As of November 2023, Hungary solar power total installed capacity reached approximately 5.5 gigawatts (GW).⁵

Hungary has set an ambitious target to reach 14 GW of installed solar capacity by 2030.⁶

• Natural Gas: 186 $/ MWh⁷
• Nuclear: 55.7–61.3 $/MWh⁸
• Solar PV: 78 $/MWh⁹

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• Nuclear Power: 48%
• Coal: 11%
• Natural Gas: 28%
• Solar Power: 5%
• Other Renewables (biomass and wind): 7%

According to the International Energy Agency (IEA), Hungary does not face immediate generation adequacy concerns, with total installed capacity well above peak load levels. The country has a comfortable capacity margin, allowing electricity availability for a full 24 hours each day.¹¹

As of January 2024, over 250,000 homes in Hungary have solar panels installed, almost a quarter more than originally expected by 2030.¹²

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Hungary’s total installed solar capacity reached 5.6 GW, with 3.3 GW coming from industrial-scale solar farms.

There are plans for around 5 GW of additional utility-scale solar projects in the pipeline over the next few years.

Hungary has developed several significant solar farms, including the Kaba, Kapuvár, and Paks solar parks, which highlight the country’s commitment to expanding its renewable energy capacity and reducing carbon emissions.

The country’s largest solar power plant built in Mezőcsát , covering 440 hectares with 466,000 solar panels, was recently commissioned in 2023.

In October 2022, Hungary introduced regulations allowing sub-50 kW grid-connected household solar systems. This suggests the off-grid market for small residential systems may be limited. ¹⁶

While Hungary has seen rapid growth in its overall solar capacity, the market appears to be focused more on grid-tied systems at this stage rather than rural off-grid applications.¹⁷

Hungary’s total capacity of grid-connected solar installations has reached over 5.6 GW as of 2023. This includes approximately 3.3 GW from industrial solar power plants and around 2.3 GW from residential systems.⁵

In 2023 alone, Hungary deployed a record 1.6 GW of new solar capacity, over 1.5 times more than the previous record year of 2022.¹⁴

Salaries can vary based on factors such as experience, skills, gender, and location within Hungary. Professionals in Budapest tend to earn higher salaries compared to other regions.

• The average monthly salary is estimated to be between $706 and $988 before taxation.¹⁸
• Solar Energy System Installer: the average monthly salary is approximately $1,464.¹⁹
• Solar Engineer: the average monthly salary is approximately $1,149.²⁰
• Solar Energy Systems Engineer: the average monthly salary is approximately $1,132.²¹

The current population of Hungary is 9,669,709.²²

Estimate for Factory Rent

The average rent for industrial-logistics properties in Hungary, particularly in Budapest and its surroundings, typically ranges from $4.89 to $5.50 per square meter per month as of late 2021.²³

Industrial Electricity Rates

The industrial electricity rate in Hungary for non-household consumers is around $0.33 per kilowatt-hour for those with an annual consumption between 500 to 2,000 megawatt-hours.²⁴

Water Costs

The cost of water for businesses in Hungary varies by municipality, but generally, it is around $0.63 per m³ for water supply. This price typically includes both the water supply and sewerage services.²⁵

Salaries and Wages

Worker of solar industry in Hungary earn between from $1,132 and $1,464 monthly, depending on the position.¹⁸¹⁹²⁰

Rent for Office Space

The average price for an office in central locations in Budapest is approximately $30 to $75 per square meter per month.²⁶

Insurance

In Hungary, the average spending per capita in the insurances market is expected to amount to $421.90 in 2024.²⁷

Energy Mix ⁴

Hungary’s energy mix is characterized by a significant reliance on nuclear and natural gas.

The country aims for a low-carbon electricity mix of 90% by 2030, with plans to phase out coal power generation by 2025 or 2030. Renewables are expected to play a crucial role in this transition, with Hungary targeting a 23-25% share of renewables in final consumption by 2030.

Infrastructure and Interconnections²⁸

Hungary has developed a robust energy infrastructure, including:

• Electricity Grid: The national grid comprises high-voltage transmission lines (750 kV, 400 kV, and 220 kV), facilitating connections with neighboring countries.
• Interconnectivity reached 55% in 2020, with ongoing projects to enhance links with Slovenia and Slovakia.
• Natural Gas Pipelines: The country has around 65,000 kilometers of gas lines, managed primarily by MOL. New compressor stations have improved access to southern gas markets, and Hungary has six gas interconnection points.
• Storage Facilities: Hungary has significant underground gas storage capacity, with approximately 3.2 billion cubic meters available across several sites

Export and Import²⁹

Hungary’s energy import strategy focuses on diversifying supply routes, particularly for natural gas, which is crucial for residential heating. The country imports gas primarily from Russia but has also started importing liquefied natural gas (LNG) from Croatia since 2021. The N-1 indicator, a measure of gas supply security, has been above 100%, indicating a strong position in terms of gas supply resilience

Policy Goals ³⁰

Hungary’s energy policies are directed towards achieving carbon neutrality by 2050. Key goals include:

• Increasing Renewable Energy: Aiming for a significant increase in renewable energy share, particularly solar and biomass.
• Nuclear Expansion: Plans to expand the Paks Nuclear Power Plant’s capacity by 2.4 GW to ensure long-term energy security.
• Energy Storage and Grid Modernization: The government plans to increase energy storage capacity to at least 1,000 MW by 2026 and enhance grid infrastructure to accommodate decentralized generation and variable capacity.

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Legal Basis: The primary legislation governing the installation of solar panels is Act LXXXVI of 2007 on electricity, along with relevant building regulations and urban planning ordinances specific to municipalities. These regulations dictate the requirements for connecting solar installations to the national grid and the conditions under which they can operate.

Installation Guidelines: Solar panels with a capacity of less than 50 kW can be installed by private individuals and companies. However, larger installations face significant administrative hurdles, particularly concerning grid capacity. A ban on new licenses for solar plants above this threshold was implemented due to grid capacity issues, although smaller installations for self-consumption are still permitted.

Environmental and Land Use Regulations: If solar installations exceed 2 hectares (or 0.5 hectares within a nature reserve), an environmental impact assessment is required. Additionally, any use of agricultural land for solar projects necessitates approval for land use conversion from agricultural to non-agricultural purposes.

Energy Storage Requirements: The regulatory framework mandates that weather-dependent renewable projects, including solar, must have energy storage capabilities, although this requirement has been temporarily suspended due to geopolitical circumstances.

Grid Capacity Challenges: There are ongoing discussions about enhancing grid capacity and revising the regulations affecting solar installations, particularly for small-scale systems. The government has indicated a willingness to support larger solar projects, aiming to increase overall capacity significantly.

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Solar Energy Plus Programme: Launched in December 2023, this program supports families in installing modern solar systems by providing non-refundable financial assistance. Households can receive up to approximately $14,457 in support, covering about two-thirds of installation costs. This initiative is expected to assist over 15,000 households in becoming more energy self-sufficient.

Investment in Energy Storage: The government is allocating $180 million to encourage domestic companies to establish and operate energy storage facilities. This initiative aims to increase the current industrial energy storage capacity from 20 MW to 400 MW by 2026. Successful applicants will receive non-repayable investment grants and income compensation, with additional incentives like tariff rebates and halved connection fees for new storage facilities.

Support for Contractors: The Solar Energy Plus Programme simplifies the application process for contractors by eliminating the need for subcontractor registration. This change aims to streamline the installation process and encourage more companies to participate in the solar market.

Removal of Grid Connection Ban: Starting January 1, 2024, the government lifted a temporary ban on residential solar panel systems feeding excess electricity back into the national grid. This change affects 93% of the national grid and will benefit 84% of households with solar panels installed before January 1, 2026, allowing for annual electricity bill settlements over ten years.

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Mezőcsát Solar Power Plant: This is Hungary’s largest solar power plant, covering 440 hectares and consisting of 466,000 solar panels. It has an annual production capacity of 372 GWh, sufficient to meet the energy needs of a city like Debrecen for half a year. The investment cost exceeds $272.5 million and is expected to reduce carbon emissions by 130,000 tons annually.

Kaba Solar Park: Kaba Solar Park is one of Hungary’s largest solar power installations, covering 70 hectares with 97,000 solar panels. It has an annual production capacity of approximately 43 MW, generating around 55 GWh. The project cost exceeded $50 million and is designed to reduce carbon emissions by 25,000 tons annually.

Kapuvár Solar Park: Kapuvár Solar Park spans 220,000 square meters and consists of 100,000 solar panels. It generates 45 MW annually, sufficient to power over 16,000 homes. With an investment of $35 million, it reduces carbon emissions by 30,000 tons per year.

Paks Solar Park: Located near the Paks Nuclear Plant, this solar park covers 51 hectares and consists of 74,000 solar panels. It has a capacity of 20.6 MW, producing 25 GWh annually, enough to supply energy to 10,000 homes. The investment cost was $25 million, and the project cuts carbon emissions by 15,000 tons annually.

Mátra Solar Power Plant (Bükkábrány): This plant is part of the Mátra complex and covers 60 hectares with 86,000 solar panels. It has a capacity of 16 MW, generating 20 GWh annually. The investment exceeded $20 million, reducing carbon emissions by 12,000 tons per year.

Felsőzsolca Solar Park: Felsőzsolca Solar Park spans 45 hectares and consists of 110,000 solar panels. It has an annual production capacity of 20 MW, generating 30 GWh, which can power 12,000 homes. The project cost $27 million and aims to cut carbon emissions by 18,000 tons annually.

Duna Solar Park: Covering 42 hectares and comprising 98,000 solar panels, Duna Solar Park has a capacity of 17 MW, generating 22 GWh per year. The investment of $22 million is expected to reduce carbon emissions by 14,000 tons annually.

Szügy Solar Park: Szügy Solar Park is spread over 40 hectares with 85,000 solar panels. It has a capacity of 15 MW, producing 20 GWh annually, sufficient for 8,000 households. The project, costing $18 million, reduces carbon emissions by 12,000 tons annually.

Mátra Solar Power Plant (Visonta): This solar plant, part of the Mátra complex, covers 50 hectares with 95,000 solar panels. It has a capacity of 20 MW, generating 26 GWh annually, enough to power 10,000 homes. The project cost $25 million and cuts carbon emissions by 16,000 tons per year.

Tiszaszőlős Solar Park: Tiszaszőlős Solar Park spans 35 hectares and comprises 75,000 solar panels. It has an annual production capacity of 14 MW, generating 18 GWh. The investment of $17 million is expected to reduce carbon emissions by 10,000 tons annually.

Pécs Solar Park: Pécs Solar Park, covering 38 hectares with 80,000 solar panels, has a capacity of 16 MW. It generates 21 GWh annually, sufficient to meet the needs of 8,000 homes. The project cost $20 million and reduces carbon emissions by 13,000 tons per year.

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Alteo Nyrt.

• Headquarters: Budapest, Hungary
• Website: https://www.alteo.hu/
• Details: Alteo is a key player in Hungary’s energy sector, specializing in renewable energy solutions, including solar power plant development and energy storage.

MVM Group

• Headquarters: Budapest, Hungary
• Website: https://www.mvm.hu/
• Details: One of Hungary’s largest energy companies, MVM Group is heavily invested in solar power projects, enhancing the country’s renewable energy portfolio.

Solar Markt Kft.

• Headquarters: Budapest, Hungary
• Website: https://www.solarmarkt.hu/
• Details: A leading distributor of solar equipment in Hungary, Solar Markt Kft. offers a wide range of solar panels, inverters, and mounting systems.

Manitu Solar

• Headquarters: Debrecen, Hungary
• Website: https://napelemnagyker.hu/
• Details: Manitu Solar provides comprehensive solar energy solutions, from system design to installation, targeting residential, commercial, and agricultural sectors.

Mile Kft.

• Headquarters: Budapest, Hungary
• Website: https://www.mile-kft.hu/
• Details: Mile is a major distributor in Hungary, offering a diverse selection of solar panels and inverters from 21 different brands.

ExtremeSolar

• Headquarters: Pest, Hungary
• Website: https://www.extremesolar.hu/
• Details: A significant distributor of solar equipment, ExtremeSolar provides products from 10 different manufacturers, focusing on quality and innovation.

Green Plan Energy

• Headquarters: Borsod-Abaúj-Zemplén, Hungary
• Website: https://greenplan.hu/
• Details: Green Plan Energy is a notable distributor in the Hungarian market, offering solar products from 10 different brands.

Solar Kit Hungary Kft.

• Headquarters: Budapest, Hungary
• Website: https://solar-kit.hu/
• Details: Solar Kit Hungary specializes in solar kits and equipment, serving as a key supplier for solar installers with products from 14 different brands.