Installation of Solar Farms

For large photovoltaic power plants, the capacity of hundreds of kWp is commonly installed; however, there are projects with the capacity of several MWp. Most often, they are installed on free grounds which are exposed to the sun for the whole day. In this case (as well as in the case of small photovoltaic plants), the contract with the distribution company and with the Energy Regulatory Office must be concluded regarding the deliveries and sale of the energy from the photovoltaic power plant.

In principle, the solar plants do not differ from an installation on the roof of a house. The only difference is in the size of the project, the necessity to build the structural supporting system /fixed, swivelling/ and in the possibility to connect to the network of the local distributor with the necessary capacity. In the case of a very remote connection point, the increase of investments and prolongation of the preparatory stage in terms of negotiating with the owners of adjoining properties must be considered.

What must be done to launch the photovoltaic power plant?

1. assess the possibilities of the installation
2. prepare the economic study and propose the size of the system
3. ask the energy company to establish a connection point and to reserve the network capacity
4. prepare the project documentation
5. install the photovoltaic power plant and start the trial run
6. obtain the licence at the Energy Regulatory Office and sign the contract with the distribution company

Why is the photovoltaic system advantageous for you?

In addition to the environmental benefit, the return of your investment is important. As the Czech Republic pledged to generate 8% of the gross electricity production from renewable resources by 2010, it also had to create the conditions to achieve this objective. To do so, it introduced a system of combination of purchase prices with the system of green bonuses which has already proven useful in other EU countries. So you have two options in terms of how to handle the energy and which of the subventions to obtain.
You will supply all generated energy to the distribution network (ČEZ, EON) for the purchase price. That is set by the Energy Regulatory Office every year (for the year 2008, this price was CZK 13.46 without VAT per kWh; in the conditions of our country, the photovoltaic system with a nominal output of 1kWp is able to produce approx. 1,000 kWh of electric power a year). The purchase price is guaranteed for twenty years during which it cannot drop; on the contrary, it will increase according to the PP index (producer price index, the so-called "industrial inflation“).
You will use at least a part of the generated electric power for your needs and sell the surplus to the distributor. The purchase price is lower in such case (CZK 12.65/kWh), but you will save on your own consumption of the energy that you produced yourselves and so you do not have to buy it. In this case, the so-called green bonus applies (a sort of premium increasing the market price of the electric power while a lower environmental impact of the photovoltaic system is considered). This system of subvention is more advantageous than the system of purchase prices, because it requires lower input costs and enables higher profits.
It must be also added that in accordance with Act No. 586/1992 Coll. on income taxes, the revenues from the operation of renewable energy resources are exempt from profit tax (in the year of the power plant launch and for a further five years). For the same period of time you will also be exempt from the property tax.
In addition to the above-mentioned subvention, the state provides a subsidy for photovoltaic systems up to 5kWh from the State Environmental Fund, amounting to 50% (max. CZK 200,000). So an investment amounting to CZK 400,000 is the most advantageous. For your guidance, this price enables the purchase of a solar plant with a capacity of approx. 2 kWp, which generates approx. 1.9 MWh of electric power a year. The return on investment shortens to six years if the subsidy is used.