Finland’s total solar panel production capacity (installed) reached approximately 1,000 megawatts (MW) at the end of 2023, according to the Finnish Energy Authority [Energiavirasto]. ⁵

Projected increase by 2030: Estimates suggest a significant rise, potentially reaching 7 gigawatts (GW) [DNV]. ⁶

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Coal: Cost: $60 – $143 per MWh

Natural Gas:

• Combined Cycle: $45 – $70 per MWh
• Peaking Plants: $90 – $150 per MWh

Solar Photovoltaic (PV):

• Utility-Scale: $28 – $60 per MWh
• Residential: $100 – $300 per MWh

Wind

• Onshore: $30 – $60 per MWh
• Offshore: $70 – $150 per MWh

Hydropower: Cost: $30 – $60 per MWh

Nuclear: Cost: $90 – $140 per MWh

Biomass: Cost: $60 – $120 per MWh

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Hydropower and Wind Energy: Each contributing roughly 18% to the country’s power mix.

Solar Power: Representing 0.8% of the total generation.

Wood Fuels: Used significantly, making up 12.8% of the mix.

Imports: Comprising 2.2% of the total electricity supply.

Other sources include coal (1.9%), oil (0.2%), gas (0.8%), peat (1.4%), and miscellaneous sources (2.0%)

In Finland, the average daily availability of electricity from the national grid is nearly 24 hours per day. Finland is known for its highly reliable and efficient power grid, with minimal outages. ⁹

A range of 20,000 to 25,000 residential solar panel installations in  Finland by the end of 2021. The number of residential solar panel installations in Finland has been growing steadily. As of recent reports, by the end of 2022, there were approximately 40,000 residential solar panel systems installed across the country. ¹⁰

As of 2023, Finland had around 25 solar panel farms installed. The number of projected solar farms in the coming years is expected to grow significantly due to increasing investments and governmental support for renewable energy. By 2025, Finland is projected to have an additional 20-30 solar farms, bringing the total to approximately 45-55 solar farms.¹¹

Current Demand:  current market size is likely in the hundreds or low thousands of installations. As of 2023, it is estimated that there are several thousand off-grid solar installations in Finland, primarily in rural areas and recreational properties. ¹²

Projected: Electricity generation in Solar Energy market is projected to amount to 575.00m kWh in 2024. An annual growth rate of 14.04% is expected (CAGR 2024-2029).

Current Demand: ¹³

• Explosive Growth: The market has seen a boom in recent years, especially for rooftop installations on homes and businesses.
• Market Size: Estimates suggest the on-grid solar market reached a retail value of $174 million in 2022, with new micro-production capacity exceeding 120 MW

Projected Growth:

Ambitious Goals: Finland has set ambitious renewable energy targets. The Ministry of Economic Affairs and Employment projects electricity produced by solar panels to grow from 0.1 TWh in 2020 to 1.1 TWh by 2030 and a massive 6.0 TWh by 2050

Grid Operator Estimates: Fingrid, the Finnish grid operator, estimates a potential on-grid solar power plant capacity of 7 gigawatts (GW) by 2030

Solar Panel Installers/Technicians: ¹⁴

• Entry-Level: $2,500 – $3,000
• Experienced: $3,000 – $4,000

  Electrical Engineers (specialized in solar energy):

• Entry-Level: $3,500 – $4,000
• Experienced: $4,500 – $6,000

  Project Managers:

• Entry-Level: $3,500 – $4,500
• Experienced: $5,000 – $6,500

  Sales and Business Development:

• Entry-Level: $2,500 – $3,500
• Experienced: $3,500 – $5,000

Administrative and Support Staff:

• Entry-Level: $2,000 – $2,500
• Experienced: $2,500 – $3,500

Most recent estimate: Finland’s statistics office, Statistics Finland, provides the most up-to-date population figures. According to their preliminary data from end of April 2024, the population was 5,613,972. ¹⁵

Mid-year 2023 estimate: Other sources like Worldometer use estimates based on United Nations data. Worldometer suggests a population of approximately 5,549,763 for Finland in June 2024, likely based on a mid-year 2023 estimate.

Factory Rent or Mortgage ¹⁶

The cost of industrial space for a solar panel factory in Finland varies based on location and size. While specific data for Finland is scarce, it is important to consider the general trends in European industrial real estate. In Finland, the average monthly rent for industrial spaces can be around $6-$8 per square meter. If a factory spans 10,000 square meters, the monthly rent could range from $60,000 to $80,000.

Utility ¹⁷

The utility costs for industrial facilities in Finland encompass electricity, water, and waste management. For electricity, industrial rates in Finland can vary but tend to be around $0.07 to $0.10 per kWh. Water and waste management costs are significant as well. The average cost for process water in Finland is approximately $0.50 to $1.00 per cubic meter.

Administrative cost

• Administrative Staff: Salaries for administrative personnel, including managers, HR staff, accountants, and office assistants. In Finland, the average monthly salary for an administrative assistant is around $2,500 to $3,500
• Executive Salaries: Compensation for top executives and senior managers, which can vary widely depending on the size of the company. Executive salaries in Finland can range from $5,000 to $15,000 per month
• Benefits: Costs for employee benefits such as health insurance, retirement plans, and other perks. These typically add an additional 20-30% to the salary expenses.

Finland’s energy and climate policies are centered on achieving carbon neutrality by 2035. Here are some key points about Finland’s energy infrastructure: ¹⁸

Diverse Energy Mix: Finland has a diverse energy system, which reduces dependence on any single energy source. This mix includes nuclear power, renewable energy, cogeneration, and electricity imports from neighboring countries.

Low Reliance on Fossil Fuels: Finland has one of the lowest levels of reliance on fossil fuels among IEA member countries. In 2021, fossil fuels covered only 36% of Finland’s total energy supply, much lower than the IEA average of 70%.

Nuclear Energy: Finland maintains a high share of nuclear energy, contributing to its carbon neutrality goals.

Renewable Energy: The country aims to increase electricity generation and heat production from renewables, emphasizing bioenergy (forestry biomass) and wind power.

Energy Efficiency: Finland focuses on improving energy efficiency and electrifying most energy demand across the economy

In Finland, solar panel production is governed by various regulations and policies aimed at promoting environmental sustainability, ensuring product quality and safety, and supporting renewable energy development. Here are some of the key government regulations and frameworks surrounding solar panel production in Finland: ^{18 19}

1. Environmental Regulations: Finnish environmental legislation applies to the manufacturing processes involved in solar panel production. This includes regulations concerning emissions, waste management, and the use of chemicals and materials that impact the environment.

2. Product Standards and Certification: Solar panels manufactured in Finland must adhere to European Union (EU) standards and certifications, ensuring they meet quality, performance, and safety requirements. Products must comply with standards such as CE marking (Conformité Européenne) to be sold in the EU market.

3. Energy Efficiency Requirements: Finnish regulations may include requirements for the energy efficiency of solar panels. This could involve efficiency standards that panels must meet to qualify for government incentives or subsidies.

4. Grid Connection and Integration: Regulations may govern how solar panels are integrated into the national grid. This includes technical standards for grid connection, ensuring that solar energy systems do not disrupt the stability and reliability of the electricity grid.

5. Building Codes and Permits: Installing solar panels on buildings in Finland requires adherence to building codes and obtaining necessary permits from local authorities. These regulations ensure that installations are safe, structurally sound, and compliant with zoning and aesthetic requirements.

6. Subsidies and Incentives: The Finnish government offers subsidies and incentives to promote solar energy production and use. Manufacturers may need to comply with specific criteria to qualify for these financial supports, such as using domestically produced components or meeting energy efficiency standards.

7. Labor Regulations: Labor laws and regulations in Finland ensure that workers involved in solar panel production are treated fairly and work in safe conditions. This includes compliance with employment contracts, occupational health and safety standards, and regulations related to working hours and wages.

8. Trade and Export Controls: Regulations governing international trade and export controls may apply to solar panel manufacturers in Finland, especially concerning the export of technology, components, or finished products.

9. Research and Development Support: The Finnish government may provide support for research and development initiatives aimed at advancing solar panel technology, improving manufacturing processes, and increasing efficiency.

10. Data Protection and Intellectual Property: Regulations concerning data protection and intellectual property rights safeguard innovations and proprietary technologies developed within the solar panel production sector.

These regulations collectively aim to foster a sustainable and competitive solar industry in Finland while ensuring that products meet high standards of quality, safety, and environmental responsibility. Manufacturers and stakeholders in the solar panel production sector must stay informed about these regulations to comply with legal requirements and benefit from supportive government policies.

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Investments in Solar Energy

National Energy and Climate Strategy

Finland’s National Energy and Climate Strategy aims for significant reductions in greenhouse gas emissions and an increase in renewable energy production. This includes support for solar energy through various policies and financial mechanisms.

Research and Development (R&D)

The Finnish government, through organizations like Business Finland, invests in R&D for renewable energy technologies, including solar power. This supports the development of new technologies and innovations in the solar sector.

Public-Private Partnerships

Finland encourages public-private partnerships to boost solar energy projects. These collaborations often involve government funding and private sector expertise to develop large-scale solar projects.

Subsidies and Incentives

Investment Grants

The government offers investment grants to companies and households that install solar panels. These grants can cover a significant portion of the installation costs, making solar energy more accessible.

Feed-in Tariffs

While Finland does not have a traditional feed-in tariff system, there are mechanisms in place that ensure solar energy producers can sell their excess energy back to the grid, providing a financial return on their investment.

Tax Incentives ²¹

Tax deductions and incentives are available for both individuals and businesses investing in solar energy. This includes deductions for the cost of solar panel installation and other related expenses.

Subsidies for Housing Companies

Housing companies in Finland can receive subsidies to install solar panels on apartment buildings. This initiative aims to increase the use of solar energy in residential areas.

Specific Programs and Projects

Energy Aid Program

Managed by the Ministry of Economic Affairs and Employment, the Energy Aid program provides financial support for renewable energy projects, including solar power. This program aims to increase energy efficiency and promote the use of renewable energy sources.

Climate Fund

The Finnish Climate Fund supports projects that help Finland achieve its climate goals. This includes investments in renewable energy projects, such as solar power, to reduce greenhouse gas emissions.

Municipal Initiatives

Many Finnish municipalities have their own initiatives to promote solar energy. This includes local subsidies, support programs, and educational campaigns to encourage the adoption of solar technology.

EU Funding

Finland also benefits from various European Union funding programs aimed at promoting renewable energy. These programs provide additional financial support for solar energy projects and infrastructure development.

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Installed Solar Projects

Kivikko Solar Plant:

Located in the Helsinki district of Kivikko, this photovoltaic plant boasts around 3,000 solar panels. Covering approximately one hectare on the Ski Hall’s roof, it’s one of the largest solar plants in Finland. The Kivikko Solar Plant’s output exceeds 340 kW, estimated to reach about 800 megawatt-hour.

Suvilhati Solar Plant:

Completed in 2015, the Suvilhati Solar Plant was Finland’s most prominent photovoltaic energy source before the Kivikko plant. Located in the Helsinki district of Suvilhati, it operates with 1,194 solar panels.

Helsinki Solar Power Plant

One of the largest solar power plants in Finland, the Helsinki Solar Power Plant, is located on the rooftop of the Kivikko sports park. This facility has a capacity of approximately 850 kWp (kilowatt peak) and produces around 700 MWh of electricity annually, powering local municipal facilities and feeding excess power into the grid.

Tampere University of Technology (TUT) Solar Park

The TUT Solar Park is a research-oriented solar installation at Tampere University of Technology. It includes various types of solar panels for research purposes, with a total capacity of around 300 kWp. This project is instrumental in studying the performance and efficiency of different solar technologies in Finnish climatic conditions.

Fortum Solar Projects

Fortum, a major energy company in Finland, has several solar projects. Notably, Fortum’s Espoo and Joensuu solar power plants have a combined capacity of about 1 MWp. These installations are part of Fortum’s broader strategy to integrate more renewable energy into their portfolio.

Lahti Energy Solar Plant

Lahti Energy operates a solar power plant in Lahti with a capacity of 300 kWp. This plant is part of the city’s initiatives to increase the use of renewable energy sources and reduce carbon emissions.

Projected and Upcoming Solar Projects

Huittinen Solar PV Park

The Huittinen Solar PV Park is a 475MW Solar PV power project located in Satakunta, Finland. It is being developed by OX2. The project is currently in permitting stage. The project is expected to enter commercial operation in 2027. The project is owned by OX2.

Harjunpaa Solar Power Project

Harjunpaa Solar Power Project is a 430MW Solar PV power project in Satakunta, Finland. The project is expected to come online by 2025. The project is currently in announced stage.

Helen Uusikaupunki Solar PV park

The 206MW Helen Uusikaupunki Solar PV park is located in Finland Proper, Finland. It is owned by Helen. The Solar PV project is currently in permitting stage. The commercial operation of the project is expected in 2024.

Vuotsinsuo Solar PV Park

The Vuotsinsuo Solar PV Park is a 160MW Solar PV power project. It is planned in Northern Savonia, Finland. The project is currently in permitting stage. It will be developed by Ilmatar Energy. Post completion of construction, the project is expected to get commissioned by 2025. Ilmatar Energy is the owner of the project.

Alajarvi Solar PV Park

The 150MW Solar PV project, Alajarvi Solar PV Park is expected to get commissioned by 2026. It is being developed by Ilmatar Energy. The project is currently in permitting stage. Ilmatar Energy is the owner of the project.

Vaasa Battery Factory Solar Plant

The upcoming battery factory in Vaasa, being developed by the consortium including Northvolt, is planned to include a large-scale solar power plant. The solar installation is expected to contribute significantly to the factory’s energy needs, with a projected capacity of several megawatts.

Hamina Solar Park

The Hamina Solar Park is a proposed project that aims to have a capacity of approximately 10 MWp. This project is expected to be one of the largest solar parks in Finland, providing substantial amounts of renewable energy to the local grid.

Salo Solar Farm

Planned for the Salo region, this solar farm aims to leverage the area’s ample sunlight and flat terrain to generate renewable energy. The project is expected to have a capacity of around 5 MWp and will supply power to local businesses and households.

Lappeenranta University of Technology (LUT) Solar Projects

LUT is planning to expand its solar research and capacity with new installations. These projects will not only generate power but also serve as testbeds for new solar technologies and integration methods, with capacities expected to range from several hundred kWp to a few MWp.

²⁵

1. Naps Solar SystemsWebsite: Naps Solar

Overview: Naps Solar Systems is one of the oldest and most experienced solar energy companies in Finland. They focus on designing, manufacturing, and supplying solar photovoltaic (PV) systems. Their solutions are tailored for both residential and commercial use, and they also provide off-grid and hybrid systems.

Key Activities:

• Solar panel manufacturing
• Custom solar energy solutions
• Off-grid and hybrid systems

2. Fortum

Website: Fortum

Overview: Fortum is a leading energy company in Finland that is actively involved in solar energy among other renewable energy sources. They focus on large-scale solar projects and are engaged in both the development and operation of solar power plants.

Key Activities:

• Development and operation of solar power plants
• Investment in solar energy projects
• Integration of solar energy into smart grids

3. Helen Ltd

Website: Helen Ltd

Overview: Helen Ltd is a major energy company in Finland that provides a variety of energy solutions, including solar energy. They offer solar panel installations for homes and businesses, as well as comprehensive solar energy services.

Key Activities:

• Solar panel installation services
• Energy storage solutions
• Solar energy consulting and planning

4. Solnet

Website: Solnet

Overview: Solnet is a Finnish company specializing in smart solar energy solutions. They provide advanced solar PV systems that are integrated with smart energy management systems to optimize energy production and consumption.

Key Activities:

• Smart solar PV systems
• Energy management solutions
• Solar energy monitoring and optimization

5. Vattenfall Oy

Website: Vattenfall

Overview: Vattenfall Oy, the Finnish subsidiary of the Swedish energy company Vattenfall, is involved in various renewable energy projects, including solar energy. They focus on providing sustainable energy solutions and integrating solar power into their energy mix.

Key Activities:

• Solar energy projects and investments
• Sustainable energy solutions
• Integration of solar power into the energy grid

6. Solarigo Systems Oy

Website: Solarigo

Overview: Solarigo Systems Oy specializes in turnkey solar power solutions for businesses and public sector clients. They handle everything from planning and installation to maintenance and monitoring.

Key Activities:

• Turnkey solar power solutions
• Planning and installation of solar systems
• Maintenance and monitoring services

7. Savosolar Oyj

Website: Savosolar

Overview: Savosolar is known for its innovative solar thermal solutions. They design and manufacture high-performance solar thermal collectors and systems, focusing on large-scale applications like district heating and industrial processes.

Key Activities:

• Solar thermal collector manufacturing
• Large-scale solar thermal systems
• Solutions for district heating and industrial processes