Country: Czech Republic

Please find below latest updates as regards national policy and legal-administrative changes. For more information on these measures please contact the national association, contact details are available here

January 2014 - End of FiT as of end of 2013

The RES FiT program was terminated at the end of 2013, including for small and residential systems under 30KWp which were the only remaining supported PV installations in the Czech Republic. 

December 2010 and 2012: Retroactive measures

Many retroactive legislative measures have been introduced since 2011: abolition of tax holidays, changes in depreciation, abolition of contribution on decentralized production, obligation to equip PV installations with facilities for remote power control, recycling fees. The largest impact has a so called solar tax which decreased retroactively the FiT by 26% and green bonuses by 28%. The tax hasn´t been implemented in the frame of the tax legislation but within the Amendment to the Act on RES 180/2005 Coll.  The tax has been implemented for a three-year period (2011-2013).  The tax on PV investments together with the gift tax on carbon credits and an increased fee for usage of an agricultural land for construction of the PV power plant have been adopted in order to decrease impact of the RES support on the price of electricity.

More specifically:

• PV systems installed between 2009 and 2010 supported by FiT have been assigned a tax of 26%

• PV systems installed between 2009 and 2010 supported by green bonuses have been assigned a tax of 28%

Since 2012 PV systems with an installed output up to 30 kWp inclusive have been excluded from the tax payment. Until then only rooftop systems under 30kWp had been excluded.

In 2012 a recycling fee has been approved. Recycling fee has to be payed by PV power plants operators (for the panels installed by 31.12.2012) and by PV panels´ manufacturers (for the panels installed since 1.1.2013). Recycling fee has to be payed obligatory to collective systems - private companies organizing waste collection and recycling on the market. The total Recycling fee should be charged at minimum rate of 8,5CZK/kg (0,34EUR/kg). The amount should be payed within five years 2014-2018 (it means during first ten years of the PV installations´ lifetime).

Further retroactive steps are under preparation. The Governement has just approved prolongation of the solar tax for PV power plants connected in 2010. The solar tax of 10% should be implemented for the whole lifetime of the PV installations. The same draft includes abolition of any financial support for the new RES (FIT and green bonuses) starting 2014. In the next days the draft should be submitted to the House of Commons.

The Ministry of Industry recently announced a plan to prolongn of the solar tax to cover the whole lifetime of PV systems; the tax could be even higher than the current one. The official proposal hasn´t been presented yet.

Impact on the Sector:  The result of all these steps is that the payback period for PV installations has been pushed 15 years beyond what was guaranteed by the law (the lifetime is 20 years) in many cases. Photovoltaic power plants are operating at a loss. Many of them have negative cash flow, the operational costs are higher than revenues after the solar tax. The Czech PV Industry Association keeps track of several forced sales when entrepreneurs were unable to repay bank loans.

Date of adoption: Amendement 402/2010 Coll. Approved by the Czech Parliament 14.12.2010

Amendement to The Act 185/2001 Coll. Approved by the Czech Parliament 31.1.2012

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