1. September 26, 2013
NERC DRAFT RESOLUTION TO INTRODUCE “GREEN”
TARIFF FOR SOLAR PV OF HOUSEHOLDS
On September 24, 2013 the National Commission for Regulation of Energy Sector published the draft
resolution "On approval of the procedure for sale, accounting and payments for electricity generated from
solar energy by electric power objects (generating units) of private households "(hereinafter - the “Draft”) on
its official website (in Ukrainian, available at http://www.nerc.gov.ua/index.php?news=3398). For the reason
that on January 1, 2014 the relevant provisions of Article 15 of the Law of Ukraine "On Electric Power
Industry " (the “Law") shall enter into force, the Draft approves the Procedure of Sale, Accounting and
Payments for Electricity Generated from Solar Energy by Electric Power Objects (Generating Units) by
Private Households (hereinafter - the “Procedure") under the "green" tariff.
"Green" Tariff
According to the Law, the "green" tariff shall apply to generating objects with capacity of less than 10 kW,
and its level is guaranteed until 2030 at the following rates (Euro/kW*h ) depending on the date of putting
into service of generating units:
From 1.01.2014 till
31.12.2014
From 1.01.2015 till
31.12.2019
From 1.01.2020 till
31.12.2024
From 1.01.2025 till
31.12.2029
0,35864 0,322777 0,28691 0,25105
Definition of Domestic Households
The Procedure defines the terms necessary for the implementation of the provisions of the Law, including
the terms “private households (households)”, “consumer”, “consumer object” and so on. Thus, a private
household is defined as a consumer object at which electrical energy is used to meet the personal needs of
the consumer pursuant to a contract for the use of electricity. Consumer means a natural person who uses
electrical energy for domestic purposes under the contract on the use of electricity.
Thus, in accordance with the proposed definitions the Procedure shall apply only to cases where:
1) generating equipment (owned or leased) is installed on buildings or parts of buildings which belong to
individuals under the right of ownership or use; and
2) in the buildings electricity is used for domestic non-commercial purposes in accordance with a contract
on the use of electricity.
How to Obtain "Green" Tariff
Obtaining "green" tariff for domestic households shall provide the following stages:
1) installing generating equipment (total capacity not more than 10 kW) for solar energy by a consumer on
the roof or facade of buildings;
2) submitting an application (the form is contained in Annex 1 to the Procedure) to the energy supplier under
regulated tariff (oblenergo), on the licensed territory of which the building is located;
3) energy supplier installs electricity meters within 5 working days after the application is received (another
provision of the Procedure suggest that energy distributor is responsible for installation of meters, so this

2. contradiction must be removed from the Draft);
4) sale of electricity under "green" tariff on the basis of acceptance certificates (Annex 2 to the Procedure).
The payment is conducted within 10 days after each calendar month.
It should be noted that NERC's license to produce electricity for households with a view to selling under the
"green" tariff is not required.
Power Purchase Contract
Under the power purchase contract to be concluded between consumers and energy supplier the latter
undertakes to purchase electricity produced by the generating installation of the consumer each calendar
month in the amount exceeding the consumed electricity under the "green" tariff. Thus, it is expected that
monthly calculation of the difference between the supplied to the grid and consumed electricity shall be
conducted; the cost of such difference shall be paid to the current account of the consumer specified in the
contract.
Conditions and Guarantees for Sale of Electricity
Contract of sale of electricity shall set the maximum allowed capacity of generating equipment, which the
consumer has the right to establish. The Procedure provides for solution of situations where the actual
installed capacity exceeds the maximum allowed one. In this case, the consumer has to apply for increase
of capacity (under the standard accession procedure or accession, which is not standard) pursuant to the
Rules for connecting electricity generating equipment to electric grids, approved by NERC resolution of
17.01.2013 № 32.
The Procedure establishes a mandatory scheme for installation of electricity equipment in accordance with
Appendix 1. Electricity which is generated from solar energy by generating objects of private households
and is supplied to the grid of the energy supplier has to match the energy quality standards established by
the State standards (DSTU GOST 13109-97).
In addition to warranties on purchase of electricity under the "green" tariff contained in the Law, the
Procedure establishes an additional guarantee, namely the obligation of an energy supplier, in licensed
territory of which the household is located, to purchase under the "green" tariff electricity produced by
generating objects of the household, the total installed capacity of not more than 10 kW.
Currently the project is at the stage of public discussion until October 25, so there still may be some
changes to its provisions. In any case, we may expect that the Draft is approved and enters into force in
January 2014.
We always follow the changes in Ukrainian legislation and will keep you timely
updated thereon.
Should you have any additional questions and comments, please, contact us:
Maksym Sysoiev, LL.M. Attorney-at-Law,Counsel Email maksym.sysoiev@danevychlaw.com
Leonid Cherniavskyi, Associate Email leonid.cherniavskyi@danevychlaw.com