The Photovoltaic Market in Poland: Prosumers, Micro Installations, and Growing Capacity

Photovoltaic market in Poland

 

According to the Institute of Renewable Energy, prosumers account for about 74% of installed photovoltaic capacity in Poland. Small backyard installations have grown in Poland similar to those in Germany, Australia and California. However, in no country in the world do micro installations have such a large share of the RES and energy market as in Poland. In 2022, interest in own micro PV installation declined, but less than expected. This was influenced by the change in the energy billing system from net-metering to net-billing.

 

In addition, in 2022 there were other macroeconomic phenomena holding back the prosumer market, like fossil fuel subsidies and a freeze on electricity prices, stagnation in housing construction and a decline in the number of construction projects started. The number of prosumer photovoltaic installations, according to ERO data, at the end of 2022 was 1.2mn units (+41% y/y) with an estimated capacity of over 9.3 GW. Development in this market segment was initiated by subsidy schemes and the net-metering energy surplus billing system.

 

The most important programs are "My Electricity," funds from the Regional Operational Programs and the Infrastructure and Environment Operational Program, and "Clean Air." These programs reduce the cost of building the installation and reduce the payback period.

 

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For business prosumers, the high cost of electricity in the B tariff has clearly improved the profitability of PV installations. According to an analysis by the Institute of Renewable Energy, despite the lack of subsidies from the "My Electricity" program (for micro installations of more than 10 kW) or "Clean Air" program for 35-50MW installations, IRRs can reach close to 35-40%.

 

According to an analysis of the Institute of Renewable Energy database, there are currently 3404 professional PV installations in Poland. The data includes large farms with capacities above 1 MW, as well as those now included in the definition of small installations - farms with capacities below 1 MW, also taking into account installations at business prosumers. PV farms account for 26% of installed PV capacity, with large farms above 50 MW accounting for 59%. In 2022, the sector saw record PV capacity growth of 2.04 GW, including 0.347 GW in large farms.