According to Ukrainian government sources, Ukraine will soon unveil a comprehensive plan aimed at supporting citizens and businesses in restoring energy capabilities damaged by Russia and constructing new distributed power generation systems.
A pivotal measure within this plan involves implementing a short-term tax exemption policy for energy equipment. This tax exemption is stated to be in effect solely during the wartime martial law period, anticipated to end no later than January 1st, 2026.
Ukraine is offering tax exemptions on photovoltaic modules, inverters, batteries, and power generation units.
It is noteworthy that the Ukrainian parliament has yet to issue a formal bill outlining this tax exemption policy.
Ukrainian media reports indicate that the products exempt from customs duties and VAT include (this list may not be final; please refer to the final version of the bill for confirmation):
Steam turbines (excluding turbines used for ship propulsion systems);
Inverters (excluding inverter welding machines);
Lithium-ion batteries (excluding energy storage devices with AC and DC capacities less than 300W and individual lithium-ion batteries with capacities less than 200Ah);
Solar panels;
Generator sets with piston engines (excluding those for civil aviation);
Gas turbines;
Electrical machinery and equipment with built-in power supplies;
Electric motors and generators with a capacity exceeding 750 kVA (excluding electric generator sets);
Control panels and switchboards for controlling or distributing electric current (excluding those for automobiles);
Wind turbine generator components;
Water turbines and their components only;
Spur gears and helical gears;
Spark-ignition internal combustion engines and compression-ignition internal combustion engines;
Transformers, static converters, and inductors;
Control desks, panels, consoles, tables, cabinets, and other electrical equipment bases;
Wires, cables, and other conductors;
Binoculars, monoculars, and other optical equipment;
Geodetic tools, among others.
Due to Russia’s attacks on Ukraine’s power grid and power generation facilities over the past few months, Ukraine’s authorities have implemented rolling blackouts nationwide to prevent grid collapse. Recent heatwaves have further strained the grid, with most buildings in Kyiv experiencing power outages for at least 10 hours daily.
Ukraine’s Deputy Prime Minister has emphasized that restoring energy capabilities before the heating season commences is a top priority on the government’s agenda.
Amidst these challenges, Ukraine has witnessed a surge in demand for photovoltaic energy storage products. Currently, these products primarily enter the Ukrainian market through distribution channels in neighboring countries such as Poland, Slovakia, and Hungary.
