Finland

2024 Country Update

National PV Policy

Finland has an objective to become a carbon neutral society by 2035 and proceed to carbon negativity. The Government of Prime Minister Petteri Orpo will prepare a new national Energy and Climate Strategy during 2025. In the Programme of Prime Minister Petteri Orpo's Government (20 June 2023), a goal for Finland to become a leader in clean energy and a positive climate handprint is highlighted.

Approximately 80% of all greenhouse gas emissions in Finland come from energy production and consumption, including transport. One of the main solutions to achieve carbon neutrality is direct and indirect electrification of energy use with carbon-free electricity. In 2024, carbon-neutral electricity already accounted for 95% of Finland’s electricity production. The goal is to double the production of carbon-free electricity production (nuclear, wind, PV). Finland aims to become a key player in the hydrogen economy in Europe. In addition, Finland aims to lead the way in the capture and utilisation of biogenic carbon dioxide (technological carbon sinks). The increase of wind power and PV production highlights the importance of introducing various flexible solutions such as energy storage and system integration.

There is no specific national strategy nor objectives for PV power generation in Finland. Earlier PV has mainly been considered an energy technology that can be used to enhance the energy efficiency of buildings by producing electricity for self-consumption. However, interest in grid-connected PV systems has increased during the last few years.

To support PV installations, the Ministry of Economic Affairs and Employment and Business Finland can grant investment subsidies to renewable energy projects.  Energy aid may be granted to projects that promote new technology and its commercial utilisation. The support is only intended for companies, communities, and public organizations, and it is provisioned based on applications. The need for and level of aid are assessed on a case-by-case basis. Agricultural companies are eligible to apply for an investment subsidy of up to 40% for PV installations from Centres for Economic Development, Transport, and the Environment. Individuals are eligible for a tax credit for the labour component of the PV system installation. In 2024, the sum was up to 40% of the total labour cost, including taxes, resulting in up to about 10-15% of the total PV system cost.

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Research, Development and Demonstration

In Finland, there are no specific budget lines, allocations, or programmes for solar energy R,D&D, but PV is funded as part of open energy programmes.

The research and development work at universities and research institutes is mainly funded by the Research Council of Finland and Business Finland, which also finance company-driven development and demonstration projects, as well as the European Union funding programmes.

Research and development topics related to PV range from material science to PV systems, grid integration, and solar economy. Research and development activities are spread out over a wide array of universities and research institutes: Aalto University, Lappeenranta-Lahti University of Technology and Tampere University, Metropolia, Satakunta and Turku Universities of Applied Science, as well as VTT Technical Research Centre of Finland.

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Industry and Market Development

For a long time, the Finnish PV market was dominated by small off-grid systems. There are more than half a million holiday homes in Finland, a significant proportion of which are powered by an off-grid PV system capable of providing energy for lighting, refrigeration, and consumer electronics. By the end of 2023, the installed off-grid PV capacity was estimated to be approximately 23 MW.

Presently, the market for grid-connected systems heavily outnumbers the market of off-grid systems. Since 2010, the number of grid-connected PV systems has gradually increased. In early 2024, the installed grid-connected PV capacity was estimated to be approximately 1 000 MW. In 2024, PV represented 1.4% of the total electricity production in Finland.

 

The grid-connected PV systems are still mainly roof-mounted installations on public and commercial premises and in private dwellings. The first multi-megawatt ground-mounted PV plant in Finland, with a total power of 6 MW, started its operation in 2018 in Nurmo. The largest PV plant in Finland started its operation 2024 in Rauma. This PV plant of 32 MW is owned by CPC Lakarin Aurinkovoima Oy. In recent years several companies have announced their plans for multi-megawatt-scale PV plants, even up to a scale of hundreds of MW. According to Renewables Finland, by January 2025, more than 23 300 MW of planned solar power projects had been published in Finland.

Integrating power storage in PV plants is often considered beneficial for balancing variable PV production. In addition, there is an increasing interest in combining PV production with wind power production, thus balancing the variation of power production, using a common infrastructure, and improving the cost-effectiveness of the projects.

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Participants

Task - 0 - Exco

Innovation Funding Agency Business Finland

WIKMAN Karin

VTT Technical Research Centre of Finland

MÄKINEN Tuula

Primary Exco

Task - 1

Lappeenranta-Lahti University of Technology LUT

BREYER Christian

Task - 13

Fortum Renewables Oy

MARKKANEN Magnus

Turku University of Applied Sciences

RANTA Samuli

Task - 15

Aalto University School of Science

HALME Janne

Task - 19

Turku University of Applied Sciences

HUERTA MEDINA Hugo

RANTA Samuli

University of Turku

JOUTTIJÄRVI Sami