Poland PV history and net-worth
The history of the Polish solar industry dates back to the 1970s. When the country began building its first solar thermal power plants.
However, the development of the solar industry in Poland was slow and limited until the early 2000s. Then the country’s energy market was liberalized, allowing private companies to invest in renewable energy.
In 2005, the Polish government introduced a feed-in tariff (FIT) scheme to incentivize the development of renewable energy projects, including solar. This scheme guaranteed a fixed price for electricity generated from renewable sources, providing a stable source of revenue for investors. The FIT scheme increased solar installations in Poland, particularly in the residential sector, where small rooftop systems became increasingly popular.
Despite this initial growth, the Polish solar industry faced significant challenges in the following years. The FIT scheme was often criticized for being too complex and expensive, leading to high consumer electricity prices. Additionally, changes to the FIT scheme in 2010 and 2013 resulted in a slowdown in solar investment and a need for more clarity for investors.
However, despite these challenges, the Polish solar industry began to gain momentum in the mid-2010s. In 2016, the government introduced a new FIT scheme for solar installations up to 1 MW. It offered a more streamlined and transparent process for investors. This new scheme led to a significant increase in solar installations in Poland, particularly in the commercial and industrial sectors.
In 2018, Poland’s largest solar plant was commissioned, a 42 MW installation in Cibórz, in western Poland. The plant was built by China-based photovoltaic module manufacturer Risen Energy. This solar investment marked a significant milestone for the Polish solar industry. The same year, the government launched a new tender scheme for solar projects over 1 MW in size. New rules aimed to incentivize investment in larger-scale solar projects further.
In 2020, Poland’s solar capacity reached 2.5 GW, up from just 300 MW in 2015.
While the residential sector still accounted for the majority of installations, there was a significant increase in commercial and industrial solar plants. Those new investments accounted for around one-third of new solar capacity in 2020.
Looking ahead, the future of the Polish solar industry looks promising. The government has set ambitious targets for renewable energy deployment. They include a goal of reaching 23% of electricity from renewable sources by 2030. To achieve this target, the energy ministry has introduced a range of new policies. They include a revised tender scheme for larger projects and tax incentives for businesses investing in renewable energy. In addition, the falling costs of solar technology are also likely to drive further growth in the market. We clearly see solar power becoming increasingly competitive with fossil fuels.
However, there are still challenges that the Polish solar industry must overcome. For example, the grid infrastructure in Poland needs to be updated. Furthermore must be designed to handle large amounts of intermittent renewable energy. Additionally, the permitting process for solar projects can be lengthy and complicated, deterring investment. Nonetheless, the potential benefits of solar power for Poland’s energy mix and economy are clear.
The Polish solar market was estimated to be worth around €2.6 billion (USD 3.1 billion) in 2018 and was expected to continue growing rapidly in the coming years. The market has seen a significant increase in investment in recent years. With a total of €1.5 billion (USD 1.8 billion) invested in solar projects in Poland between 2018 and 2020. Poland PV history and net-worth
Most of this investment has come from foreign companies. Mainly from Germany, Poland’s largest trading partner with a well-established solar industry.
The value of the Polish solar market is likely to have continued growing since then, given the factors I outlined earlier. The market is expected to be driven primarily by investments in commercial and industrial solar projects. They can of course potentially deliver significant cost savings for businesses in the long term. Additionally, as the costs of solar technology continue to fall, likely, more homeowners will also invest in rooftop solar panels, further driving growth in the market.
If you are interested in investing in photovoltaic farms in Poland, don’t hesitate to get in touch with us at +48 797 897 895 or biuro@lighthief.com
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