Czech Republic Solar Report

Gain comprehensive insights into the statistics and metrics surrounding the solar production industry in Czech Republic

  1. Climate to travel (n.d). climate in Czech Republic. Retrieved December 9, 2024, from https://www.climatestotravel.com/climate/czech-republic#google_vignette
  2. Energy profile IRENA(31st july 2024).  Czechia. Retrieved December 9, 2024, from https://www.irena.org/-/media/Files/IRENA/Agency/Statistics/Statistical_Profiles/Europe/Czechia_Europe_RE_SP.pdf\
  3. Countryeconomy.com (june of 2024). Czech Republic- Household Electricity Prices. Retrieved December 9, 2024, from https://countryeconomy.com/energy-and-environment/electricity-price-household/czech-republic
  4. Resource Adequacy Assessment of the Electrical Grid of the Czech Republic until 2040 (MAF CZ) (march 2022). Assessment-of-resource-adequacy-of-the-Czech-electricity-system.  Retrieved December 9, 2024, from https://www.mpo.gov.cz/assets/en/energy/electricity/2022/5/Assessment-of-resource-adequacy-of-the-Czech-electricity-system-_2021_-.pdf
  5. PV Magazine (January 15th 2024). Czechia records 970 MW of new solar in 2023. Retrieved December 9, 2024, from https://www.pv-magazine.com/2024/01/15/czechias-records-970-mw-of-new-solar-in-2023/
  6. REZOLV.ENERGY (26th march, 2024). The Czech Republic’s 2030 renewables target will only be achievable with rapid, widespread and coordinated policy change. Retrieved December 9, 2024, from https://rezolv.energy/the-czech-republics-2030-renewables-target-will-only-be-achievable-with-rapid-widespread-and-coordinated-policy-change/
  7. Coal energy in Czech Republic (october 4, 2019). The climate targets  in europe are becoming more and more ambitious. Retrieved December 9, 2024, from  https://www.cez.cz/edee/content/file-s/pro-investory/informacni-povinnost-emitenta/2019-10/cez-031-2019_en_coal_energy_in_czechia.pdf
  8. IEA 50 (December 2020). Projected Costs of Generating Electricity 2020. Retrieved December 9, 2024, from https://www.iea.org/reports/projected-costs-of-generating-electricity-2020
  9. International Trade Administration (2023-09-08). Czech Republic – Country Commercial Guide. Retrieved December 9, 2024, from https://www.trade.gov/country-commercial-guides/czech-republic-energy
  10. PV TECH (January 16, 2024). Czech Republic adds 970MWp solar PV plants to grid in 2023. Retrieved December 9, 2024, from  https://www.pv-tech.org/czech-republic-adds-970mwp-solar-pv-plants-to-grid-in-2023/
  11. Global Energy Monitor WIKI (n.d). Solar farms in Czech Republic. Retrieved December 9, 2024, from https://www.gem.wiki/Category:Solar_farms_in_Czech_Republic
  12. Smart Energy Forum(March 3rd 2023). Update on Czech PV and ESS market. Retrieved December 9, 2024, from https://www.smartenergyforum.cz/en/czech-pv-report/
  13. Mordor Intelligence(n.d). Czech Republic Solar Energy Industry Size & Share Analysis – Growth Trends & Forecasts (2024 – 2029). Retrieved December 9, 2024, from https://www.mordorintelligence.com/industry-reports/czech-republic-solar-energy-market
  14. Salary Expert (December 9, 2024). Solar Equipment Installer. Retrieved December 9, 2024, from https://www.salaryexpert.com/salary/job/solar-equipment-installer/czech-republic
  15. Salary Expert (December 9, 2024). Electrical Engineer. Retrieved December 9, 2024, from https://www.salaryexpert.com/salary/job/electrical-engineer/czech-republic
  16. Czech Statistical Office (31-10-2024) Employees and Wages. Retrieved December 9, 2024, from https://csu.gov.cz/employees-and-wages?pocet=10&start=0&1_pocet=10&1_start=0&skupiny=11&vlastnostiVystupu=15&pouzeVydane=true&razeni=-datumVydani&1_skupiny=11&1_vlastnostiVystupu=12&1_razeni=-datumVydani
  17. Worldometer (n.d). Czech Republic(Czechia) Population. Retrieved December 9, 2024, from https://www.worldometers.info/world-population/czech-republic-population/#google_vignette
  18. Czech Statistical Office (31-10-2024). Labour Cost. Retrieved December 9, 2024, from  https://csu.gov.cz/labour-costs?pocet=10&start=0&skupiny=25&razeni=-datumVydani
  19. Statista (March 2020). Average labor cost for the manufacturing industry in Czechia in selected years from 2000 to 2019. Retrieved December 9, 2024, from https://www.statista.com/statistics/951335/labor-cost-for-manufacturing-in-czechia/
  20. Wings (August 18 2023). A guide On Cost Of Living In Czech Republic. Retrieved December 9, 2024, from https://leverageedu.com/learn/cost-of-living-in-czech-republic/
  21. Statista (November 2024). Average monthly electricity wholesale price in Czechia from January 2019 to September 2024. Retrieved December 9, 2024, from https://www.statista.com/statistics/1314520/czechia-monthly-wholesale-electricity-price/
  22. Statista (July 2024). Monthly cost of prime industrial rents in Czechia in 2nd quarter 2024, by region. Retrieved December 9, 2024, from  https://www.statista.com/statistics/913258/prime-industrial-rents-in-czechia-by-city/
  23. Property Forum (28 April 2021). Czech and Polish cities rank among cheapest warehousing locations globally Retrieved December 9, 2024, from https://www.property-forum.eu/news/czech-and-polish-cities-rank-among-cheapest-warehousing-locations-globally/8594
  24. GlobalData. Report store (August 18 2024). Czech Republic Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035. Retrieved December 9, 2024, from https://www.globaldata.com/store/report/czech-republic-power-market-analysis/
  25. Energy Regulatory office of the czech Republic (n.d).Yearly Report On The Operation Of  The Czech Electricity Grid 2023. Retrieved December 9, 2024, from https://eru.gov.cz/sites/default/files/obsah/prilohy/eruelectricity2023.pdf
  26. IEA 50 (10 August, 2022). Czech Republic Electricity Security Policy. Retrieved December 9, 2024, from https://www.iea.org/articles/czech-republic-electricity-security-policy
  27. IEA 50 (September 2021). Czech Republic 2021. Retrieved December 9, 2024, from https://www.iea.org/reports/czech-republic-2021
  28. CMS law.tax.future (28 October 2024). CMS CEE Expert Guide to Solar Panel Installation in Czech Republic. Retrieved December 9, 2024, from https://cms.law/en/int/expert-guides/cms-cee-expert-guide-to-solar-panel-installation/czech-republic
  29. PV magazine (March 15, 2022). Czechia allocates $177m for solar rebates. Retrieved December 9, 2024, from https://www.pv-magazine.com/2022/03/15/czechia-allocates-177m-for-solar-rebates/
  30. Grant Thornton GT News (November 30, 2021). Subsidies for photovoltaic systems with/without storage financed from the National Recovery Plan. Retrieved December 9, 2024, from https://www.grantthornton.cz/en/news/subsidies-for-photovoltaic-systems-with-without-storage-financed-from-the-national-recovery-plan/
  31. CMS law.tax.future (22 February 2024). Renewable energy in Czech Republic. Retrieved December 9, 2024, from https://cms.law/en/int/expert-guides/cms-expert-guide-to-renewable-energy/czech-republic
  32. Power Technology (September 9, 2024). Top five solar PV plants in operation in the Czech Republic. Retrieved December 9, 2024, from https://www.power-technology.com/data-insights/top-five-solar-pv-plants-in-operation-in-the-czech-republic/
  33. Power Technology (October 21, 2024). Power plant profile: Tusimice Solar PV Project, Czech Republic. Retrieved December 9, 2024, from https://www.power-technology.com/marketdata/power-plant-profile-tusimice-solar-pv-project-czech-republic/
  34. Solar Home Ideas (July 1, 2024). Top 5 Solar Panel Installer Companies in the Czech Republic. Retrieved December 9, 2024, from https://solarhomeideas.com/top-5-solar-panel-installer-companies-in-the-czech-republic/?citationMarker=43dcd9a7-70db-4a1f-b0ae-981daa162054
  35. PR Newswire (February 11, 2022). Technavio’s Solar Energy Market in Czech Republic Research Report Highlights the Key Findings in the Area of Vendor Landscape, Key Market Segments, Regions, and Latest Trends and Drivers. Retrieved December 9, 2024, from https://www.prnewswire.com/news-releases/technavios-solar-energy-market-in-czech-republic-research-report-highlights-the-key-findings-in-the-area-of-vendor-landscape-key-market-segments-regions-and-latest-trends-and-drivers-301478749.html?citationMarker=43

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

The Czech Republic receives an average of about 1,670 hours of sunshine per year.1

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kWh per kWp installed

In the Czech Republic, the average annual energy yield for solar photovoltaic (PV) systems is approximately 1,000 to 1,200 kWh per kWp installed.2

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Average cost per kWh from utility company

As of June 2024, the average cost of electricity for households in the Czech Republic is approximately $0.36 USD per kilowatt-hour (kWh).3

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Reliability of electrical power supply grid

The electrical power supply in the Czech Republic is generally reliable. The country maintains a high standard of reliability, with the Loss of Load Expectation (LOLE) indicator set at a maximum of 15 hours per year. This means that, on average, the total duration of power outages should not exceed 15 hours annually.4

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Detailed Information

  • All figures have been converted into USD
  • Total solar panel production capacity (installed)

    As of 2023, the Czech Republic added around 970 MW of new photovoltaic (PV) plants, bringing the total installed capacity to approximately 3,550 MW 5

    Total solar panel production capacity (projected)

    By 2030, the Czech Republic aims to achieve a total installed solar photovoltaic (PV) capacity of approximately 10 gigawatts (GW) 6

    Average costs of various electricity generation sources (coal, natural gas, solar, etc)

    Although specific average costs for different electricity generation sources in the Czech Republic are not available, here are the costs for various electricity generation sources across Europe:

    Coal:7 For coal-fired power plants, variable costs are typically between $8.44 USD to $15.82 USD per megawatt-hour (MWh), depending on the type, age, and capacity of the plant.

    Nuclear:8 Nuclear power is also relatively cost-effective, with costs around $71 USD per MWh.

    Natural Gas: The cost of electricity from natural gas plants is approximately $71 USD per MWh.

    Renewables:

    Solar: The cost of solar photovoltaic (PV) electricity is approximately $70 USD per MWh.

    Wind: Onshore wind power costs are typically around $55 USD per MWh while offshore is 90 USD per MWh.

    Hydropower: Small-scale hydropower costs can range from $31.64 to $73.83 USD per MWh.

    Percentages of various electricity generation sources (coal, natural gas, solar, etc)

    As of 2023, the electricity generation mix in the Czech Republic is as follows:9

    fossil fuels 53.60% : (47.50% lignite, 5.86 % natural gas),

    nuclear power 40.95%

    Renewables: 5.46%

    Biomass: 3.34%

    Solar: 1.47%

    Hydropower: 0.63%

    Average daily availability of electricity from the national grid (measured in hours)

    The Czech Republic enjoys a highly reliable electricity supply, with the average daily availability from the national grid being close to 24 hours.

    Number of residential solar panel installations

    Approximately there are 150,000 residential rooftop solar power plants installed in Czech Republic.10

    Total number of solar farms (installed and projected)

    Approximately there are about 427 solar farms installed and projected in Czech republic.11

    Off-grid market demand for solar panels (current and projected)

    Current Demand:12 In 2022, there was a significant increase in the installation of photovoltaic (PV) systems, with 237 MWp installed compared to 40 MWp in 2021. This trend is expected to continue, with many new PV plants including energy storage systems (ESS).

    Projected Demand:13 The future demand for solar home systems in the Czech Republic is expected to grow significantly The market is projected to expand at a compound annual growth rate (CAGR) of around 2.5% from 2024 to 2029.

    On-grid market demand for solar panels (current and projected)

    1210

    Current Demand:

    In 2023, the Czech Republic added approximately 970 MWp of new solar photovoltaic (PV) capacity. This growth was primarily driven by household rooftop solar installations.

    Residential Sector: There were around 90,000 new PV plants requested for grid connection in 2022, with the majority completed in 2023.

    Projected Demand:

    Short-term Forecast (2023-2027): The Czech Republic is expected to add between 4,000 to 5,000 MWp of new PV plants by the end of 2025.

    Long-term Forecast (2023-2030): The country aims to achieve a total installed PV capacity of approximately 13 to 15 GW by 2030.

    Average monthly income of workers in solar industry (labor cost)

    Solar equipment installer:14 16, 229.17 USD per year

    Electrical Engineers:15 43,178.39 USD per year

    The average gross monthly wage across all sectors in the Czech Republic was 1,908.67 USD in the third quarter of 2024 16

    Population of the country

    As of December 2024, the population of the Czech Republic is estimated to be around 10,735,859 people.17

    Average overhead costs of solar panel production (with a brief breakdown)

    The overhead costs for solar panel production in Czech Republic typically range from 20% to 25% of the total production cost.

    Labor costs for operating machinery, assembling panels, and quality checks are significant. The average labor costs in the Czech Republic can be broken down as follows:

    Monthly Labor Costs:18 In 2022, the average monthly labor cost per employee was approximately 2,335.49 USD.

    Hourly Labor Costs:19 In 2019, the average hourly labor cost for manufacturing industry employee was around 14.24 USD.

    Utilities:20 average monthly Utilities in czech republic costs approximately 278.98 USD for (Electricity, Heating, Cooling, Water, Garbage).

    Wholesale Electricity Prices:21 As of September 2024, the average wholesale electricity price in the Czech Republic was around 86.50 USD per MWh.

    Rent: The average cost of renting a warehouse in the Czech Republic varies by region:

    • Prague:22 In the Greater Prague region, the monthly rent for prime warehouse space was around 8.18 USD per square meter in the second quarter of 2024. This region has seen significant increases due to high demand and low vacancy rates.
    • Other Regions: In regions like Moravia-Silesia, warehouse rents are more affordable, averaging around 6.07 USD per square meter.
    • General Range:23 Across the country, warehouse rents typically range from $4.85 to $5.59 USD per square meter per month.

    Facility Maintenance costs: The average facility maintenance costs for manufacturing facilities in the Czech Republic can vary based on several factors, including the size of the facility, the type of manufacturing, and the specific maintenance requirements. Manufacturing plants typically allocate between 5% to 15% of their annual budget to maintenance activities. This includes both preventive and corrective maintenance tasks.

    Administrative Expenses costs associated with the management of the production process, including salaries of administrative staff, office supplies, and other general expenses, typically add up to a substantial part of the overhead.

    Quality control expenses incurred to ensure the solar panels meet performance and safety standards, including testing and inspections.

    A summary of the energy infrastructure

    Total Installed Capacity: 24

    • As of 2023, the total installed electricity generation capacity in the Czech Republic was 21.9 gigawatts (GW). This capacity includes a mix of fossil fuels, nuclear, and renewable energy sources, reflecting the country’s diverse energy infrastructure.

    Electricity Generation: 9

    • In 2022, the Czech Republic produced 78.8 terawatt-hours (TWh) of electricity, with domestic consumption at approximately 60.4 TWh. The energy mix consisted of 53.60% fossil fuels (47.50% lignite, 5.86% natural gas), 40.95% nuclear power, and 5.46% renewables (3.34% biomass, 1.47% solar, 0.63% hydro). In May 2023, the country launched its first green hydrogen electrolyzer powered by solar energy, capable of producing about 100 kilograms per day or 8,000 kilograms annually..The Czech Republic continues to rely heavily on traditional energy sources, but there is a growing emphasis on integrating more renewable energy into the grid.

    Electricity Consumption: 25

    • In 2023, gross electricity consumption in the Czech Republic fell to 67.9 TWh, a 4.3% decrease from the previous year. The largest reductions were seen among high-demand customers using high-voltage (HV) networks (0.9 TWh, 4.1%), households (0.3 TWh, 2.1%), low-demand business customers (0.2 TWh, 2.9%), and high-demand customers using extra-high-voltage (EHV) networks (0.1 TWh, 1.4%).
    • The year also saw a negative net balance of electricity imports and exports, totaling 9.2 TWh, a 32.1% decrease from the previous year. Exports dropped by 7.6 TWh (25.1%) and imports by 3.3 TWh (19.5%).

    Grid Infrastructure: 26

    • Transmission System: The nationwide transmission system consists of very-high-voltage lines and 17 cross-border connections to neighboring countries1. This system ensures the reliable transmission of electricity across the country and facilitates international electricity trade.
    • Distribution System: The distribution network includes very-high, high-, and low-voltage lines and cables. It is primarily operated by three main distribution system operators (DSOs).

    Clean Energy Transition: 27

    The Czech government is implementing policies to phase out coal and develop low-carbon energy sources. This includes investments in renewable energy, energy efficiency, and modernizing the energy infrastructur.

    Some of the government regulations surrounding solar panel production

    Energy Act and Supported Sources Act:28 These acts form the primary legal framework for electricity production and renewable energy sources (RES). They outline the basic rules for electricity generation, including solar energy, and specify details through subordinate legislation such as regulations and decrees.

    Grid Connection: Solar power plants must comply with grid connection regulations. The Energy Regulatory Office oversees the licensing and regulation of electricity producers, ensuring that solar plants meet the necessary technical and safety standards.

    Permitting Procedures: Recent amendments to the Czech Energy Act and the Czech Construction Act (known as Lex RES I) have streamlined the permitting procedures for renewable energy sources. Notably, no electricity generation license is required for sources up to 50 kW.

    Zoning Permit: This permit is required to ensure that the location of your manufacturing facility complies with local zoning laws.

    Building Permit: Before constructing or modifying a facility, you need a building permit. This ensures that the construction meets all safety and environmental standards.

    Environmental Impact Assessment (EIA): Depending on the size and impact of your manufacturing facility, you may need to conduct an EIA to assess the potential environmental effects.

    Operational Permit: Once the facility is built, you need an operational permit to start manufacturing. This may include a trial operation period to ensure everything functions correctly.

    Energy Regulatory Permits: If your manufacturing process involves significant energy use or generation, you may need additional permits from the energy regulatory authorities.

    Investment Security: Legislation ensures investment security for solar energy suppliers by guaranteeing a buyout price for solar-generated electricity, which is higher than that for conventionally generated electricity.

    Government initiatives in solar panel production (includes investments and subsidies)

    293031

    National Recovery Plan: This plan, approved by the European Commission, allocates significant funds to support photovoltaic (PV) systems. This funding supports investments in construction of new photovoltaic sources and the modernization of heat distribution in district heating systems.

    Subsidies for Photovoltaic Systems: The government offers subsidies for PV systems with or without storage, financed from the National Recovery Plan. The aid rate is 35% of eligible costs for PV plants and up to 50% for battery storage outside Prague.

    Green Savings Program: This program, originally launched in 2014, has been refueled to support energy-saving initiatives, including rooftop PV rebates. It has already supported 180,000 households with significant funds.

    Rebates for Small PV Projects: The Ministry of Industry and Trade has earmarked $177.1 million to support PV projects not exceeding 1MW in size. This initiative aims to reduce energy dependence on Russia.

    The Transition Fund: is a crucial EU tool designed to help regions achieve climate neutrality by 2050. For the Czech Republic, the fund’s allocation is estimated between EUR 2 to 4 billion. Three regions—Ústí and Labem, Moravian-Silesian, and Karlovy Vary—qualify for this scheme. The fund finances new green energy technologies, reduce greenhouse gas emissions, revitalize areas impacted by coal mining, and retrain workers who lose their jobs due to the transition.

    Notable solar projects in the country (installed and projected)

    32

    Installed Projects

    Ralsko Solar Plant

    • The Ralsko Solar Plant is a 55.76MW solar PV power project located in Liberec, the Czech Republic. Post completion of construction, the project was commissioned in 2010. The project was developed by 3L invest.

    Veprek Solar Park

    • The 35MW Veprek Solar Park solar PV power project is located in Central Bohemian, the Czech Republic. It was commissioned in 2010. The project is owned by FVE CZECH NOVUM.

    Sevetin Solar Plant

    • The Sevetin Solar Plant is a 29.90MW solar PV project. It was commissioned in 2010. The project was developed by Gentley; CEZ Obnovitelne zdroje. It is located in South Bohemia, the Czech Republic.

    Brno Airport Solar PV Park

    • The Brno Airport Solar PV Park solar PV project with a capacity of 21.20MW came online in 2010. Jufa Group of Investment have the equity stakes in the project. It is located in South Moravian, the Czech Republic.

    Czech Solar pv

    • The Czech Solar pv has been operating since 2011. The 20MW solar PV project is located in , the Czech Republic. Scatec have the equity stakes in this project.

    Projected Projects

    Tusimice Solar PV Project: 33

    • Location: Usti nad Labem
    • Capacity: 87.65 MW
    • Details: Developed by CEZ, it is expected to commence construction in 2024 and enter commercial operation by 2026.

    Some of the notable solar companies (plus brief details on what they do)

    3435

    Nanosun:

    Based in Prague, Nanosun is a leading name in the Czech solar industry, specializing in the installation of solar panels Nanosun provides comprehensive services, including initial consultations, system design, installation, financing support, and long-term maintenance.

    Solarbeam:

    Also located in Prague, Solarbeam is a well-regarded company in the Czech Republic, specializing in the installation of photovoltaic (PV) systems. It offers a range of services including system design, installation, and assistance with securing subsidies and grants.

    Česká Solární:

    Headquartered in Liberec, Česká Solární brings extensive experience to the table with its solar energy solutions. They provide comprehensive project management from initial consultation and design to installation and commissioning.They also offer long-term maintenance and technical support to ensure the optimal performance of installed systems.

    SOLEK Holding:

    Is a leading company in the Czech Republic specializing in the production and installation of solar panels and other renewable energy solutions. They focus on developing, building, operating, and maintaining solar power plants across Europe and Latin America.

    EKOTECHNIK Czech:

    Specializes in the design and construction of photovoltaic (PV) power plants they are known for their innovative solar energy products and services, EKOTECHNIK Czech is a prominent player in the market.

    Photon Energy NV

    This company focuses on developing and managing solar power projects, including the construction of solar farms.

    Canadian Solar:

    Develops, manufactures, and sells solar modules, providing solutions for commercial and residential purposes. Significant projects include the El Mayo Solar PV Park in Sonora.

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