Solar Energy in the Czech Republic 2010
Source: Germany Trade & Invest, April 2010
The natural prevailing conditions for solar energy in the Czech Republic are similar to those of Germany. The sun shines 1,460 hours per year on average compared to 1,550 hours in Germany according to Verband der Unternehmer zur Nutzung energetischer Quellen. The solar irradiation conditions are especially good in South Moravia and South Bohemia. The proportion of the total output installed countrywide was the highest there, with 27.3 percent and 13.2 percent respectively.
The Czech solar market began in 2005 through the adoption of legislation similar to the German Renewable Energy Sources Act (no.180/2005 Sb.). This act provides for a choice between a fixed payment called a “green bonus“ funded by the regional network provider, and a feed-in tariff. The feed-in tariff is guaranteed for a period of 20 years while the green bonus is revised annually. Tax exemptions for the solar power plant are given for five years after connection. The energy regulatory authority determines the feed-in tariffs for the following year by November 30 at the latest. The photovoltaics support scheme is structured as below.
The Czech solar market began in 2005 through the adoption of legislation similar to the German Renewable Energy Sources Act (no.180/2005 Sb.). This act provides for a choice between a fixed payment called a “green bonus“ funded by the regional network provider, and a feed-in tariff. The feed-in tariff is guaranteed for a period of 20 years while the green bonus is revised annually. Tax exemptions for the solar power plant are given for five years after connection. The energy regulatory authority determines the feed-in tariffs for the following year by November 30 at the latest. The photovoltaics support scheme is structured as below.
The following tariffs are valid for 2010:
| Installed Total Output | Tariff in Kč/kWh |
| up to 30 kW |
12.25 Kč/kWh (0.4867 EUR) |
| above 30 kW | 12.15 Kč/kWh (0.4827 EUR) |
Alternatively, a green bonus in addition to the market price of electricity can be chosen:
| InstalledTotal Output |
Tariff in Kč/kWh |
| up to 30 kW |
11.28 Kč/kWh (0.4482 EUR) |
| above 30 kW |
11.18 Kč/kWh (0.4442 EUR) |
In addition to national subsidies, solar power plants in the Czech Republic are also subsidized by EU funds.
The Czech Republic is mainly a market for grid-connected PV systems with less emphasis on off-grid installations. In 2009 and 2010, free field plants have clearly dominated, representing 90 percent of the installed output. Project announcements suggest that about three dozen of such large solar parks may still be built in 2010. Politically, a stronger development of the rooftop PV sector is desired. This sector will guarantee solid business in the future, especially for German technology suppliers, system integrators, and project developers.
More than 7,000 photovoltaics plants with a total output of about 500 MW were installed in the Czech Republic by April 2010, and according to predictions, this could still double by the end of this year. The MW capacity installed the year before was only in the double digits. This dramatic increase in growth is due to the EU energy and climate guidelines that have led to the adoption of national support frameworks across Europe. The Czech Republic intends to increase the proportion of gross electricity coming from renewable sources up to 8 percent in 2010 and 13 percent by 2020. The CO2 emissions shall be reduced to 106 Mt by 2020 (2008: 121 Mt). According to estimates, solar power shall reach parity with conventional electricity in the Czech Republic between 2020 and 2025.
More than 7,000 photovoltaics plants with a total output of about 500 MW were installed in the Czech Republic by April 2010, and according to predictions, this could still double by the end of this year. The MW capacity installed the year before was only in the double digits. This dramatic increase in growth is due to the EU energy and climate guidelines that have led to the adoption of national support frameworks across Europe. The Czech Republic intends to increase the proportion of gross electricity coming from renewable sources up to 8 percent in 2010 and 13 percent by 2020. The CO2 emissions shall be reduced to 106 Mt by 2020 (2008: 121 Mt). According to estimates, solar power shall reach parity with conventional electricity in the Czech Republic between 2020 and 2025.
Development of the Czech PV market (installed output in MW; increase in %)
| |
2007 |
2008 |
2009 |
2010 |
| State of total output installed*) |
0.4 |
3.4 |
54.3 |
465.3 |
| Growth of the extension compared to last year |
133 % |
769 % |
1.487 % |
757 % |
| Number of PV plants |
28 |
249 |
1,214 |
6,013 |
*) status 01.01 of each year
Source: Energieregulierungsbehörde, calculations by Germany Trade & Invest
The growth of the Czech photovoltaics market could decrease beginning in 2011. An amendment to the law allows for the reduction of feed-in tariffs for plants newly connected to the grid starting January 1, 2011. The purpose of the amendment is to avoid grid instability as well as uncontrollable price increases for the consumer. Therefore right now it is difficult to predict further development of the Czech solar market. Nevertheless it may remain attractive despite strong reductions. A photovoltaics industry association is of the opinion that investors may be found even after a 20-30 percent reduction of the feed-in tariff. A slowing of the market is even welcomed since much of the grid is backlogged now as well as property areas which were speculatively reserved may have time to come back onto the market.
Currently, hundreds of international and national solar companies from the entire value chain are active in the Czech market. German providers of products and solutions in the field of the solar power production have good chances owing to the geographic proximity and the superior experience, whereas German module manufacturers are confronted with a strong competition by Chinese suppliers.
