Solar lawsuits against state stall

Solar investors have yet to begin filing what was expected to be a deluge of legal proceedings against the government over the solar-tax amendment, which went into effect Jan. 1. Two solar energy investors, Voltaic Network of Germany and Radiance Energy Holding of Luxembourg, told website CzechPosition.cz they have informed authorities of their complaint, the necessary first step for moving toward actual arbitration. However, it appears the firms in fact failed to file with the correct ministry.

"Sometimes the news that leaks to the media is more about attracting the attention of potential clients," Jan Hlaváč, spokesman for CzePho, told The Prague Post. He added that most investors are awaiting a Constitutional Court decision on the amendment before filing notices.

A representative for the two companies told the website that notices had been sent to several ministries, but not to the Finance Ministry, the authority in charge of any arbitration. The Finance Ministry told The Prague Post that, as of April 11, it had yet to receive any notices.

The complaints emerged after the country first heavily subsidized solar investments, then faced a soaring subsidy bill when the incentives proved too effective. To mitigate the costs caused by the solar boom, the state passed an amendment that took effect Jan. 1 that taxed and discouraged projects once the subsidy bill became too high and threatened energy prices, according to the government and certain energy companies.

The amendment charged a three-year levy on feed-in tariff (FIT) revenues paid to solar investors who commissioned solar plants with capacities exceeding 30 kilowatt hours in 2009 and 2010. The tax rate was set at 26 percent for FIT for selling power to the grid and 28 percent for green-bonus revenues for electricity consumed at its production site.

Claire Compton can be reached at
ccompton@praguepost.com