The Czech government has voted in favour of draft legislation that would end subsidies for all new renewable energy projects.
PV projects would be in the first wave of subsidy cuts, which would come into effect at the start of 2014.
The draft bill was approved at an extraordinary cabinet meeting at the end of last week, but has yet to be approved by the Czech parliament.
The Czech government has long been concerned over the impact of subsidies, particularly for PV, on consumer electricity bills, and had already introduced a controversial tax on solar installations in an attempt to subdue the country’s PV boom.
“The reason for this law amendment is the rising financial burden for electricity consumers,” prime minister Jiri Rusnok said in a statement following last week’s resolution. “It threatens the competitiveness of our industry and raises consumers’ uncertainty about power prices.”
It is understood that if the law is approved, no new solar or biogas plants built from 1 January next year will be eligible for subsidies. Because of their longer construction times, hydro, wind and biomass power plants permitted this year will be eligible for support if they’re completed before the end of 2014.
According to local website Prague Daily Monitor, unless the draft law is passed by October, the national Energy Regulatory Office will have to set electricity prices for the coming year based on existing rules, meaning subsidies continuing.
Earlier this year Czech reached the 2GW milestone for installed PV capacity.