Interest in Czech solar power surged as households sought old subsidy terms

Planned changes to state support for household solar installations, which is set to be reduced next year, have sharply increased orders for new solar power systems, with numbers rising several-fold in recent weeks. Households wanted to secure the old subsidy terms, and funding for solar installations at family homes has already been exhausted. This is according to information from companies, industry associations and the State Environmental Fund (SFŽP).

At the beginning of December, the Ministry of the Environment announced planned changes to the New Green Savings (NZÚ) subsidy programme. The ministry plans to limit subsidies for solar power plants. Under the new rules, they will be available for systems with a maximum capacity of five kilowatts, half the capacity eligible for support until now.

Industry representatives also expect the maximum subsidy to fall. They say the changes are too drastic for the sector and will threaten its further development in Czechia. The ministry’s announcement prompted a sharp reaction from households. According to the Czech Association for Energy Storage and Photovoltaics (CAFT), hundreds of millions of crowns in subsidy funding were used up in the nine days after the changes were announced.

„This can be interpreted in two ways – households are either afraid there will be no money left for their projects, because Minister Petr Hladík has indicated that there will not be enough funding for New Green Savings. Or households did not want to wait for the new terms and a lower subsidy. It is also possible that, like us, they do not understand why polystyrene or mineral wool should receive more subsidy than an energy source of their own,“ said CAFT chairman Aleš Hradecký.

Funding in the standard NZÚ programme has been exhausted for this year, the SFŽP confirmed. „Applications for solar installations are still being accepted under the ‘Renovate Grandma’s House’ scheme and all three calls for apartment buildings. Until the allocation is exhausted, applications can also be submitted for solar water heating under the NZÚ Light call for seniors and lower-income households,“ the fund said.

Raylyst, for example, recorded a 45 percent increase in orders and pre-orders in December compared with the previous month. „It is clear that the difference in subsidy support was decisive for households, and those who could do so and already had a home solar project ready did not hesitate for long,“ said Michal Petřek, innovation manager at Raylyst Solar.

Acetex also reported several times as many contracts signed for installations. „The reason for this sudden increase is clear: people wanted to secure the current, more favourable terms and thus receive a higher subsidy,“ said the company’s managing director, René Milota.

Somi has seen interest in solar power rise by up to 50 percent in recent weeks. „Our company also tried to enter all customers whose projects were already in progress into the system and secure a subsidy for them under the old terms,“ said Yveta Sammon, executive director of Somi Applications and Services.

Industry representatives want to continue discussions with the ministry about the new NZÚ terms. „We see one possible source of new funding for households in the transfer of seven billion crowns currently earmarked for large batteries, which, in his view, do not need subsidies because they offer excellent returns even without them,“ said Štěpán Chalupa, chairman of the Chamber of Renewable Energy Sources.