PRAGUE, Dec 11 - The Czech lower house of parliament approved amendments to state aid regulations for solar power plants, a decision that may reduce support for certain projects. The bill, which still requires approval from the upper house, mandates that solar facilities built between 2009 and 2010 provide annual profitability calculations to determine eligibility for state aid.
Additionally, the calculations will now encompass the entire lifespan of a solar plant rather than just the period during which state support is granted. Some contentious proposals, such as reducing the allowed return on investment for solar facilities, were not approved by lawmakers.
The government, facing a parliamentary election next year, cited the need to limit state aid to stabilize the budget. However, industry representatives criticized the bill, claiming it undermines commitments to investors and could lead to significant financial repercussions for banks involved in solar project financing.
Jan Krcmar, head of the Solar Association, expressed concerns about the potential impact on foreign investment, stating that several investors are considering legal action against the government.