In 2023, a new government was elected in Warsaw, putting an end to the decade long hesitation of the conservatives. The obstacles are many, too: A power grid that cannot cope with the burdens of decentralized supply systems and bureaucracy are slowing down the pace of pv market expansion.
No energy source in Poland is growing as fast as photovoltaics. The total installed power rose to 12.1 GW in 2022. This significantly exceeded the self-imposed target of 7 GW. A further 4.6 GW were installed in 2023. By 2027, a total of 27 GW of photovoltaic power is to be connected to the grid in Poland.
More news and insigts about the Polish market
Growth in solar parks and large rooftop systems
The state transmission system operator PSE (Polskie Sieci Elektroenergetyczne) expects that photovoltaic systems with a total power of 20 GW will be connected to the grid between 2023 and 2032. Data from the Polish grid regulator URE (Urząd Regulacji Energetyki) confirm these prospects. The installed power of large-scale pv systems will therefore increase by more than 70 times between 2022 and 2036.
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Financial support for pv
Since April 2023, up to 12,300 euros per project have been available for family homes and small businesses in Poland. Before that, the maximum subsidy was 6,600 euros. The feed-in tariff for prosumers, i.e. producers and consumers of solar power, has been based on the prices on the electricity exchange since April 2022. Before that, private individuals could obtain up to 80 percent of the amount of electricity they fed into the public grid from the grid free of charge.
The "Moje Prąd" (My Electricity) program was launched in Poland on September 2nd. The application period runs from September 2nd, 2024 to December 20th, 2024, or until the program budget of 400 million zloty (around 93.7 million euros) is exhausted.
Strategic partnership of Menlo Electric and Sungrow
Support for family houses and farmers
Germany Trade & Invest (GTAI), the federal economic development agency, reports that the state-owned bank BGK (Bank Gospodarstwa Krajowego) is providing support for the construction of photovoltaic systems on apartment building of up to 50 percent of the investment costs. The feed-in conditions are also said to be more profitable than for photovoltaic systems on family houses.
According to GTAI there are low-interest loans for companies that install pv on their roofs to generate their own electricity. The Energy for the Village (Energia dla wsi) program, in turn, supports farmers in financing photovoltaic installations.
Central and Eastern Europe increasingly in the solar gigawatt class
PPA and CPPA for large installations
Direct supply contracts between energy producers and commercial customers have been difficult in Poland due to the lack of a legal framework. However, the government has obviously made improvements, as the topic was regularly an integral part of the pv system concept in our background discussions with companies that develop open-space and rooftop systems in Poland.
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Modernization of the power grid needed
The consulting firm "Polityka Insight's" has identified the Polish power grid as a hurdle to the further expansion of solar energy. Polityka Insight's reports that more than three quarters of all medium and high voltage lines are older than 25 years. Distribution network operators are therefore increasingly refusing to connect new power plants or reducing the originally planned output.
The government has recognized the weak point and is working on changes to the law that will speed up the planning processes for network expansion and enable direct lines between power plants and consumers. A total of 24 billion euros are to be invested in new lines between 2020 and 2030.
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Decline in demand for small systems
The demand for micro systems cooled noticeably in 2024. After a boom in 2022, during which demand could not be met, demand cooled sharply in mid-2023. In 2024, demand continued to decline sharply. Wholesalers in particular who created new storage capacity in 2023 and filled it to the brim are now sitting on their goods, with component prices continuing to fall.
Market participants attribute the reasons for the decline in demand, especially for small systems, to increased interest rates, rising living costs and general uncertainty. Companies that have been in the component trade for a longer time are relaxed about the change and interpret the fluctuation as a normal cycle in the trading business.
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Demand for large-scale systems is increasing
The situation is completely different with large roof systems and solar parks. PV is by far the cheapest form of energy in Poland today, with a price difference of around five euro cents per kilowatt hour compared to grid electricity. The demand is correspondingly high and further investments are being made in installations. The expansion is currently limited primarily by limited grid connection capacities.
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Good prospects for the market
The Coordinating Council for the Development of the Photovoltaic Industry declared in June 2024 that increased use of solar power energy has a positive effect on the country's energy security. Photovoltaics also have a positive impact on the economy and create secure jobs with good future prospects.
Representatives of the Polish Ministry of Climate and Environment, who also attended the meeting, pledged to do everything possible to make photovoltaics available across the country. Administrative hurdles are to be removed, and the conversion of industrial and other brownfield sites into photovoltaic sites is to be simplified.
Building a new energy mix
Domestic industry is to be given greater support in the transition to solar power energy. A strong photovoltaic industry is to be created in Poland, with new jobs and interesting opportunities for investors. The expansion of grid-friendly storage capacity is to be pushed forward.
The Polish Minister for Climate and Environment, Paulina Hennig-Kloska, announced in July 2024: “We are building a new energy mix. We are creating good laws, supporting prosumers and removing obstacles to the development of renewable energy sources. We are increasing investments in smart grids."
Manfred Gorgus
