Russia's solar photovoltaic (PV)'s market continues its steady, policy-based growth with the addition of around 100 megawatts (MW) of installed capacity in 2025, bringing the total installed capacity to 3.1 gigawatts (GW), compared to 3 MW at the end of 2024, according to a new report from GlobalData, a global provider of data and analysis. The modest, but consistent, growth represents Russia's gradual approach toward the incorporation of renewables into its energy mix and its ongoing reliance on the country's very large supply of natural gas and nuclear generation as the primary sources of energy for power generation. "Utility-scale solar continues to be the primary driver of PV growth in Russia through the use of structured state-sponsored programs to develop utility-scale solar," said GlobalData Power Analyst Mohammed Ziauddin.
Policy Framework Drives Utility-Scale Growth
The primary element of Russia's renewable energy approach is via its Capacity Supply Agreement (CSA) framework; whereby, selected solar and wind projects receive fixed capacity payments, guaranteed for a period of up to 15 years, within the wholesale capacity and electricity market. This process protects developers from fluctuation in the price of electricity, providing the revenue certainty needed to develop capital-intensive projects over a long period of time.
Ziauddin indicated that these increases are most pronounced in regions with high solar irradiation levels, such as the South and parts of the East where the conditions are optimal for generating utility-scale energy. The CSA framework enables the addition of capacity and it is also aligned with the government's emphasis on technological sovereignty.
An important characteristic of the renewable energy auctions is that these projects must contain 50%-70% locally manufactured content and this threshold is anticipated to increase over time. This localization initiative has been critical in establishing the domestic solar manufacturing sector within Russia. The Moscow-based Hevel Group has become the largest player in Russia within the solar manufacturing sector and their facility is one of the largest solar cell manufacturing facilities in Russia. The Hevel Group uses heterojunction (HJT) technology, has completed over 100 projects and has a cumulative total capacity of greater than 1.6 GW.
Regional Activity and Major Projects
The southern republic of Dagestan has been a particular hotspot for new development. Earlier in March 2026, a significant 102.3 MW solar project was commissioned in the region. Built by Russian developer Novoye Energo Management LLC, it is the largest solar energy project in Dagestan and has already begun supplying electricity to the southern Russian grid. According to the Ministry of Energy of Dagestan, its planned production is equivalent to approximately 3% of the total electricity generated by all power plants in the republic.
This project is part of a broader wave of renewable construction in the area. Throughout 2025, work progressed on other major facilities, including what is set to become Russia's largest solar power plant in the Derbent district of Dagestan, a 100 MW project, as well as a 60 MW plant in the Nogai district.
Further investment signals are emerging from other southern territories. Moscow-based Solergy LLC has announced plans to invest around 1 billion rubles to build a 22 MW solar power plant in the Stavropol Territory, with commissioning expected in 2026. This would be the region's second solar plant, following the 100 MW Staromaryevskaya plant launched in 2019.
Distributed Generation and Remote Applications
In addition to developing large-scale farms, Russian authorities are also establishing motives to develop many small-scale, distributed solar generation systems. Individuals and businesses can place solar energy collection systems with a maximum output of 15 kW at their locations in order to receive credit for surplus power that is fed back into the local grid. Debit rates (feed/meter) for kWh fed back to the local grid range from approximately 1.7 RUB to 2 RUB ($0.02) dependent upon location.
The relatively successful utilization of solar equipment in remote areas of Russia can be achieved through the integration of solar PV, battery storage, and diesel power generation to form hybrid systems that provide viable economic solutions versus reliance on the current expense of obtaining and shipping diesel fuel.
According to Ziauddin, approximately $0.19-$0.27 are the levelized cost of electricity (LCOE) for new solar-plus-storage hybrid generation systems located in remote regions when constructed between 2021 and 2024. This represents a relatively low cost when compared to net generation using diesel fuel. An example is the twelve hybrid energy systems constructed in the Sakha Republic (also known as Yakutia) between 2021 and 2024, which collectively saved approximately 3596 tons of diesel fuel.
Future Outlook: Steady but Structured Growth
According to GlobalData, from today to the year 2035, Russia will increase its annual capacity of new solar; an average of 200 MW will be added each year. If this trend continues, by December 2026, Russia's solar capacity will reach 3.3 GW; 4.0 GW total by December 2029 and 5.0 GW or more by 2034.
Although growth is anticipated, analysts caution that renewables will remain a supporting element of Russia's energy system. The country's generation mix is still dominated by thermal generation (especially natural gas), which is projected to increase from 143.5 GW to 151.2 GW through 2035. In addition, a growing fleet of nuclear units will provide baseline support capacity for renewable expansion throughout the country. Therefore, renewable energy growth in Russia will occur as an orderly, controlled process focused on meeting established governmental objectives and improving domestic industrial capabilities; and not as a rapid transformation of the market through competition.
