Only 3 000 PLN in subsidies for photovoltaics as part of “Mój Prąd 3.0” programme

Contrary to previous announcements, subsidies under the “Mój Prąd 3.0” programme will not include energy storage facilities or EV charging stations. Subsidies will only include photovoltaics. The sum of the subsidy will also be lower by 2 000 PLN than previously announced. The change in perspective of the new subsidy is commented by Mr Michał Kitkowski, president of SunSol.

The next edition of the “Mój Prąd” programme will launch on 1 July. Michał Kitkowski, president of SunSol, summarises the previous editions and discusses the impact of the latest enrolment in the programme on the growth of the photovoltaics market and perspectives of the new subsidy.

Modified conditions of the latest edition of the “Mój Prąd 3.0” programme

Photovoltaics in Poland continues grow and has enjoyed considerable interest in recent years in particular.

According to the Deputy Minister of Climate and the Environment Mr Piotr Dziadzio prosumers, or persons involved in the energy production process who also consume the resource created, are currently responsible for 75% of installed power in photovoltaics; on the Polish market there are currently as many as 600 000 entities, which means that their number has grown by 1500% since 2015, when there were only 4 000 of them. By the end of April 2021 the total installed power of photovoltaics was 4.7 GW.

The increased interest in photovoltaic solutions can be largely attributed to the government programme entitled “Mój Prąd”. Accoring to the latest information confirmed by the The National Fund for Environmental Protection and Water Management the latest, third, edition of this programme will launch on 1 July 2021.

Contrary to previous announcements, this edition of the programme will not include energy storage facilities or EV charging stations; subsidies will only include photovoltaic installations. The sum of the subsidy will also be lower than in previous years and amount to 3 000 PLN, with the total sum dedicated to this programme being 534 million PLN.

Applications can be submitted from 1 July to 22 July 2021 or until the sum set aside for this project is exhausted. Costs incurred between 1 February 2020 and 31 December 2023 will be considered eligible.

Impact of previous editions on the development of household photovoltaics

According to Mr Michał Kitkowski, president of SunSol from Gdańsk, a company established in 2013 which designs and installs photovoltaic systems, the interest in the latest edition of the programme – Mój Prąd 3.0 – is considerable, although due to the planned amendment of the act on renewable energy sources numerous investors have decided to make investments even before the programme was launched. He believes that the previous edition of this programme was a milestone for the micro-scale implementation of photovoltaic systems in Poland.

“The previous edition of ‘Mój Prąd’, similar to the first one, was a driving factor for the sales of PV systems. However, even after it ended, sales remained high, which tells us that Polish photovoltaics now stands on its own two feet and has reached its maturity stage. We are currently waiting for subsidies for energy storage facilities which are already available in the West and which are being mentioned in government circles. According to the latest reports they are planned for inclusion in ‘Mój Prąd 4.0’,” says Michał Kitkowski. “However, this year, due to the amendment of the act on renewable energy sources, numerous investors (clients) decided to buy the panels now, before the third edition of ‘Mój Prąd’ launches. So far, approximately 80% of our individual clients have taken advantage of this programme,” he adds.

Top combination: Mój Prąd and thermal modernisation tax relief

Michał Kitkowski stresses that one of the options that can be combined with the “Mój Prąd” programme in order to reduce the investment’s cost is to take advantage of the thermal modernisation tax relief which became available even before the subsidy programme was announced and which is an equally popular method of financing.

“Thanks to the thermal modernisation tax relief, in the case of photovoltaic system cost of 50 000 PLN investors can deduct as much as 15 000 PLN from tax. There are also attractive credits and loans available on the market which can be helpful in such undertakings and achieving energy independence which is very important to our clients. More importantly, with a 5 kW system they can save up to 3 000 PLN per year,” adds Michał Kitkowski.

Will the change in the discount system increase investments in photovoltaics?

Amendment of the act on renewable energy sources which may come into force on 1 January 2022 (although the latest reports suggest it may happen a little later) and which will repeal, among other things, discount-based settlements, is yet another factor that increased interest in PV solutions.

In the following year, investors will be able to sell the energy generated at market prices and buy additional reserves for their own purposes at full price. Michał Kitkowski points out that this is the reason why the decision about purchasing a PV system should be made as soon as possible also because increased demand has significantly extended the investment lead time.

“After the amendment of the act on renewable energy sources was announced, the interest in our services increased by approximately 30-40 per cent. Clients who have been hesitating and putting the decision away, are now coming back,” says Michał Kitkowski. “Currently, the return on investment time is about 5-6 years. Once the new regulations become effective, this period will be extended to 7-8 years, and that’s why this year is the perfect moment to invest in PV solutions. The decision should be made as soon as possible, because lead times are longer and can take up to one month.”

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