Loan agreements signed during Greece's solar boom assumed a level of revenue the market no longer delivers. Industry sources say producers are being asked to meet those original obligations regardless, even as curtailments and negative pricing cut deeper into what projects actually earn. With no immediate solution in sight, projects already carrying overdue loans face the risk of being classified as non-performing exposures. The pressure is particularly acute for investors without sufficient cash reserves, including recently commissioned projects that have yet to build up revenues. Energy communities that distributed dividends early are also exposed, and the risk increases for projects with high levels of debt financing.
Greece – storage steps in as PV tariffs lose their shine
The Ministry of Environment and Energy is aware that the number of small and medium-sized producers facing overdue bank debt is rising. Meanwhile, POSPIEF, the Pan-Hellenic Federation of Photovoltaic Producer Societies, is collecting data from members to assess the scale of payment delays and financial pressure across the sector. POSPIEF has also asked the Hellenic Bank Association for an urgent meeting to present its findings, discuss the growing risk of loan defaults and explore measures to prevent and manage the situation.
Proposed relief measure for September
A proposed financial relief measure involving a front-loaded tariff increase now appears likely to be implemented in September. The increase would apply to each project’s Reference Price, although the Ministry has yet to determine its scope to ensure support reaches producers most in need. The measure would be accompanied by a clawback in the final years of the support contract, making it financially neutral over the scheme’s lifetime and therefore avoiding the need for European Commission approval.
Revised Greece 2.0 plan tilts towards rooftop PV
Separately, the Ministry has held talks with SolarPower Europe and POSPIEF to revive efforts for extensions to support contracts. SolarPower Europe has indicated it will back the request in discussions with the European Commission. (Kostas Deligiannis/hcn)
First published on the energy portal energypress.gr
