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Czech Republic PV

Czech Republic PV

 

 

The Act of 31 March 2005 on the promotion of electricity production from renewable energy sources (targeting 8% by 2010) was the most important policy for PV in the year 2006.

It has highly increased the use of Photovoltaic systems in the Czech Republic.

There is an income tax credit for purchase price reveues for the first six years.

Description of the policy or programme

 

Target of the new Act

To create the conditions for the fulfilment of the indicative target for the share of electricity from renewable sources in the gross consumption of electricity in the Czech Republic amounting to 8% in 2010, and further increase in the years after 2010.

 

Terms of the new Act

Operator of the transmission system or the operators of the grid systems are obliged to preferentially connect RES to the transmission system or to the grid systems. Solar energy is explicitly mentioned as “renewable source” in the Act, although no distinction of photovoltaics is made.

 

The Act stipulates the possibility to choose between feed-in tariffs and green boni for the promotion of electricity from renewable energy sources. Since 01/01/2006 producers can choose the option they prefer once a year.

 

Other support schemes

 

- Subsidies and low-interest loans from State Environmental Fund

(grant based, not mandatory, paid ex-post)

 

 - Limited support by local governments

 

Description of the support scheme

 

The “Energy Regulatory Office” determines the feed-in tariffs and the green boni each year in advance. The prices may not be lower than 95% of the value of the year before. The level of revenues per unit of electricity produced from renewable sources is maintained with promotion by purchase prices for a 15-year period, as a minimum.

 

The feed-in tariffs legitimate the RE producer to sell his/her energy for a fixed price the operator of the distribution system. The green bonus system allows the producer to sell the energy on the market for the wholesale price. In addition, he receives a premium from the distribution system operator. The risk is higher, but the revenue may also be higher. The right to a payment of green bonus also applies to producers who consume their produced energy themselves.

 

The current figures for feed-in and green bonus are the following:

 

 

2006

2007

Feed-in tariff (CZK/MWh)

13 200

13 460

Green bonus (CZK/MWh)

12 590

12 750