Solar Striptease: New Czech Regulation Risks Billions in Economic Damage, AAU Research Finds

A new study authored by economist Petr Bartoň, casts serious doubt on the economic logic behind Lex OZE III—an amendment to the Czech Act on Supported Energy Sources enacted in 2025. The regulation introduces strict individual return-on-investment controls for solar energy producers, with the stated aim of reducing public subsidies and closing a significant budget gap. However, the research finds that the policy could impose more than CZK 5 billion in administrative, financial, and systemic costs—far outweighing any realistic fiscal savings.

The report argues that the regulation places a disproportionate burden on small operators, disrupts investor confidence in the Czech energy market, and risks slowing progress toward the country’s renewable energy targets. It further warns that the new compliance requirements could trigger higher electricity prices, reduced foreign investment, and even legal challenges from international investors.

Read the full study here.