In recent times, the Polish solar market has experienced significant legislative changes that have both intrigued and concerned investors. The implementation of a price cap has been one of the central discussions within the renewable energy sector. This article explores the recent legislative developments in the Polish solar market, focusing on the price cap, and compares Poland’s solar investment landscape to other Central and Eastern European (CEE) countries.
The Price Cap in the Polish Solar Market
One of the most notable legislative changes in the Polish solar market has been the introduction of a price cap to regulate electricity prices from solar installations. Its main objective is to protect consumers from volatile electricity prices and ensure more stable energy costs in the long run.
However, the price cap has stirred debate. Critics argue that it may dampen growth by reducing investor returns and interest. Supporters, on the other hand, believe it brings market predictability and supports broader renewable adoption.
The European Investment Bank recently agreed to provide €400 million in financing to modernize Poland’s distribution network through 2025. NICL has engaged grid operators to explore solutions such as battery storage systems, but progress has been limited. The issue seems regional rather than national.
The Polish PV market has grown far faster than grid operators anticipated. According to SolarPower Europe, Poland installed 4.9 GW of solar PV capacity in 2022—third in Europe after Germany and Spain. In November 2019, the country had around 2 GW of solar capacity; by November 2022, this had grown to nearly 12 GW.
How Poland Compares with Other CEE Leaders in PV Development
Hungary
Hungary has seen major progress in solar energy development, supported by government incentives, feed-in tariffs, and streamlined administrative processes. By the end of 2022, Hungary had over 4 GW of installed solar PV capacity—about 12.5% of its electricity mix. In 2023, the Energy Minister projected that the country’s 6 GW target for 2030 could be exceeded by double.
Czech Republic
Once a regional leader, the Czech Republic’s solar industry declined after drastic cuts to feed-in tariffs. However, the country has shown signs of revival with a renewed focus on renewables and more stable investment conditions.
Romania
Romania has substantial solar potential. Its installed PV capacity grew from 29 MW in 2012 to 1.7 GW in 2022. Positive regulatory changes between 2020 and 2022 have fueled growth, particularly in net metering and self-consumption setups. As of early 2023, over 16.7 GW of PV projects were in the permitting pipeline.
Slovakia
Slovakia is gradually embracing solar. While it offers feed-in tariffs, retroactive changes have dented investor confidence. Still, continued government support is expected to sustain market growth.