Utility-scale and residential solar saw major declines in H1 2025 in Czechia due to permitting, funding challenges
Residential solar panel installations fell by around 10,000; battery storage dropped 37% YoY
Policy reform exists, but implementation barriers persist, delaying large projects, according to Solární Asociace
Permitting delays and insufficient financing are hindering solar deployment in the Czech Republic, according to local industry group Solární Asociace. In the first half of 2025, distribution companies reported a 26% year-on-year (YoY) drop in newly installed solar PV capacity, totaling just 356.8 MW.
The largest addition of 52 MW was seen in Ústí nad Labem, followed by 47.7 MW in the Central Bohemian region, and 30 MW in the South Moravian region.
The new ground mounted and commercial power plants segment saw a major decline, with only 846 systems installed during the reporting period, down from 2,160 in the previous year, due to the above-mentioned reasons.
According to the association, nearly 10,000 fewer solar panels were installed in the residential segment, which it attributes to frequent changes to the subsidy programs, reduced support, and falling electricity prices.
A slowdown in the residential segment also impacted battery storage space, where installations declined by 37% to 174 MWh, compared to 275.9 MWh in H1 2024. However, the association points to the growing market for standalone storage projects, thanks to the amendment to the country’s Energy Act, or Lex OZE III, earlier this year.
Although companies invested in project preparation much earlier, subsidy issues and digital permit system failures at the Ministry of Industry and Trade’s (MPO) end slowed project starts. Due to these reasons, larger commercial and industrial (C&I) solar projects faced delays in H1 2025. Work on several 2024-prepared projects is beginning only now.
“Sometimes it seems as if employees of some offices are looking for a way to stop projects at all costs, instead of finding ways to enable them. Such an approach threatens the future of the Czech energy sector,” said Executive Director of Solární Asociace, Jan Krčmář.
The association admits that while legal changes are being introduced to speed up renewable energy growth in the Czech Republic, real-world barriers remain. These include bans on renewable energy sources in zone planning, conservation restrictions, and slow permit processes, among others.
The association supports power purchase agreements (PPA) and seeks clearer auction plans for the industry moving forward.
Agrivoltaics is an area where the industry sees a lot of potential. The government had introduced a decree to this effect earlier this year, but the association says the decree is yet to come into effect (see Czechia Enshrines Agrivoltaics With A New Decree).
In April this year, MPO expanded its subsidy program for solar and storage by CZK 1 billion (see Czechia Expands C&I Solar & Storage Subsidy By CZK 1 Billion).