Solar investors threaten lawsuits over tax proposal

Investors in solar energy are threatening lawsuits if the state goes ahead with a planned withholding tax intended to reduce electricity prices next year. According to the Czech Photovoltaic Industry Association, the measure will harm 1,450 firms and generate lawsuits of 260 billion crowns, ultimately costing the state 168 billion more than it will receive from the tax. The Ministry of Industry, however, is standing by the plan, saying it should return the profitability of solar investments within 15 years. The government hopes the 26% tax should keep energy price rises to 5.5% for both households and businesses. The expense of solar energy production is blamed for the increases, which were initially expected to reach up to 20%.