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  • Service: Tax
  • Type: Regulatory update
  • Date: 10/8/2013

Poland 

Taxes and Incentives
Poland Taxes and incentives for renewable energy KPMG Global Energy & Natural Resources.

Support schemes

Investment and other subsidies


  • Support schemes are applicable for solar, wind, geothermal, hydro, biomaterial and offshore technologies.
  • Renewable energy is exempt from excise tax.
  • In some cases solar photovoltaic modules cannot be subject to real estate tax as other constructions. (The planned act on renewable energy sources might provide otherwise.)
  • Agriculture tax payers may claim a refund of investment costs if the investment relates to renewable energy (up to 25 percent).
  • Subsidies and grants from the EU Structural Fund in Poland or other domestic institutions (for example, the National Fund of Environmental Protection and Water Management).

Currently the following sources of financing for renewable energy projects are available:


  • The National Fund of Environmental Protection and Water Management (NFEPWM) has announced a schedule of application rounds for investments related to environmental protection.
  • Green Investment Scheme (GIS) Part 4 – Construction and reconstruction of electricity networks for connecting renewable wind energy sources):
    • An application round under GIS Part 4 is planned for November. The total budget of the program amounts to Polish Zloty (PLN) 400 million.
    • Eligible projects are those with investment expenditures above PLN8 million, involving the construction or reconstruction of electricity networks in order to enable the connection of entities producing renewable wind energy to the National Electric Power System (NEPS).
    • Priority will be given to projects implemented in areas with a low 110 kV network density and with documented readiness for implementation of the undertaking.
    • Grants include PLN200 for each kW of connected power from renewable wind energy sources but not more than 40 percent of eligible investment costs.

As of 2013, companies in certain provinces will have the opportunity to apply for co-financing to support the construction of installations designed to produce energy from renewable sources. The above incentives will be applicable to smaller renewable energy projects under the Regional Operational Programs.

Operating subsidies

Green certificate system


Remuneration for renewable energy produced: the average market price of PLN201.36/MWh for the last year (2012) plus the market value of green certificate (certificate of origin) granted by the Energy Regulatory Office.

Quota obligation

Rates (2013): 12 percent of all energy produced (floors relate to all types of renewable energy). The quota is increasing in stages and will reach 13 percent in 2014 to 20 percent in 2021.

Additional information

Legal basis: The Act of Energy Law enacted on 10 April 1997 and the respective decrees from the Ministry of Economy.


The Ministry of Economy announced recently an act regarding renewable energy sources which establishes under Polish law the provisions of Directive 2009/28/WE. According to this act, the level of support for renewable energy will differ depending on the source of renewable energy. The highest support will be provided for photovoltaic installations with the power productivity exceeding 100 kW.


Administrative procedures: Business activity in the area of production of renewable energy is a licensed activity and requires a permit granted by the president of Energy Regulatory Office. Such a permit can be sought by an entity that meets requirements specified in the Energy Law, especially the ability to provide the financial, organizational and technical resources required to perform the licensed activity. As a rule, permission is given for the fixed term but not longer than 50 years.


Grid access: Priority access is granted over nonrenewable electricity producers. The costs of connecting to the electricity grid are determined by the actual costs incurred to construct the line. Those costs may be partially refunded to the investor, depending on the year and production capacity.


Green certificates scheme: Electricity producers may apply to the president of Energy Regulatory Office for green certificates (also known as certificates of origin), if they have produced renewable energy or if they are required to pay substitute fees calculated in line with the energy law. The green certificates are similar to securities; they are transferable and tradable on the regulated market (for example, the Polish Power Exchange) or within the over-the-counter market.


Sale: Electricity distributors have a legal obligation to acquire a certain amount of renewable energy generated in Poland. For the year of 2013, the above percentage limit of renewable energy will amount to 12 percent. Otherwise, the electricity distributor is obliged to buy the missing amount of renewable energy (by means of green certificates) on the market. The prices of renewable energy have been determined based on average prices of energy in the previous year. (The amount for 2012 was PLN201.36 /MWh). The renewable electricity producers have priority over other producers with regards to the distribution of produced energy.

 

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