Czechia's Solar Surge: Can New Policies Revive Market Growth?

Czechia’s Solar Surge: Can New Policies Revive Market Growth?

In the first half of 2025, Czechia installed 357 MW of solar capacity, as reported by the Czech solar association Solární Asociace. This new capacity includes 200 MW from the commercial and industrial (C&I) sector, 139 MW from residential installations, and 18 MW contributed by utility-scale solar projects. As a result, the cumulative solar capacity in Czechia now exceeds 4.8 GW.

This latest figure marks a decline compared to the same period in 2024, when 484 MW were added. The downturn is especially evident in the residential market, which saw a reduction of approximately 10,000 installations, with only 13,000 deployed in the first half of 2025, down from 23,874 in the previous year. The Solární Asociace has linked this decline to frequent changes in subsidy programs, a significant reduction in support, and a drop in electricity prices.

Jan Krčmář, the Executive Director of Solární Asociace, highlighted that while the C&I sector currently leads the market, it is still facing challenges due to delays in building permits and the administration of subsidies. Recent policy changes, including averting cuts to feed-in tariffs for solar projects from 2009 and 2010, have created uncertainty among investors.

To enhance the solar market, Krčmář has recommended streamlined permitting processes, the introduction of auctions for utility-scale projects, state guarantees for power purchase agreements, and a reinstatement of higher subsidies for the residential sector. He stressed the need for stability within a regulatory environment that is subject to constant changes.

Additionally, during the first half of this year, Czechia’s Chamber of Deputies passed a law aimed at simplifying the permitting process for solar and wind projects larger than 15 MW by classifying them as strategic energy projects. This was complemented by the Senate’s approval of designated acceleration areas, which will fast-track the development of solar and wind power plants.

One significant project currently under construction is the 50 MW Saxonie PV plant, located in the country’s northwest, which began development in April. Looking ahead, Solární Asociace expects the addition of 350 MW to 450 MW in the latter half of the year, which could help push the cumulative solar capacity in Czechia over the 5 GW mark before 2025 concludes. In contrast, Czechia installed a total of 967 MW of solar in 2024, indicating growth potential that remains strong despite current challenges.

This proactive approach and commitment to expanding solar energy infrastructure hold promise for a more sustainable energy future in Czechia, underscoring the significant role of renewable energy in addressing climate change and enhancing energy independence.

Popular Categories


Search the website