Czech renewable energy subsidies fell last year, with solar down by as much as a third

Subsidies for installing renewable energy sources under programs run by the State Environmental Fund (SFŽP) fell last year, with the state providing more than 9.2 billion korunas for solar power plants. That was a year-on-year decrease of around a third. Total subsidies paid for heat pumps were about two percent lower year on year, at 1.5 billion korunas. This is according to the latest SFŽP data.

The number of applications submitted also illustrates how public interest in subsidies has evolved. While the fund recorded a year-on-year drop of four percent in heat pump subsidy applications last year, to 16,938, the 55,524 applications for solar subsidies represented a 24 percent decline compared with the previous year.

„In 2024, public interest in solar power plants and the subsequent nominal amount of subsidies paid out were still around five times higher than for heat pumps. Even so, it is quite clear that photovoltaics have begun to move from a period of growth in volume to one focused on improving quality and efficiency,“ said Pavel Matějovič, executive director of installation company Schlieger.

He said subsidies for solar installations are unlikely to grow in the coming years, with investment focusing instead on development and modernisation.

“To a large extent, this is an indicator for us of the general public’s interest in this type of subsidy. The fact that there was no real clarity around solar subsidies in the middle of last year, and that the situation was confusing for applicants, certainly played a role. This year, we expect interest to stabilise thanks to clear rules that will apply throughout the year,” Matějovič noted.

According to the data, the average value of a successful application was CZK 179,591 for solar power plants and CZK 103,508 for heat pumps.

The number of installations of both solar power plants and heat pumps slowed last year. A total of 44,593 new photovoltaic systems were commissioned in the country, 38,106 fewer than a year earlier, although installed capacity of 967 megawatts (MW) was the same as in the record year of 2023. Demand for heat pumps fell even more sharply. Czech manufacturers sold 20,029 units last year, a year-on-year decline of around 60 percent.