Czech Republic’s FiT rate slashed by 5%

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The feed-in tariff rate in the Czech Republic of between €0.50/kWh and €0.52/kWh is locked in for 20 years, yet the Czech government has always held a possible annual cut for this rate, which has a maximum cost decrease of 5% per year. This 5% cut has now been announced and will be fully implemented at the beginning of 2010.

Energy generators who produce solar energy sold to any of the country’s three main power distributors from the beginning of 2010 onwards will now receive approximately €0.475-0.494/kWh according to the Energy Regulatory Office.

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The Czech Republic has so far attracted a good amount of investment in Eastern Europe due to its generous subsidies, yet investors are now concerned that Prague may reduce the FiT even further. Czech capacity is therefore expected to reach somewhere in the region of 200MW by the end of 2009 as investors rush to install all planned power systems before the tariff rate is slashed.

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