Photovoltaic plant subsidies in Czechia

Approximately 12.3 % of electricity in the Czech Republic is produced from renewable sources, while roughly 2.5 % comes from photovoltaic power plants (PV plants). The Czech grid operator, ČEPS, expects PV plant installations in Czechia to more than quadruple to approx. 10,000 MWp of the total installed base by 2030.

The upsurge in interest in building new PV plants among large businesses and private homeowners alike is due mainly to the unprecedented increase in the price of electricity in 2022 and the availability of investment subsidies of up to 50 %, even for large-scale installations.

Investment subsidies

The main pillar of green energy support is the investment support provided to investors from the Modernisation Fund (operated by the State Environmental Fund of the Czech Republic), for which approx. EUR 4.5bln has been earmarked for the period from 2021 to 2030. Out of this fund, PV plants (as well as wind, geothermal and small-scale hydro energy sources) can be supported by up to 50 % of the total eligible investment costs.

Tenders are regularly being opened for the commercial sector (over 1 MWp, with or without battery installation) as well, with a preference for building shell integrations and agrivoltaics. Greenfield installations are not excluded either.

Operational support

The current model offers two options: a green bonus and Dutch-style auction support.

The green bonus is provided for the energy consumed directly by the producer or provided to a third party without it entering the grid (e.g. within the same industrial park). All PV plants with installed capacity of less than 1 MWp are entitled to the green bonus. Nevertheless, the current electricity price level has resulted in the green bonus being close to zero.

PV plants with installed capacity greater than 1 MWp will not be eligible for support in an auction at least until 2023 (unlike wind, small water generators and biogas energy sources), but this may change in the future.

authors: Pavel Bederka