This year is probably the last opportunity for Czechs to invest in solar power under advantageous conditions. As of next year, the Industry and Trade Ministry intends to sharply cut the prices it pays for electricity generated by solar power.
“Newly built solar power stations have considerable advantages over other kinds of renewable resources,” ministry spokesman Matyáš Vitík said. He did not specify by how much the ministry wants to reduce the purchase prices of electricity from solar units. “It is clear that some type of support has to be maintained,” he said.
The plan has to be approved by the lower house. In line with the law on support for electricity production from renewable resources, the state can lower prices by a maximum of 5% a year. The Industry and Trade Ministry, in cooperation with the Energy Regulatory Office, now wants to achieve a quick change to the law so deputies can approve it before the October elections. According to E15 sources, the ministry wants to remove an article setting the maximum possible shift in prices.
At present, the purchase price for electricity from solar power is nearly CZK 14 per kilowatt hour; electricity generated by wind facilities earns only CZK 2.40. According to the Industry Ministry’s calculations, support for new photovoltaic power stations will cost customers, including households, more than CZK 3 billion next year. “In the years to come, if the law does not change, the amount consumers pay for solar energy would increase dramatically,” said Vitík.
Owners of solar power plants know the ministry plans to cut its support, but they did not expect the limits on price adjustments would be abandoned completely. They also expected the law would not take effect until next year.
“We totally disagree with the plan to cancel stable support to renewable resources. In the case of projects already being prepared, we regard the lifting of state support as an unacceptable intervention in the legal certainty of businesses,” said Martin Maňák, PR head for energy at the J&T investment group. The end of support would mean halting projects now being prepared, he said.
Output at solar power stations in the Czech Republic increased from 3.4 megawatts to 54.29 megawatts last year and reached nearly 80 megawatts in June this year. Projects under way could raise the total output to 200 megawatts by December. Development was spurred by high buyout prices, which had been guaranteed for 15 years. Thanks to new technologies, the return on investment is a mere five years in some cases. “Technology development has cut the prices of photovoltaic panels by more than 40%. Newly built solar power stations are therefore being favoured over other kinds of renewable resources,” Vitík said.
