Czech Republic approves measures to prevent surge in solar energy prices

(ADPnews) - Nov 10, 2010 - The Czech Republic cut solar feed-in tariffs for 2011 and accepted the launch of taxes on solar energy and carbon credits on Tuesday, aiming to avoid a boom in solar plants and a steep rise in solar energy prices.

Energy regulatory office (ERU) cut by half feed-in-tariffs for plants with capacity above 100 kW to be opened in 2011 to CZK 5,500 (USD 308,700/EUR 223,700) per MWh from CZK 12,150 per MWh for plants connected to the grid this year. Plants with capacity between 30 kW and 100kW will get CZK 5,900 per MWh.

The same day, the Czech Chamber of Deputies passed an amendment of a bill imposing a 26% three-year tax on revenue from solar power plants put in operation in 2009 and 2010. The tax excludes solar plants with a capacity below 30 kW mounted on roofs and walls. The amendment also introduces a 32% tax on free carbon credits and higher tax for solar power plants on farmland.

"If the government did not do anything, the prices for businesses would increase by up to 18 percent," prime minister Petr Necas said after the approval.

(CZK 10 = USD 0.561/EUR 0.407)

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