– Support for continuous solar construction through the Modernization Fund and New Green Saving Program
– Czech government to build at least 2025 roof-type solar power plants by 10
Product name and HS Code
– Product Name: Solar Panel
– HS Code: 8541.40 (photosensitive semiconductor devices including photovoltaic cells, light emitting diodes)
*From 2022, EU HS code 85414090 → 854142 / 854143 / 854149
market trend
Solar power generation is attracting attention in the Czech Republic as the importance of expanding renewable energy for response to the climate crisis and energy independence is increasing. Solar power is a safe and clean infinite energy, and it can be installed from large-scale power plants to the roof type of buildings, and because it is relatively easy to expand the power generation capacity in terms of construction period and cost, it is emerging as a field with high potential among renewable energy.
The Czech government is promoting the expansion of nuclear and renewable energy generation with the goal of stopping coal power generation, which currently accounts for the largest share at 40%, by 2033. Accordingly, in a statement earlier this year, Fiala's cabinet had prioritized the expansion of solar power among renewable energies, targeting at least 2025 rooftop solar installations by 10. In addition, the EU Commission plans to increase solar power generation to 5GW by 2025 and 320GW by 2030 as part of the REPowerEU plan to reduce the EU's dependence on Russian energy in May. In addition, by 600 for all new public and commercial buildings and 2026 for new residential buildings, it is expected that the European solar panel market will further expand by announcing plans to promote roof-type solar panel installation.
The size of the installation of solar power in the Czech Republic greatly increased from 2009 to 2010 due to a boom following the government's active solar power support, and then suffered a stagnant period for the past 10 years due to the aftermath of transitional support. is a trend to According to data from the Czech Photovoltaic Association, as of 2020, the installed size of photovoltaic power generation in the Czech Republic was 2,227 MWp, showing a modest increase since 2018.
<Czech solar power generation scale>
(Unit: MWp, pcs.)
Note) 2021 estimate
[Source: Czech Solari Asociace]
In 2021, the number of new photovoltaic power generation facilities increased by 9,321 compared to the previous year, but the average new photovoltaic power generation capacity was 6.7kWp, mainly because small-scale roof-type photovoltaic power generation panels were installed. This is because up to now, up to 10kW of solar power installed in houses can be supported, and an operating license is required when installing more than 10kW. However, MOTIE is currently in the process of amending the Energy Act, including expanding the license-required capacity (up to 40kW) and accelerating the photovoltaic construction permit process (no photovoltaic power generation permit under 20kW). This will help increase new construction capacity in the future, and the Czech Solar Energy Association also predicts that the main trend will shift over the next few years to large-scale roof and ground power plants.
The growth rate of solar power generation in the Czech Republic is still slower than that of neighboring countries, but growth is expected to accelerate in the future as EU funds inflow and subsidy support expand. Based on the number of subsidy applications, Czech Republic Deputy Minister MOTIE said that up to 2022 new solar power plants could be built in 4, almost four times the previous year. If this rate continues, it is expected that 4 roof-type solar power plants can be built by 2025, the government's goal. expected to be installed.
For Czech consumers, 50% of the cost of installing solar power, up to 20 Koruna (about $8400 million), can be supported through the housing energy efficiency support program (New green savings, using the National Recovery Fund). has become a major factor in its adoption. In fact, the industry is also experiencing high consumer interest. Company S, a local representative solar power installation company, receives an average of 1,800~2,500 cases per month for roof type solar power installation, which is 2.5 times higher than last year, and the local construction company K A company official said that when designing a new home, 70% of customers want to install solar panels.
In addition, the Czech Republic is expected to receive about 2030 billion Koruna (about $ 1500 billion) from the EU modernization fund supporting carbon neutral transition by 63, and about 600 billion won for the construction of new and renewable energy power plants including solar power among the modernization fund operation programs. Koruna (approximately $25 billion) was allocated. In March 2200, about 2022 large-scale solar power plant (3 MW and above) construction projects were approved for the Modernization Fund Program, with approximately CZK 57 billion (approximately $1 million) to be provided for the construction of the power plants. In addition, solar installations in production facilities are increasing in order to convert the energy source required for manufacturing to carbon neutral. Skoda Motors plans to build 30 roof-type solar panels at its Mlada Boleslav plant that can produce 1 MWh of electricity per year, and Hyundai Motor will also install solar panels at its production plant in the Czech Republic next year that can reduce carbon emissions by 2600 tons per year. He said that construction of the facility would begin.
Import Trends and Scale of Imports from Korea
The Czech Republic's solar panel imports (based on HS code 854140) decreased slightly in 2020 due to the corona virus, but in 2021, it recorded $74.5 million, a 2% increase from the previous year. The Czech Republic is the largest importer of solar panels from China, and the proportion of imports also increases every year, accounting for almost half of the total imports in 8471. Solar panels are imported from Asian countries and the United States, with the exception of Germany, the Netherlands, and Italy among the top 2021 importing countries, and imports from Asia account for about 10% of the total.
Korea is the ninth largest importer of solar panels in the Czech Republic as of 2021, and imports from Korea amounted to 9 million dollars. In 331, the amount of imports increased by 2020% compared to the previous year, but decreased slightly in 16.
<Czech photovoltaic panel (HS code 854140) import status>
(Unit: thousand dollars, %)
Note) Czech Statistics Korea import statistics are based on country of origin
[Source: Czech Statistics Korea (as of June 2022, 6)]
Competitive trends and distribution structure
As the Czech Republic suffered a prolonged stagnation due to reduced support policies, the number of Czech solar module manufacturers also decreased. According to Solar Power Europe, there are 144 European PV-related manufacturers (polysilicon, modules, cells, inverters, etc.), of which Czech manufacturers are Fill Factory (module production) and only one appeared as an opener. Chinese companies that are prominent in the global market are increasing their market share in the Czech market, and products from Chinese companies such as Longi, Suntech, Trina, Jinko Solar, and JA Solar are distributed and sold. In addition, products from companies such as Canadian Solar (Canada), Hanwha Q cells (Korea), and Victron Energy (Netherlands) are being sold. In addition to houses, the use of solar power for cottages (summer cottages) and campers common in the Czech Republic is increasing, and portable solar panels that can be used for camping are also on sale.
<Main solar panel products sold in the Czech Republic>
[Source: Heureka.cz, zbozi.cz, SVP solar, Ecoprodukt]
Some products are imported and sold through official distributors in the Czech Republic, and are also distributed through specialized companies that provide solutions from design to subsidy calculation and installation due to the characteristics of solar panels that are important to install. In addition, small and portable solar panels are distributed through online channels of wholesalers and retailers.
<Czech solar panel distributor and sales company>
[Source: each company website]
Tariff rate and certification
The tariff rate for Korean solar panels (based on HS code 8541.40) is 0% under the Korea-EU FTA (when a certified exporter is obtained and the rules of origin are met), and VAT is 21% when sold in the Czech Republic.
CE certification is essential for product distribution in the Czech and European markets, and CE certification for electrical equipment, including solar panels and inverters, allows manufacturers to conduct conformity assessments themselves. This requires testing to prove the quality and safety requirements of CE, such as electromagnetic compatibility and technical standards for low-voltage electrical equipment. In addition, additional international certifications related to solar modules such as IEC 61215 (PV module performance standard) and IEC 61730 (PV module stability standard) certification can be obtained.
implication
In a situation in which the expansion of new and renewable energy due to the transition to carbon neutrality is becoming essential, solar power generation with high growth potential is attracting more attention to reduce energy dependence on Russia, and the solar panel market is also expected to continue to grow. In addition, the expansion of solar power generation is expected to gain more momentum as various solar power generation support will be provided by 2030 through the Modernization Fund, New Green Savings Program, and EU Fund Management Program for 2021-2027. On the other hand, since Chinese companies with price competitiveness are improving their technology and preoccupying the global solar power market, it seems necessary for Korean companies to make efforts to develop high-efficiency products and new technologies to enter the Czech and European markets. It is expected that it will be advantageous to enter the market through cooperation with a networked professional distributor or a heating system installer.
Source: Czech Photovoltaic Association, Czech Statistics Korea, EU Commission, European Photovoltaic Association, hn.cz, ceskenoviny.cz and KOTRA Prague Trade Center