Czech Ministry of the Environment to allocate CZK 5 billion for solar power plant construction

The Ministry of the Environment (MŽP) and the State Environmental Fund (SFŽP) will allocate a further five billion crowns from the Modernisation Fund to build solar power plants at existing points of consumption. The funding is intended for businesses and applicants from the industrial, agricultural and public sectors. Both smaller municipalities with up to 3000 residents and larger ones will be able to apply for the subsidies. The MŽP announced this in a press release. Applications will open in March next year and can be submitted until October.

„Smart municipalities are looking for ways to reduce their energy dependence on supplies from the grid. We are helping them do that. We will once again offer small municipalities with up to 3000 residents subsidies to install photovoltaic systems on the roofs of non-commercial buildings. For larger municipalities and public entities, we will also fund the necessary infrastructure, thereby supporting the creation of energy communities,“ said Environment Minister Petr Hladík (KDU-ČSL).

Funding from the RES+ subsidy call is intended for the installation of new solar power plants with a capacity of 50 kilowatts to five megawatts, and in Prague from ten kilowatts. The energy produced must primarily be consumed at the site where it is generated.

The MŽP and SFŽP are also planning to launch another similar call this year for applicants seeking to build large solar power plants with a capacity of more than one megawatt, primarily to supply electricity to the grid. A further four billion crowns will be allocated for the second round of calls. In March, applications will also open for financial support to install individual photovoltaic systems on public buildings and for other joint projects, with two billion crowns available.

„Investments in solar power plants bring long-term economic and environmental benefits. Over the life of the Modernisation Fund, we have already made more than 17 billion crowns available for solar development through the RES+ programme alone. We are also continually directing further investment support to municipalities and public entities through the Operational Programme Environment and the National Recovery Plan, and to households through the New Green Savings programme,“ Hladík added.

The Modernisation Fund was established by the European Commission to help speed up the shift away from coal combustion and reduce greenhouse gas emissions. It is funded by EU revenues from the sale of emission allowances. Thanks to high allowance prices, Czechia is expected to have up to 500 billion crowns available in the Modernisation Fund by 2030. The funds are received by the SFŽP and will be gradually distributed through ten subsidy programmes supporting low-carbon technologies, the modernisation of energy systems and improvements in energy efficiency.

In October this year, the government approved a climate and energy plan under which the share of renewable energy in total consumption should rise from around 18 percent today to 30 percent by 2030. Growth is expected to be driven primarily by solar and wind power. Nuclear power is also expected to expand over the longer term