April earnings drop for feed-in premium-backed solar plants
Greece’s solar sector is facing increasing financial strain as prolonged periods of zero and negative electricity prices, together with rising production curtailments, are reducing revenues for solar producers nationwide. Market participants say the impact was visible in April for projects operating under feed-in premium support schemes. They report a sharp fall in earnings during the month.
For a typical solar plant, revenues in April were more than 50% lower than in the same month of 2025. Industry sources add that some large-scale operators saw income declines of up to 60% versus what they would have earned without curtailments and negative pricing conditions.
Transmission-connected utility projects face more frequent output limits
The effects are described as most severe for utility-scale solar projects connected to the transmission network. These installations are more often subject to output restrictions set by network operators seeking to maintain grid stability during periods of excessive renewable generation. The restrictions are linked to operational needs on the grid rather than to demand alone.
While some investors initially treated April’s weak performance as temporary, citing lower electricity demand during the Easter holiday period, developments in May point to a more persistent pattern. Market participants say the shift is increasingly structural as conditions continue beyond the holiday window.
May shows repeated zero and sub-zero wholesale price hours
Industry executives report that nearly every day in May included several hours when wholesale electricity prices fell to zero or below zero. They say this continued pricing environment further undermined project profitability. The combination of negative pricing and curtailments is contributing to ongoing revenue deterioration.
The worsening revenue outlook is raising concerns about whether solar investments can remain financially sustainable over the long term. Executives also highlight the ability of projects to meet financing requirements and debt repayment obligations under current market conditions.
Warnings on loan quality and storage gaps
Senior industry leaders warn that consequences may extend beyond renewable generation economics. Metlen Chief Executive Officer Evangelos Mytilineos cautioned that sustained revenue pressure could increase problematic loans tied to solar projects where earnings are no longer sufficient to cover investment costs.
Aktor Group CEO Alexandros Exarchou raised similar concerns, pointing to rapid expansion of solar capacity without adequate investment in battery energy storage systems. He warned that the growing mismatch between renewable output and storage availability could create broader challenges for the electricity market and potentially expose the banking sector to significant financial risks in coming years.
