Czech removes Tax Holiday to Further Deflate the Green Energy Bubble

Czech Republic has seen a huge Solar Boom due to an ill designed Feed in Tariff Scheme for Green Energy.This has led to a huge mushrooming of Solar Installations driven by  30% Plus Annual Returns for Renewable Energy Investors.The Czech citizens have to now bear the burden of this ill conceived subsidy scheme with electricity rates expected to rise between 15-25% in 2011.The higher costs of Solar Energy will be passed onto Electricity Consumers.The Czech Government has already decided to cut FIT rates for Solar by 50% in 2011 with strict caps which will surely end the Massive Bubble in Solar Energy.The Government is now trying to further strangle the growth of Renewables through removal of a 5 year tax holiday on new installations.

Czech is a Poster Boy of how not to implement a Feed in Tariff Scheme.While other countries like Spain,Greece have also faced Solar Booms,the Czech Bubble compared to the size of its Economy has been spectacular.The removal of Tax Benefits will further lower the returns for Green Investors which should probably eliminate the make the Czech Renewable Market next year.

New Czech proposal takes aim at solar boom – Reuters

The Czech Finance Ministry has proposed a new law that would eliminate the five-year tax break for new investments into renewable energy in a bid to curb booming solar projects in the country.

The law, which the ministry has proposed to the centre-right government, would only apply to new projects and not to those already approved. The measure would take effect on January 1, 2011.