Czech Republic to introduce 26% windfall tax on solar power producers from 2011
(ADPnews) - Dec 13, 2010 – The Czech Senate last week passed a law levying a 26% windfall tax on solar power producers for the next three years in a bid to tame a rise in electricity prices in 2011.
Furthermore, as 32% tax will be added on carbon credits awarded to solar companies over the next two years.
The law, which requires the president’s signature before taking effect in 2011, will be retroactively applied to all ground-mounted photovoltaics (PV) built in 2009 and 2010 in the Czech Republic. The tax on revenue will not apply to rooftop solar systems with a capacity lower than 30 kW.
The move is aimed at reducing the the impact the solar power feed-in tariff will have on electricity prices next year.
Under the current subsidy scheme, solar power producers receive CZK 12,400 (EUR 492.3) per MWh on top of the market price for electricity sold to the grid. The government has estimated that without intervention support to power from renewable sources will hike electricity prices for households by more than 10% next year.
The generous tariff spurred unprecedented growth. According to projections of the Czech Energy Regulatory Office (ERU), the country will have 1,600 MW of solar power capacity installed at the end of 2010, compared to a mere 67 MW at the start of 2009.