Feed-in tariff (Act on the Promotion of the Use of Renewable Energy Sources)

In the Czech Republic, the generation of energy from renewable energy sources is primarily promoted through a feed-in tariff. System operators may choose between a guaranteed feed-in tariff and a green bonus paid on top of the normal electricity price achieved in the market (see also "Premium Tariff").

Electricity generators may change this choice of payment system once per year (Chapter 2 § 4 Cl. 3 Act No. 180/2005, Sbírka zákonu). To enforce their claim for the feed-in tariff, system operators are obliged to conclude an agreement with the grid operator.

From 1 March 2011, the tariff will only apply to roof-top and wall-mounted photovoltaic systems with a capacity of up to 30 kW (systems connected after this date) (from 1 March 2011: Chapter 1 § 3 Cl. 5 Act No. 180/2005 Coll.). The claim for payment is legally guaranteed for 20 years.

The Energy Regulation Office determines the feed-in tariffs for the following calendar year for the various different technologies used for the generation of electricity from renewable energy sources (Chapter 2 § 6 Cl. 1 Act No. 180/2005 Coll.). The feed-in tariffs for new systems in the following calendar year should not be lower than 95% of the tariffs applicable at the time of definition.

The feed-in tariffs are adjusted annually to the Index for Industrial Production for existing systems (Chapter 2 § 6 Cl. 1 Act No. 180/2005, Coll.).