Renewable energy subsidies totaled €70 million in 2025
Renewable energy producers in Estonia received nearly €70 million in consumer-funded subsidies in 2025, even as the volume of subsidized renewable electricity declined, Elering said.
Producers received €69.6 million in renewable energy support last year, while the total output eligible for subsidies fell 13 percent on year to 1,296 gigawatt-hours (GWh), the transmission system operator (TSO) reported.
Support for high-efficiency cogeneration declined sharply, with payments to producers down 46 percent on year, totaling €1.5 million for 47 GWh of electricity.
In total, electricity producers receiver €71.1 million in renewable energy and high-efficiency cogeneration subsidies in 2025, a 14 percent drop compared with 2024.
Despite lower subsidy volumes, however, renewable electricity production continued to grow.
Power plants generated 3,619 GWh of electricity from renewable sources last year, accounting for 68 percent of Estonia's total electricity production. Renewable output was 7 percent higher than in 2024.
This growth was driven mainly by the addition of output from new solar and wind power plants built at the end of 2024 and in 2025.
Electricity generated from renewable sources covered 41 percent of Estonia's total consumption last year.
Wind power accounted for 37 percent of total renewable electricity production, increasing 14 percent on year despite below-average wind conditions. Total wind generation in 2025 reached 1,324 GWh.
The annual 600 GWh cap for subsidized wind energy was unmet last year. Subsidies paid for wind-generated electricity totaled €21 million, down 18 percent from 2024.
Solar power production, meanwhile, rose 12 percent to 1,128 GWh, accounting for 31 percent of the country's total renewable electricity output in 2025. However, Elering noted that growth has slowed compared with recent years.
By the end of the year, 596 megawatts (MW) of solar generation capacity had been registered under subsidy schemes. Production units from the fourth reverse auction also began operating during the year, increasing the total capacity of subsidized solar parks by 30 percent.
Solar energy subsidies declined 9 percent on year, with €26 million paid for electricity generated from solar power.
Electricity prices very low during sunny hours
The expansion of solar capacity has pushed electricity exchange prices very low, even into the negatives at times, during sunny hours, affecting subsidy payouts. Elering noted that producers do not receive subsidies during hours of negative pricing.
As a result of grid-connected solar power plants, the average exchange price during sunny hours was €46.35 per megawatt-hour (MWh) last year, 44 percent lower than the annual average exchange price.
Electricity generated from biomass, biogas and waste made up 31 percent of renewable electricity production in 2025. A total of 1,130 GWh were produced from these sources, receiving €24 million in subsidies.
Hydropower production totaled 37 GWh, up from 30 GWh the year before and receiving €300,000 in renewable energy subsidies.
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Editor: Aili Vahtla
