CMS CEE Expert Guide to Solar Panel Installation in Poland

In Poland, a rooftop PV system is usually operated in the auto-consumption model, in two main variants:

a) the PV system is developed, operated and owned by the building owner/possessor (usually with the engagement of third-party contractors); or

b) the PV system is developed and owned by a third party, who then leases the PV system to the building owner/possessor. This model is customarily called energy-as-a-service.

The surplus production can be sold to the grid, based on the electricity generation licence or entry to the small RES producers register (MIOZE).

In September 2023, the Energy Law in Poland was amended to allow for the use of the “electricity direct line”. Under the new laws, rooftop PV systems can also operate in a model where a third party develops and operates the PV system and sells the electricity to the building owner/possessor via a Power Purchase Agreement (PPA), through the direct line, i.e. outside the public electricity grid. In this model, the third-party developer needs to secure the right to use the roof in order to install and operate the PV system. This is usually done by establishing a lease over the property’s roof. The registration of a lease in the Land and Mortgage register is optional and not commonly done.

In this model, called the direct line model or direct sales model, the surplus electricity can be sold by the customer (building owner/possessor) to the grid, based on the electricity trading licence.

This model has gained the interest of investors, although, due to the regulation being fairly new, it has not been commonly implemented yet.

The Energy Law also allows for the creation of a local distribution network in the building, through which the electricity from the PV system can be transported to the entities consuming electricity in that building (such as the tenants) (local DSO model). The local distribution network may be operated by the building owner, PV system owner or a third party. The operation of the local distribution network requires a legal title to the electricity infrastructure to be obtained, as well as a distribution licence and appointment as a distribution system operator (DSO). This model has been implemented in practice, although it is not very common.

Regarding the respective Polish legal regulations, for the location of PV installations the standard permits required to be obtained in the investment process include in general:

1. zoning permit (unless a local zoning plan is in place); and
2. a building permit or the notification to the relevant building supervisory authority.

For the record, under current legislation the location of a rooftop PV system does not require an environmental permit. A permit for use is usually not required for the rooftop PV system itself.

Currently, a local zoning plan allowing for a building to be built also automatically permits the installation of rooftop PV systems, as well as micro-installations. This holds true even where the land is designated for purposes other than production, unless specific provisions in the local zoning plan prohibit such installations. If a local zoning plan is not in place, depending on the specific circumstances and scale of the investment, a zoning permit may be required to instal a rooftop PV system.

Concerning the building permit or notification of construction works, please note that in general, none of the above is required for the installation of PV panels with an installed capacity up to 150 kW (however, a rooftop PV system exceeding 6.5 kW must formally comply with fire protection requirements, what involves coordinating with a fire protection expert for device design and notifying the State Fire Service authorities). A building permit is required for rooftop PV systems with a capacity greater than 150 kW, and regardless the capacity of the PV installation if:

• the installation of a PV requires the extension or conversion of the building (and these works require a building permit);
• the installation of a PV takes place near or on a building listed in the register of historic buildings;
• the installation of a PV constitutes a project requiring an environmental or Natura 2000 impact assessment.

In certain instances, a building permit is not required, but it is sufficient to submit a construction notification to the competent authorities. A notification to the authorities will be required regardless of the capacity of the PV installation if:

• the height of the PV installation on the building exceeds three meters;
• the installation takes place on a site listed in the register of historic buildings.

From the point of view of Energy Law, the key competent authorities/entities are:

• President of the Energy Regulatory Authority (ERA), the main regulatory authority in the energy sector, which issues electricity generation, distribution and trading licences, makes entries in the register of small RES producers (MIOZE) and to the direct lines register;
• distribution system operators, which are companies appointed by the President of the ERA to distribute electricity in certain regions. They issue grid connection conditions, take part in the direct line approval and technical acceptance of PV systems;
• Towarowa Giełda Energii S.A. (TGE), the Polish Power Exchange, which holds the register of guarantees of origin. 

Regarding construction matters, in general the relevant authority is the district governor (starosta).

Various regulatory requirements need to be met to set up rooftop PV systems. The most important from the energy regulatory perspective are:

1. entry in the register of small RES producers (MIOZE), allowing electricity to be generated in a PV system with a capacity higher than 50 kW but not higher than 1 MW, connected to the grid at voltage lower than 110 kV (small RES installation);
2. electricity generation licence, allowing electricity to be generated for PV systems other than micro-installations and small RES installations; No generation licence/entry in the MIOZE register is required for micro-installations with a capacity below 50 kW connected to the grid at voltage lower than 110 kV, or in the case of 100% self-consumption, with no sale of electricity to the grid or any third party.
3. electricity distribution licence allowing electricity to be distributed in the local DSO model;
4. electricity trading licence allowing the building owner/possessor to sell surplus electricity to the grid in the direct line model;
5. entry in the direct line register allowing the direct line in the direct line model.

All these licences and authorisations are granted by the President of the ERA.

Other authorisations may include updates/amendments to the grid connection conditions and grid connection agreement.

Producers of electricity from renewable energy sources have priority for connection to the transmission and distribution grid, subject to the existence of technical and economic conditions (available grid capacity or economic viability of grid expansion). This basically gives RES installations priority over conventional sources, but the grid capacity is not guaranteed.

The lack of available grid capacity is a common problem in the RES market in Poland.

In most cases, obtaining the relevant permits for the rooftop PV systems may take a few months. 

For a zoning permit, the statutory deadline for the authority to issue a decision is 90 days.

Regarding a building permit, the relevant authority should issue a decision in 65 days. 

However, if the investment requires the adoption or adjustment of a local zoning plan, the timeframe for processing such application may take several months up to a few years.

The legal process is fairly straightforward and the timing usually depends on the commercial positions of the parties during the negotiation of the lease agreement. To establish long-term lease or tenancy, only an agreement must be signed.

In the event of a change of ownership of the property, the rights and obligations under the lease will pass to the new owner. The new owner can then terminate the agreement, but the termination right does not apply if the lease agreement is concluded in writing and for a specific period of time, with a certified date (e.g. notarised signatures), and the object of the lease has been handed over to the lessee.

The treatment of the PV system at the end of the lease is usually expressly agreed in the lease. It is quite common in energy-as-a-service (PV lease) models that PV systems are transferred to the building owner/possessor for a residual or symbolic value. If nothing else is stipulated in the contract, the PV system should be removed from the property.

There are no specific statutory requirements in this respect. Any sharing of costs or benefits depends on the mutual agreement of the parties.

There is currently no such regulation in place in Poland. However, in accordance with the Construction Law, in new buildings and existing buildings undergoing reconstruction or an energy efficiency improvement project, which are used by the public finance sector, equipment using energy generated from renewable energy sources and enabling the generation of energy from such sources is recommended, as well as technologies aimed at constructing buildings with high energy performance.

The most common obstacle to the development of rooftop or any other PV plant is associated with securing sufficient grid connection capacity with the distribution system operator (if the project involves the export of surplus electricity to the grid).

In the direct line model, there are regulatory constraints on sale of the surplus electricity to the grid. Such sale can only be done by the customer (building owner/possessor) to the grid, based on an electricity trading licence. The trading licence requirement is generally seen on the market as excessive.

In practice, the PV systems are quite often limited to auto-consumption capacities with no export to the grid.

There are (subsidy) support schemes. For electricity exported to the grid, the RES auction scheme may apply in accordance with the Renewable Energy Sources Act.

There is also fairly large variety of public subsidy funds dedicated to financing of the RES projects (such as programmes in the European Funds for Infrastructure, Climate, Environment 2021-2027, European Funds for a Modern Economy, RES Grant and various regional aid schemes managed by the Provincial Funds for Environmental Protection and Water Management). The subsidy programmes and rules for qualifying often vary, so it is recommended to check the status at the outset of the development of each project.