Funds from the Modernisation Fund for supporting renewable energy sources are directed exclusively toward the construction of photovoltaic power systems
PRESS RELEASE ON AUDIT NO 24/06 – 30 June 2025
In 2024, the Government of the Czech Republic decided that by 2030, 30% of consumed energy should come from renewable sources. Therefore, it is necessary to connect photovoltaic power systems (PV systems) with a capacity of 10.1 GWp* and wind turbines with a capacity of 1.5 GW to the power grid. The Supreme Audit Office (SAO) found that the Ministry of the Environment (MoE) and the State Environmental Fund (SEF) supported only photovoltaic projects from the Modernisation Fund. Projects from four calls audited by the SAO under the Emerging Renewable Energy Sources in the Energy Sector (RES+) programme with subsidies totalling CZK 12 billion and a total planned newly installed capacity of 2.2 GWp will double the capacity of solar power plants in the Czech Republic compared to 2022, when it was 2.1 GWp.
However, there are no remaining funds in the programme for other renewable sources, such as the aforementioned wind power plants. The Czech Republic will approach its government-set target primarily through business projects. Nevertheless, the MoE and the SEF significantly favoured households in their subsidy decisions. While subsidies for businesses were set at an average of CZK 5,500 per kWp of capacity, households and municipalities, as well as their organizations, received an average of CZK 29,700 per kWp of PV system capacity. The financial support provided by the MoE and the SEF for PV systems construction in households or on public buildings yields an installed capacity five times lower than that of the financial support provided to business entities. The SAO also notes that the MoE and the SEF failed to sufficiently encourage investments in electricity storage.
From January 2021 to June 2024, the SEF, which is the administrator of the Modernisation Fund, received a total of CZK 105.6 billion from the European Investment Bank (EIB) and paid out CZK 32.8 billion to beneficiaries from various programmes of the Modernisation Fund. Of these, CZK 12.7 billion was in subsidies from the RES+ programme. As we mentioned in the introductory summary, this particular programme was the focus of the SAO audit.
In 2023, renewable sources covered just under 19% (18.59%) of total energy consumption in the Czech Republic. In December 2024, the government passed a resolution stating that 30% of total energy consumption should come from renewable sources by 2030. To achieve this, PV systems with a capacity of 10.1 GWp and wind power plants with a capacity of 1.5 GW must be connected to the power grid.
The supported business projects (from the four audited RES+ calls) with CZK 12 billion in subsidies and 2.2 GWp of newly installed capacity, will double the PV power output in the Czech Republic compared to 2022, when the output was 2.1 GWp. The SAO found that the MoE and the SEF supported only PV system projects through the RES+ programme. The Czech Republic has justified to the EIB investments for PV systems financed by the RES+ totalling CZK 73 billion, which represents 95% of the latest estimated RES+ programme allocation as of September 2024. If there is no increase in Modernisation Fund revenue from 2025 to 2030—which depends on the market price of emission allowances—and the already approved RES+ investments are carried out, there will be no funds left in the Modernisation Fund for supporting other renewable energy sources.
The SAO also found that the MoE and the SEF set significantly different financial support conditions for businesses and households regarding PV systems. Business entities received an average subsidy of CZK 5,500 per kWp, while households and municipalities, as well as their organizations, received CZK 29,700 per kWp. The contribution of PV systems installed on family homes and public buildings to the planned newly established capacity is five times lower (0.5 GWp) than that of business projects (2.2 GWp).
The SAO analysed the structure of business subsidy recipients. It found that more than CZK 9 billion—three-quarters of financial support from the audited RES+ calls—was awarded to only 15 recipients, covering 219 of the 725 supported projects. The largest recipient will receive CZK 4.4 billion for 49 projects.
The SAO also found that investments in newly established renewable energy capacity, which were supported by the MoE and the SEF in the first four RES+ calls, include battery energy storage capacity only at the level of 7% of the planned PV system capacity. Increasing the installed PV capacity places greater demands on the development of the transmission and distribution network, as well as on the energy storage.
In examining financial support conditions, the SAO found that the MoE and the SEF gave preference to coal regions (Karlovy Vary Region, Moravian-Silesian Region, and Ústí nad Labem Region) in two audited calls. Due to this preference and the supported projects, the total installed PV system capacity in these coal regions will increase more than sixfold compared to 2022, while in the rest of the Czech Republic it will rise by only one-third.
The audit examined 12 projects. According to the SAO, subsidy recipients used the funds in agreement with the approved objectives.
Communication Department
Supreme Audit Office
* For PV, the unit "peak" (GWp) usually refers to the peak power—i.e., the maximum power a photovoltaic panel or system can produce under standard test conditions.