Czech state spent CZK 24 billion on 71,000 solar power plants last year, more than the year before

Last year, the state provided a total of 24 billion crowns from the Ministry of the Environment’s (MoE) subsidy funds for the construction of small and large solar power plants. The funding is expected to pay for the installation of more than 71,000 photovoltaic systems with a total installed capacity of 2.27 gigawatts (GW). Environment Minister Petr Hladík (KDU-ČSL) told reporters today. The installed capacity of the supported sources is equivalent to that of roughly three coal-fired power plants. The number of projects rose by about 30 percent year on year; the year before, the ministry provided 14 billion crowns for about 50,000 installations.

The Ministry of the Environment distributes funding for renewable energy installations through three main subsidy funds. Under the Modernisation Fund, the ministry approved 1,373 projects with a total capacity of more than 1.66 GW, with the funding mainly going to larger projects. The ministry subsidised smaller installations, particularly those at homes, through the New Green Savings programme. It approved 69,621 projects under the programme, with an installed capacity of 587 megawatts (MW). Most were photovoltaic systems with battery storage. The ministry also provided one billion crowns for 338 projects through the Operational Programme Environment, which funds installations on public buildings.

According to the minister, the supported installations will produce enough clean electricity to cover the typical annual consumption of about 650,000 households. The total installed capacity of the supported solar power plants, 2.27 GW, is equivalent to the capacity of roughly three coal-fired power plants. For example, the Prunéřov II power plant in northern Bohemia has three units with a capacity of 250 MW each. However, electricity generation from these sources differs.

Hladík also presented the Modernisation Fund’s open subsidy calls for this year. There are four calls in total, with more than nine billion crowns available from the fund, allocated according to the size of the project or applicant.

According to Aleš Spáčil, co-owner of Greenbuddies, a company specialising in photovoltaic construction, some industrial companies are building photovoltaic systems without investment subsidies because it makes financial sense for them and helps them meet their commitments. “However, active financial support for photovoltaic sources is part of the Czech Republic’s energy strategy, so it is no surprise that clients are waiting to start projects in order to secure construction subsidies—and make better use of their own funds,” Spáčil said. He also welcomed the announcement of the new calls.