Publication date: 22.07.2024
Vitaliy Kolomiets is an experienced lawyer specializing in assisting with obtaining residence permits and residence cards in Poland. He has in-depth knowledge of Polish law and many years of experience in migration matters. He has over 5 years of experience.
Solar power plants in Poland — how to start a business?
Green energy is a promising business direction. After changes in legislation in 2019, Poland has become the most profitable market in the EU. In fact, investors are queuing up to produce solar energy in Poland. Today, investments in solar power plants can be controversial, but let's talk about how to start a business in this area if you are determined to do so.
Features of the solar power plant market in Poland
In 2018, Poland produced only 4715 MW of electricity from solar plants, accounting for only 3% of total electricity production. This is three times less than Ukraine and 160 times less than Germany during the same period. Just a year after the legislative changes, Poland joined the "gigawatt" club. And in 2023, the country covered more than 20% of its needs through alternative energy.
The positive development of renewable energy is facilitated by factors such as:
- Reducing VAT for mini-PV plants — the government reduced it from 23% to 8% if the plant has a total capacity of up to 50 kW.
- Energy certificates have replaced "green tariffs," which is more advantageous in terms of "clean" energy.
- The net metering system — when access to Net Metering for business communities was expanded, demand increased.
- Quite high tariffs for traditional electricity. In Poland, there are complex algorithms for calculating the cost of 1 kW.
An investment in a solar power plant can quickly bring profit — on average, they pay off in 5-7 years. The Polish market indeed offers good prospects for this direction. Transparent auctions for the sale of "clean" energy are held here, and land rental prices are affordable.
Solar power plants generally serve for 25-30 years. You can sell all the electricity, and demand for it is constantly growing due to the increasing overall electricity consumption.
Features of registering solar power plants for business and personal needs
In Poland, there is no "green tariff," meaning the state does not guarantee the purchase of electricity from PV plants. Instead, contractual principles apply. By law, PV plants are clearly distinguished by their purpose:
- For personal consumption (individuals);
- For further sale for profit (business).
In the first case, solar power plants are built near houses, on roofs, etc. Owners of such small PV plants (usually up to 50 kW) are not allowed to sell electricity. The generated electricity goes to the general grid, and if the plant supplies more electricity than the household consumes, the operator can take 20-30% of the surplus "for storage."
Private individuals are motivated by optimizing their own expenses. Building small PV plants does not require permits for construction works. After the plant is created, the owner negotiates with the operator about connecting to the general grid and distributing profits.
It is different if the business is building PV plants for further sale of electricity. The company must register as a business entity, obtain permits, and only then enter the market.
Setting up a business in the green energy sector
Businesses primarily build plants with a capacity of 50 kW or more. If the construction of PV plants is within 50-500 kW, the company is entered into the appropriate register. If the capacity exceeds this amount, a license to produce energy from renewable sources must be obtained.
Land for PV plant construction
Large PV plants are built on land. Then it is necessary to obtain rights to the land plot. Requirements for the plot include:
- Territory potential — not every part of Poland receives the same amount of sunlight. You can use the Solargis resource to choose.
- Area — it depends on the planned capacity of the PV plant. For example, if you plan to produce 1 MW of energy, the plot should be about 2 hectares.
- Soil quality — PV plants can only be built on land with infertile soil (categories IV-VI according to the Polish classification).
- Proximity to power lines — usually, it should be no more than 500 meters; otherwise, laying additional lines becomes unprofitable.
As a rule, the plot is not bought for building a PV plant but is leased long-term.
Permits
The PV plant can be built in a few months, but collecting the documents and permits will take about two years.
It is necessary to obtain an "environmental decision" (decyzja środowiskowa). It is issued by the environmental control authority, which allows building a production facility on a specific plot. The document takes 3 to 6 months to process.
After obtaining it, you can apply for building conditions for the PV plant. The application is submitted to the local government authority.
Next is the preparation of documents for applying for the conditions for connecting the PV plant to the operator's grid. The operator analyzes the situation and decides whether it is possible to build a PV plant on this plot. This takes about 5 months. The applicant must deposit 30 PLN/1 kW of PV plant capacity to the operator's account. So if you plan to produce 800 kW, the deposit will be 24,000 PLN. The conditions issued by the operator are valid for 2 years.
Is it worth investing in solar energy as a business?
Solar power plants as a business are a popular direction. But is it profitable? Preparing documents, finding a plot, obtaining permits, and participating in auctions for selling electricity — all this is complicated and time-consuming.
However, it is essential to understand your primary goal. Competing with traditional energy sources is challenging. Nevertheless, Poland is developing the renewable energy sector and creating favorable conditions for its growth.
You can invest in existing projects — you can buy shares in a business (tokens). But it is worth checking all the conditions and offers for the future investor.
At the same time, the development of PV plants opens another business niche — construction and installation of turnkey solar power plants. However, additional permits, such as SEP, are required for this.
Thus, solar power plants are a promising business. You can engage in it from A to Z, invest in other projects, or provide related services. For assistance with investing or other questions, you can always contact consultant.net.pl. Specialists will help you do everything correctly.
