Currently, there is no company (except those that signed long-term contracts with HEP last year) that is not troubled by electricity prices, regardless of their activity and size. Entrepreneurs are seeking remedies in alternative sources, and thus business is increasingly turning towards the Sun. Whether it involves smaller or larger investors building solar power plants, or entrepreneurs involved in the import and distribution of solar panels, manufacturers, consultants, technicians, engineers, and everyone else in that ‘solar chain’. Despite still numerous challenges, solar energy currently offers exceptionally attractive rates of return on invested capital, usually within a period of three to five years, depending on the size of the constructed power plant. For manufacturing companies whose electricity bills amount to millions of kuna, a ten percent annual savings has a significant impact on operating costs. The only ‘anti-gravity’ element is the slow bureaucracy and still unresolved legal solutions that would accelerate the transition to renewable energy sources (RES).
– Data shows that, compared to last year, the increase in demand for solar energy has exceeded 300 percent, which is confirmed by the interest visible through daily inquiries we receive from citizens, family farms, craftsmen, and the industry. All of them, in the current circumstances of a significant rise in energy prices, are seeking ways to reduce their overhead costs and are asking for advice and steps they need to take to install solar power plants – emphasizes Maja Pokrovac, director of the Association of Renewable Energy Sources of Croatia (OIEH).
Partners Matej Stipeljković and Matija Sučić, at the company MS2 Energo, started their solar energy business two years ago and confirmed visible changes in demand over the past year. -Until a few months ago, legal entities invested in solar power plants mainly with incentives or guaranteed purchase prices for electricity. Today, that is not the case; for an average entrepreneur, a solar power plant pays off in three to four years if all invested funds are theirs – claims Stipeljković, adding that the production capacities of solar equipment are filled until January 2023. His company is mainly contacted by small and medium-sized enterprises, and the highest demand is for on-grid solar power plants for self-consumption.
He also explained the main steps that entrepreneurs must take when entering an investment: -First, the company needs to obtain an ‘energy card’ and a ’15-minute consumption curve’ from the local HEP. After we receive these documents, we provide approximate prices for design, equipment, and execution. First, we create a conceptual design that we send to HEP to obtain consent for connecting the power plant to the grid. HEP usually issues consent and connection conditions within 30 days, and only after reviewing the received documents can we provide a final offer for the main project, execution, and necessary measurements for commissioning. The project documentation itself is significantly less expensive than the equipment and execution and usually costs around 30 lipa per watt of the planned installed capacity of the power plant. Investment in power plants pays off in less than 10 years for anyone who has an electricity price and associated additional costs (network fees, surcharges, etc.) in a high tariff greater than 90 lipa/kWh. Anyone with a lower price than that means they still have a valid contract under the old price list and will soon have up to 350 percent higher electricity prices. Therefore, it is worthwhile for every entrepreneur to install a power plant, some immediately, as their electricity prices have already risen, and some within 6-12 months as their prices will soon rise – says Stipeljković.
