Electricity from renewable energy sources is currently promoted by three support mechanisms in the Czech Republic:
- Feed-in tariff: FiT can be granted to operators of renewable energy power plants with an installed capacity up to 100 kW (30 kW for rooftop or façade PV installations; 10 MW hydropower plants). However, biogas and PV plants are only eligible for this FiT, if they went into operation before 31 December 2013. A similar condition applies for other renewable energy technologies, namely biomass, geothermal, wind and hydro plants up to 100 kW: they are only eligible if they went into operation before 31 December 2015 and if the building permit was issued before 2 October 2013.
- Premium tariff - green bonus: this bonus is given to operators of renewable energy plants on top of the regular market price of electricity, if they meet a certain number of conditions (i.e. date of operation and issue date of building permit). The green bonus will not exceed a sum of CZK 4,500 (approximately EUR 167) per MWh in the year the plant went into operation.
- Subsidies: In addition to the above-mentioned options, operators of small hydropower plants (up to 10 MW) can also receive subsidies under the Operational Programme “Entrepreneurship and Innovation for Competitiveness” 2014-2020 (OP PIK).
Heating and Cooling
In the heating and cooling sector, plant operators may receive subsidies under two of the programmes under the Operational Programmes (OP) funded by the European Regional Development Fund (ERDF): (a) Operational Programme Entrepreneurship and Innovation for Competitiveness 2014-2020 – OP PIK and (b) Operational Programme Environment 2014-2020 – OP ŽP.
Furthermore, plant operators are also exempt from real estate tax (i.e. tax regulation mechanism).
Renewable energies in transport receive support through two main forms: biofuels as well as the biofuel content of mixed fuels are exempt from consumption tax (i.e. tax regulation mechanism) and an obligatory minimum share of biofuels in petrol and diesel was also introduced through a biofuels quota.
For more detailed information regarding the available support mechanisms in the Czech Republic, please refer to RES Legal.
Last update: 09 2019