The Greek solar energy sector is facing growing financial pressure as prolonged periods of zero and negative electricity prices, combined with increasing production curtailments, continue to significantly reduce revenues for solar power producers across the country.
Market participants report that solar facilities operating under feed-in premium support schemes experienced a sharp decline in earnings during April. For a typical solar plant, revenues were more than 50 percent lower than in the same month of 2025. Industry sources indicate that some large-scale operators recorded income declines of up to 60 percent compared to the revenues they would have generated without curtailments and negative pricing conditions.
The impact has been particularly severe for utility-scale solar projects connected to the transmission network. These facilities are more frequently subject to output restrictions imposed by network operators attempting to maintain grid stability during periods of excessive renewable energy generation. While some investors initially viewed April’s weak performance as a temporary situation influenced by lower electricity demand during the Easter holiday period, market developments in May suggest that the problem is becoming increasingly structural.
According to industry executives, nearly every day in May included several hours during which wholesale electricity prices fell to zero or below zero, further undermining project profitability. The continued deterioration in revenues is raising concerns about the long-term financial sustainability of solar investments and their ability to meet financing and debt repayment obligations.
Senior industry leaders have warned that the consequences could extend beyond the renewable energy sector. Metlen Chief Executive Officer Evangelos Mytilineos cautioned that sustained pressure on revenues may lead to an increase in problematic loans associated with solar projects whose earnings are no longer sufficient to support investment costs.
Similar concerns were expressed by Aktor Group CEO Alexandros Exarchou, who highlighted the rapid expansion of solar generation capacity without adequate investment in battery energy storage systems. He warned that the growing imbalance between renewable generation and storage capacity could create broader challenges for the electricity market and potentially expose the banking sector to significant financial risks in the years ahead.
