Leaked: Solar stop to end soon in Hungary

From the 1st of October, the Hungarian government is expected to reintroduce the possibility of feeding electricity back into the grid for small household-scale solar power plants in certain areas. According to the Hungarian Solar Panel Association president, Ernő Kiss, last year over 200,000 people indicated that they wanted solar panels. However, the actual number of applications was only 30,000.

Previous events

ATV reported that there was a big rush for solar panels last August when the Hungarian government announced the limitation of cutting utility costs. The demand for solar panels was higher than what the network could accommodate at that moment. Therefore, the government has introduced a feed-in freeze concerning small household-scale solar panels.

From the 1st of November, newly installed household solar panel owners did not have the possibility of feeding electricity back into the grid. Despite that, their energy expenses were equal to zero, at least. The provisional regulation is still in force. But the commitment to the European Union requires the moratorium on solar panels to be lifted by the 31st of December 2024. József Balogh, energy expert, told ATV:

That is good news, but what we really need is for wind farm licensing to start again, so that we can rebalance the renewable generation structure and grid development has to go on and on, either with Hungarian or EU money.

Shady business?

Hungarian Solar Panel Association president, Ernő Kiss, said that there were no technical obstacles that would prohibit feeding electricity back into the grid. According to Mr Kiss’ information, the government will reintroduce the possibility of feeding back on the 1st of October in certain areas. He added that over 200,000 people have handed in demands for solar panels. However, most of that was not real. Some people have changed their minds over time, while some have handed in their demands twice.

The Hungarian Solar Panel Association estimates roughly 30,000 demands to be real. Yet construction work has not even started. Meanwhile, distribution networks have been closed down, leaving the sector in a difficult situation. The number of household-scale solar panel installations has dropped drastically, nearing zero. According to Ernő Kiss, due to the lack of installation work, many have lost their jobs in the sector.

Zoltán Varju, an opposition politician, thinks that this situation only favours the oligarchs with a stake in gas-fired power plants. These companies will benefit from the solar panel freeze, while families are in a tough position. In addition, the solar plant expansion would be an enormous step for Hungary to reach carbon neutrality by the year 2050. The opposition politician thinks that the current government is not working hard enough to make the country less dependent on gas.

What does the future hold for solar panels?

The Hungarian Energy and Public Utility Regulatory Authority will prepare a proposal to lift the temporary restriction on feed-in for the first time by the end of August. Meanwhile, the Hungarian government is financially supporting investments in distribution companies and high-voltage grid operators.