Czech tax on solar PV revenues

The Czech Republic has amended its solar photovoltaic (PV) support scheme so that solar PV plants qualifying for a fixed 20-year feed-ion tariff will now have to pay tax on the revenues generated.

The European Photovoltaic Industry Association (EPIA) says this could break the confidence among solar PV investors.

The Czech Senate has confirmed the adoption of an amendment to the renewable energy act which will have a retroactive effect. The amendment foresees that in the next three years, solar PV plants larger than 30 kWp set up in 2009 and 2010 will have to pay a tax of 26% on the revenues generated.

Commenting on the decision, EPIA Secretary General (ad interim) Eleni Despotou , says: “The photovoltaic sector unanimously condemns the measure; investors have based their confidence on the stability that the feed-in tariff scheme brings since it is guaranteed by the law.

“This decision will clearly break their trust in the renewable technology as a reliable investment and in the reliability of Czech republic as a safe place for investment”.

Despotou adds: “The Czech decision largely compromises its capacity to reach the mandatory target set by the RES Directive. Today we are calling on to the European Commission, currently evaluating the way Member States are implementing the RES Directive to ask the Czech government and any other EU government with similar intentions to reconsider their decision.”

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Photovoltaics (PV)  •  Policy, investment and markets