New Research Reveals How Smart Solar Farm Placement Can Cut Electricity Costs and Boost Revenue in Finland
​12.9.2025
A new study led by researchers from LUT University and Chalmers University of Technology (Sweden) has uncovered how strategic placement of solar farms can significantly reduce electricity costs and enhance investor returns in Finland’s deregulated electricity market.
Published in Solar Energy, the research analyzed the impact of adding 100 MWp of solar photovoltaic (PV) capacity at various locations across Finland. Using high-resolution weather data and electricity market simulations, the team discovered that location matters more than sheer energy output. Specifically, temporal coherence—how well solar generation aligns with market demand—plays a critical role in determining both societal and financial benefits.
Key Findings:
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Electricity cost reductions of up to €18 million per year were observed, benefiting all market participants.
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Revenue potential for solar investors varied by region, with southwestern coastal areas offering the highest returns.
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Price cannibalization, where overlapping renewable generation lowers market prices, was most severe in inland regions but surprisingly low in the sunniest areas.
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Solar PV complements wind power well, especially in spring and autumn, helping stabilize prices and improve grid efficiency.
The findings emphasize that solar farms should be placed not only where the sun shines most, but where their output best supports the electricity market. Additionally, the research highlights the value of rooftop solar and behind-the-meter installations in reducing distribution costs.
This research offers actionable insights for policymakers, investors, and grid operators aiming to optimize renewable energy deployment in Finland and beyond.
This research was supported by the “Hydrogen and Carbon Value Chains in Green Electrification (Hygcel)” project (Business Finland) and the JustH2Transit project (Strategic Research Council).
Read the full open-access article:
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