The state of the ukrainian market for SPP steel structures

During his presentation at a meeting of the Committee on roofing, facade structures, and light steel frame structures of the Ukrainian Steel Construction Center (USCC) Association, Ihor Khoroshilov, co-founder and chief engineer of Metsys, discussed trends and characteristics of the Ukrainian market for steel structures used in solar power plants. GMK Center presents the key points of his presentation.

Market volume dynamics

Market dynamics align with the baseline (average) development scenario: volumes are growing steadily and predictably, by approximately the same amount each year — without sharp spikes, but also without slumps.

Growth is constrained by several factors: quotas on shipments to Europe, the introduction of the Carbon Border Adjustment Mechanism (CBAM), which further limits European exports, as well as a shortage of equipment production capacity.

Nevertheless, steady and sustained growth is projected continuously through 2028, and a number of analysts extend this outlook to 2035.

Market structure by mounting type

According to estimates, approximately 80% of the total metal volume is accounted for by ground-mounted systems, and 20% by rooftop systems. Among rooftop systems, flat and pitched roofs are roughly equally divided.

Ballast mounting is used exclusively on flat roofs and, in some cases, on the ground. Concrete-mounted posts have been relegated to the residential segment — typically when there is no access for drilling equipment. The most common type of foundation is driven piles: of the 80% of ground-mounted systems, 75% are mounted on piles.

The cost of land for solar power plants already exceeds the cost of photovoltaic modules (whose prices continue to fall), making east-west-oriented systems economically viable. It is expected that by the end of this year, the volume of construction of east-west systems will exceed that of south-facing systems.

Technology competition: SPPs vs. storage systems and cogeneration

Last year, as expected, was a busy one for the energy storage market. Modern containerized battery systems are already capable of supplying electricity to an average industrial enterprise for an entire work shift — for example, a plant that processes approximately 1,000 tons of rolled metal per month.

Businesses are increasingly investing in energy storage and cogeneration (the simultaneous production of heat and electricity) rather than in solar power plants. The reason is simple: these technologies together meet all of a company’s energy needs, whereas solar panels address only part of the problem.

As a result, the construction of industrial solar power plants has slowed down, while residential solar installations are experiencing a real boom—their sales have increased approximately fourfold compared to last year. Experts predict that once the market becomes saturated with storage systems, investors will turn their attention back to solar power generation. Electricity prices continue to rise, so the benefits of owning a solar power plant will only increase.

Key features of operating in the solar energy market

The solar energy market differs significantly from related markets and imposes specific requirements on suppliers:

1. High operational dynamics. To respond quickly, it is necessary to maintain substantial inventory of raw materials, as a single industrial facility may require 300–500 tons of a single product grade at a time. In our case, inventories amount to approximately 2,500 tons, with plans to increase them to 3,500–4,000 tons, taking into account port-related risks and projected summer demand peaks.
2. Tight delivery deadlines. Delivery can begin on the third day after the prepayment is made. A 500-ton order is typically completed in no more than two months.
3. High equipment requirements. Modern equipment is required: fully robotic continuous-cycle lines are used, which handle strip straightening, perforation, profiling, re-straightening, cutting, and forming of the finished package.
4. Closed production cycle. In addition to steel profiles, aluminum products and concrete ballast (for flat roofs) must be manufactured.
5. Storage facilities. All raw materials for metalworking, semi-finished products, and finished goods must be stored exclusively in enclosed spaces.
6. Wide product range. To ensure sustainable market presence, all segments must be covered: ground-mounted systems, systems for flat and pitched roofs, even if individual items are not very profitable.
7. Design within the scope of supply. Design is primarily carried out at the supplier’s expense. Lead time is 1–2 days, with the final specification for metal usage provided.

Raw materials and corrosion protection

The primary raw material used is hot-dip galvanized S350 steel with a coating weight of 275 and 350 g/m². Ukrainian structural steel has been unavailable since the start of the war, and the Asian market is closed off by anti-dumping duties and is not price-competitive. Turkey remains the sole supplier, offering high-quality and consistent steel (only one complaint in two years of operation).

Finished products are supplied in galvanized form with a 275 g/m² coating (20 μm). Additional painting is not required. In indoor environments, the service life of galvanized rolled steel products significantly exceeds that of painted elements.

The processing cost in the light steel structure market is 8–12 thousand UAH/t (for large one-time volumes), while in the welded steel structure market it is approximately 30 thousand UAH/t.

Export and certification

To enter export markets, companies must obtain certification under the EN 1090 standard. This standard regulates the quality control system within the company, as well as the requirements for manufactured profiles and finished structures.

Compliance with the standard requires the implementation of a significant amount of internal documentation and procedures; however, it is precisely this compliance that ensures not just control, but systematic assurance of product quality.

The company is currently undergoing the CE marking procedure (TÜV audit). Until it is obtained, export activities are limited to neighboring countries: Moldova, Romania, Poland (partially), Hungary, and the Baltic states. Full entry into the European market is possible only after obtaining the EN 1090 certificate.