ACCOUNTING AND ANALYTICAL SUPPORT FOR SOLAR POWER GENERATION COST MANAGEMENT IN THE CONTEXT OF AN ESG STRATEGY FOR OFFICE CENTRES

Abstract

The article addresses the critical challenges of accounting and analytical support for managing the cost of solar energy generation within the framework of ESG strategies for office centers. Amid Ukraine's energy transformation and the strategic goal of achieving energy independence by 2050, the study focuses on the practical implementation of solar photovoltaic (PV) systems by commercial real estate entities. The research identifies a significant gap between traditional accounting standards and the operational realities of renewable energy, particularly regarding cost calculation for internal consumption and reimbursement by tenants.Based on empirical data from Western Ukrainian office centers (2023–2025), the authors demonstrate that the standard straight-line depreciation method leads to extreme seasonal distortions in unit costs, making it nearly impossible to set fair compensation rates for tenants. To resolve this, the study justifies the transition to the units-of-production (output) depreciation method for solar panels and battery storage systems. This approach synchronizes costs with actual energy output, stabilizing the cost per kWh within a predictable range.A key scientific contribution of the paper is the integration of the Levelized Cost of Energy (LCOE) metric into the corporate accounting policy as the planned cost of electricity. This indicator takes into account battery wear, photocell burnout, and the change in the value of money over time. By calculating an LCOE of 10.28 UAH, the authors provide a methodology for establishing a long-term planned cost that accounts for capital expenditures, WACC, and equipment degradation. Furthermore, the article proposes a comprehensive accounting model that serves as a framework for developing the components of accounting policy and as a source of data for ESG reporting. The findings offer a practical roadmap for office centers to justify energy investments, ensure regulatory compliance regarding energy "compensation" versus "sale," and enhance their corporate sustainability profiles for international stakeholders.