Czech Industry Ministry warns renewable energy buyers about dishonest firms, plans expanded advice list

The Ministry of Industry and Trade (MPO) is preparing an update to its recommendations for people interested in renewable energy sources. The list of recommendations is intended to advise people on selecting an installation company, agreeing terms or procedures to follow if companies fail to meet their agreements. It responds to continued strong interest in acquiring such equipment and to problems or unfair practices by some installation companies. Industry and Trade Minister Jozef Síkela (STAN) told reporters today. He also wants to step up inspections of installation companies.

Record interest, particularly in photovoltaic power plants, has also brought an increase in problems involving some installation companies. The biggest case concerns Energetický holding Malina. The company has admitted difficulties in delivering a large number of contracts. Last week, the company's management therefore filed an insolvency petition for the firm in order to obtain permission for reorganisation and subsequently complete the contracts. The court opened proceedings on Tuesday. According to media reports, several other companies are also facing problems.

„Where there is interest, entities sometimes emerge that want to profit from it through unfair practices,“ Síkela said.

He recalled that record interest in purchasing photovoltaic systems and heat pumps has continued this year. Distribution companies recorded a multiple increase in the number of new power plants connected to the grid during the first quarter.

The ministry had previously issued a list of advice on acquiring renewable energy sources together with the Chamber of Renewable Energy Sources (OZE). According to Síkela, the ministry has now updated the list in cooperation with the Czech Trade Inspection Authority (ČOI) due to the growing difficulties faced by some installation companies.

„We are focusing on how to properly select an installation company or what the usual terms for deposits, for example, should roughly look like. The recommendations will also address procedures for cases in which the company fails to meet its obligations,“ the minister said.

Among the specific recommendations on the list, Síkela mentioned checking the history and references of the selected installation company, balancing penalty terms for both parties, setting deposits at no more than 40 percent of total costs, and taking timely specific steps if agreed work is not carried out. The minister pointed out that only a court, rather than the ČOI or the Energy Regulatory Office, can address the terms of contracts.

Interest in photovoltaic power plants rose sharply in Czechia last year. In 2022, 33,760 were commissioned with a total capacity of 288.8 megawatts (MW), representing a year-on-year increase of 366 percent. Strong demand has continued this year.

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