Czech Republic Update: Changes in the Act on Promoted Energy Sources

On July 14, 2021, the Czech Chamber of Deputies approved an amendment to the Act on Promoted Energy Sources, which increases the solar tax and simultaneously reduces the IRR for photovoltaic power plants to 6.3 %.

The power plants established in 2009 have not yet been subject to a levy, but they will now be subject to a levy on the purchase price of 10 % and 11 % levy in case of the green bonus. Power plants established in 2010 will be subject to the levies of 20 % and 21 % respectively. The IRR, i.e. the profitability of the power plant for the duration of the support, shall be set to 6.3 %. The amount of the accepted IRR for biogas will be 10.6 %, for biomass 9.5 % and for hydro, wind and geothermal energy 7 %.

By Konečná & Zacha law firm, Lithuania, a Transatlantic Law International Affiliated Firm.  

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