On 11 August 2026, the National Energy and Utilities Regulatory Commission of Ukraine (NEURC) approved amendments to the rules governing active consumers under the electricity self-generation mechanism. The changes concern payments for electricity fed into the grid, settlements without offsetting, businesses operating under the simplified taxation system, and electricity generated by third-party installations.
Below, we explain what changed in the electricity self-generation mechanism in 2026, how active consumers can sell surplus electricity, and what the new rules mean for solar PV owners, businesses and installers.
What is the electricity self-generation mechanism?
The self-generation mechanism allows an active consumer to use generated electricity for their own needs and sell surplus electricity fed into the grid.
For example, a business operates its own solar power plant.
When solar generation is insufficient to cover the facility’s current consumption, the required electricity is additionally drawn from the grid. When generation exceeds the facility’s consumption, the surplus can be fed into the grid and sold under the relevant agreement.
For this purpose, the consumer obtains the status of an active consumer and enters into an electricity purchase and sale agreement under the self-generation mechanism.
Importantly, the mechanism is primarily focused on self-consumption of electricity, while the surplus can be sold.
What did NEURC change in August 2026?
One of the key changes is the possibility of making settlements under the self-generation mechanism without offsetting.
The self-generation mechanism involves two electricity flows:
- electricity drawn from the grid by the active consumer;
- electricity fed into the grid by the active consumer.
The new rules allow the agreement to provide for separate settlements for these operations.
How do settlements without offsetting work?
In this case, there are effectively two separate transactions.
Electricity drawn from the grid
The active consumer pays for electricity received from the grid in accordance with the terms of the electricity supply agreement.
Electricity fed into the grid
Electricity fed into the grid by the active consumer is paid for separately.
NEURC has also established the payment deadline: payment for electricity fed into the grid by an active consumer must be made by the 15th day of the month following the settlement month.
This means that electricity purchased from the grid and surplus electricity sold to the grid can be treated as separate financial transactions.
What has changed for small businesses?
The new rules specifically address business entities operating under the simplified taxation, accounting and reporting system.
For such businesses, an electricity purchase and sale agreement under the self-generation mechanism must provide for the possibility of settling payments for electricity fed into and drawn from the grid without offsetting.
In practice, this allows the two transactions to be separated:
electricity drawn from the grid → payment to the supplier;
electricity fed into the grid → payment to the active consumer.
According to NEURC, these changes are intended to simplify accounting and tax administration for small businesses.
Can a business sell surplus electricity from a solar PV system?
Yes. Ukrainian legislation allows an active consumer to sell surplus electricity fed into the grid under an electricity purchase and sale agreement within the self-generation mechanism.
The agreement is concluded with an electricity supplier and forms an annex to the consumer’s electricity supply agreement.
Electricity supplied to the active consumer and electricity purchased from the active consumer’s generating installations is generally traded at freely negotiated prices, except in cases specifically provided for by law.
Therefore, simply owning a solar PV system does not automatically mean that surplus electricity will be purchased at a fixed or guaranteed price.
Self-generation is not the same as the feed-in tariff
These mechanisms should not be confused.
Under the self-generation mechanism, the basic principle is electricity generation for self-consumption with the possibility of selling surplus electricity.
The sale of electricity under Ukraine’s feed-in tariff, commonly referred to as the “green” tariff, is governed by separate provisions and involves a different contractual framework.
For businesses planning a solar PV installation, it is therefore important to determine the intended operating model of the facility at the design stage.
Can the generating installation belong to a third party?
NEURC has also clarified how the volume of electricity fed into the grid by an active consumer is determined.
This volume may include electricity produced by third-party generating installations if such installations are connected to the electricity network or electrical installations of the active consumer and the electricity they generate has not been used for self-consumption.
This means that the regulatory framework allows third-party generating installations to be incorporated into the self-generation model, provided that the applicable requirements are met.
How does an energy storage system fit into this model?
The self-generation mechanism establishes the rules for electricity metering, sale and settlements. An energy storage system serves a different purpose: it enables the facility to manage when generated electricity is used.
For example, surplus solar generation does not necessarily have to be immediately fed into the grid. It can be stored for later use at the facility if this operating strategy is provided for by the technical solution.
Businesses should therefore assess the facility’s entire energy model: on-site generation, consumption profile, electricity drawn from the grid, potential surplus exports and energy storage operation.
What should solar installers consider?
If a customer intends to operate under the self-generation mechanism, this should be taken into account before the solar PV system is designed.
The key considerations are not limited to solar module capacity and inverter selection. They also include:
- the facility’s actual electricity consumption profile;
- the balance between generation and consumption;
- the possibility of feeding surplus electricity into the grid;
- commercial electricity metering;
- the selected contractual model;
- the availability and operating strategy of an energy storage system, if included in the project.
Therefore, the question “What will happen to surplus solar generation?” should ideally be addressed at the technical design stage.
The main practical change is greater flexibility in the settlement mechanism.
An active consumer can use on-site generation to cover its own consumption, feed surplus electricity into the grid and, where provided for by the agreement, receive separate payment for that electricity without offsetting it against the cost of electricity drawn from the grid.
For business entities using the simplified taxation system, the possibility of settlements without offsetting is expressly addressed by the new regulatory changes.
At the same time, installing a solar PV system alone is not sufficient to operate under the self-generation mechanism. Appropriate commercial metering, contractual arrangements and a compliant technical configuration of the facility are also required.
The 2026 NEURC amendments do not change the fundamental principle of self-generation: on-site generation is primarily used to meet the consumer’s own electricity needs, while surplus electricity may be sold.
However, the new rules make the settlement mechanism more flexible by allowing settlements without offsetting, establishing a separate payment procedure for electricity fed into the grid, and clarifying provisions for small businesses and third-party generation.
For solar PV owners, this makes it increasingly important to design on-site generation as part of an integrated energy system:
generation → self-consumption → energy storage → surplus export to the grid.
FAQ: electricity self-generation in Ukraine in 2026
What is an active consumer?
An active consumer is a consumer, or a group of consumers, that consumes electricity and may also generate, store and/or sell surplus generated or stored electricity, provided that such activities do not constitute its primary professional or commercial activity.
Can a business sell surplus electricity from its own solar PV system?
Yes. An active consumer may sell surplus electricity fed into the grid under an electricity purchase and sale agreement within the self-generation mechanism.
At what price is surplus electricity sold?
Electricity fed into the grid by an active consumer’s generating installations is generally purchased at freely negotiated prices, except in cases specifically provided for by law.
Is offsetting mandatory?
No. The new rules provide for the possibility of separate settlements for electricity fed into and drawn from the grid without offsetting. For business entities operating under the simplified taxation system, the relevant agreement must provide for the possibility of such settlements.
When is electricity fed into the grid paid for?
Under the new rules, payment for electricity fed into the grid by an active consumer must be made by the 15th day of the month following the settlement month.
Is an energy storage system required for self-generation?
No. An energy storage system is not a mandatory requirement for participation in the self-generation mechanism. An ESS can be incorporated into the facility’s energy system to store electricity for later use in accordance with the selected technical solution.
