 2023. "Managerial Future of the Artificial Intelligence," Virtual Economics, The London Academy of Science and Business, vol. 6(2), pages 72-88, June.
    14. Aleksy Kwilinski, 2024. "Mapping Global Research on Green Energy and Green Investment: A Comprehensive Bibliometric Study," Energies, MDPI, vol. 17(5), pages 1-24, February.
    15. Liu, Wei & Guo, Chuanmin & Gui, Xuechen & Li, Dong & Chen, Xinyu, 2025. "Exploring preferences for household energy technology adoption from a spatiotemporal perspective: Evidence from demographics, the economy, and the environment," Energy, Elsevier, vol. 319(C).
    16. Tetiana Kurbatova & Iryna Sotnyk & Galyna Trypolska & Laima Gerlitz & Tetiana Skibina & Olha Prokopenko & Oleksandra Kubatko, 2023. "Ukraine`'s Bioenergy Sector: Trends and Perspectives for the Post-war Green Energy Transition," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 515-532, September.
    17. Aleksy Kwilinski, 2024. "Understanding the nonlinear effect of digital technology development on CO2 reduction," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 5797-5811, October.
    18. Edward Owusu & Jones Lewis Arthur & Kwaku Amofah, 2023. "Cross-Сultural Communication Strategies in the Digital Era: A Bibliometric Analysis," Virtual Economics, The London Academy of Science and Business, vol. 6(2), pages 55-71, June.
    19. Mac Clay, Pablo & Börner, Jan & Sellare, Jorge, 2023. "Institutional and macroeconomic stability mediate the effect of auctions on renewable energy capacity," Energy Policy, Elsevier, vol. 180(C).
    20. Libo Zhang & Qian Du & Dequn Zhou, 2021. "Grid Parity Analysis of China’s Centralized Photovoltaic Generation under Multiple Uncertainties," Energies, MDPI, vol. 14(7), pages 1-19, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:16:y:2023:i:19:p:6773-:d:1245823. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.