Czech Republic: 2025 – A Year Full of Legislative Amendments, a Review and Outlook

However, the annual increase slowed down compared to previous years, mainly due to a cooling of the small rooftop system segment. At the same time, 2025 saw increasing interest in larger photovoltaic projects in the megawatt range, especially in connection with industrial self-consumption or long-term power purchase agreements. Thus, in 2025, larger projects were finally realized again, including a total of 20 projects with an installed capacity of over 1 MW, and two projects (from ČEZ and Pražská energetika) even have an installed capacity of around 20 MW. Although wind power continued to stagnate, improved structural conditions for such projects were created for the first time in years.

Streamlining Permitting Procedures and Designation of Acceleration Zones

With several amendments to energy and building law, particularly the Act on Accelerating the Development of Renewable Energy Sources and Lex Plyn, the target was to significantly shorten the previously very lengthy permitting processes for renewable energy installations.

A central instrument in this regard is the designation of so-called acceleration zones. In these areas, projects for photovoltaic and wind power plants are to be approved under simplified conditions. Specifically, shortened approval periods (maximum 12 months) and standardized environmental impact assessments (EIA) without individual review are planned, which should also lead to increased planning certainty for project developers.
For smaller photovoltaic systems, even shorter deadlines apply in some cases; in certain situations, a deemed approval even applies if the competent authorities do not decide within the legally stipulated period. Since 2023, larger projects from 1 MW have been considered to be in the public interest, and now projects from 15 MW are considered structures for energy security, which is advantageous in the building permit process for any balancing of interests and should accelerate the procedure.

Already in 2023, Lex OZE I raised the thresholds for installed capacity for simplified procedures, meaning that smaller systems up to 100 kW can generally be built without comprehensive energy or building law permits.

At the same time, mandatory participation of municipalities in wind power projects was introduced. Municipalities now have a right to participate in the revenues from electricity generation, which is intended to increase local acceptance of such projects. The amount to be paid by the operator is limited to a maximum of CZK 50/MWh (approx. EUR 2/MWh), which municipalities can reduce to zero at their discretion.

Enabling Agri-PV

In 2025, the legislator finally created a legal framework that allows the simultaneous use of agricultural land for food production and electricity generation. Provided that the PV system meets certain technical requirements for spacing and height, PV systems can also be erected on soils of the highest quality. A reclassification of the land and its removal from the agricultural land fund is then no longer necessary. Permitted uses include viticulture and hop cultivation, orchards, nurseries, areas with containers or areas with truffles, and so-called labor-intensive vegetables. In addition, a new funding program for agri-PV was launched at the end of 2025, alongside the existing funding programs for PV systems, which are financed through the Modernization Fund.

Accumulation, Aggregation, and Flexibility

Another significant factor for the further expansion of renewable energy in the Czech Republic is the use of battery storage. Here too, the amendments in Lex OZE III finally created an appropriate legal and tariff framework that makes the operation of stand-alone battery storage possible in the first place. Furthermore, this law established a legal basis for aggregation and flexibility. The possibility of energy sharing has existed since 2024 (Lex OZE II).

Reserved Grid Connections

Another central impediment to the expansion of renewable energies has been the speculative reservation of grid connection capacities. An amendment to the Energy Act (Lex Plyn) has now counteracted this practice. In the future, reservation fees, some of which are non-refundable, must be paid for connection applications. Grid connection reservations will be more strongly tied to actual project progress; unused capacities can be released again after certain deadlines. This also applies to already concluded connection agreements. These measures are intended to help use limited grid capacities more efficiently and prioritize realizable projects.

Legal Certainty for Existing Plants Commissioned in 2009–2010

For operators of older photovoltaic systems, 2025 also brought an important clarification with the adoption and entry into force of the so-called Lex Plyn. The originally planned introduction of individual over-subsidization reviews for photovoltaic systems from 2009 and 2010 was ultimately rejected. This eliminated significant legal and investment uncertainty.

Outlook

The year 2025 can be assessed as a year of structural realignment for renewable energies in the Czech Republic.
For further development, it will be crucial whether the improved legal framework can be combined with viable, market-oriented support and financing models (e.g., Contracts for Difference). We will keep you informed about further developments here.

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