Sofia, Bulgaria – The Bulgarian Association of Photovoltaic, Energy Storage and Hydrogen (APSTE) has issued a stark warning that the nation's exceptionally high state fees on photovoltaic (PV) panels and energy storage batteries are stifling the crucial decrease in electricity prices and jeopardizing significant clean energy investments. These fees, which APSTE reports are five to ten times higher than the European Union average, do not reflect actual recycling costs and are artificially inflating the cost of renewable energy projects.

The product fee for solar panels currently stands at BGN 0.90 (EUR 0.46) per kilogram, a rate over eleven times higher than the equivalent levy in the Netherlands. This substantial fee increases the price of solar panels by approximately 35%, consequently raising the overall cost of turnkey solar power plants by about 10%, according to APSTE. A similar detrimental impact is observed for lithium-ion batteries, where a fee of BGN 5.50 (EUR 2.81) per kilogram makes batteries nearly 19% more expensive. This added expense poses a significant challenge, as it was not factored into the business models of projects financed under Bulgaria's National Recovery and Resilience Plan (NRRP).

The association emphasized that this regulatory burden threatens the profitability and deployment of 9,000 MWh of critical energy storage capacity slated to come online by the end of 2026. This capacity is a cornerstone of Bulgaria's energy reform efforts. Notably, in April, the Ministry of Energy approved EUR 587 million in subsidies for 82 standalone battery storage projects, totaling 9.71 GWh in capacity, as part of the NRRP. The high fees directly undermine the viability of these incentivized projects.

Nikola Gazdov, Chairman of APSTE, criticized the government's policy, stating, "It is absurd that the state artificially increases the price of a panel by 35% and that of batteries by 19% – just when solar power plants and storage systems are starting to provide a permanently low price for electricity." Gazdov further highlighted the lack of economic logic for Bulgaria's recycling fees to be ten times higher than those in Central and Western Europe, drawing parallels to a similar situation in Croatia where E.ON Croatia raised concerns over high waste fees on solar panels.

APSTE underscored that Bulgaria already covers a significant portion of its daily electricity consumption with solar energy, which has driven wholesale power prices to exceptionally low levels. Battery energy storage systems (BESS) are essential for extending the benefit of cheap solar electricity to evening peak consumption periods, when prices are traditionally higher. At a time when Bulgarian households and businesses urgently require affordable energy, APSTE argues that outdated regulations with unreasonably high fees are impeding technologies that are proven to lower energy bills. The association has formally called on the government to urgently revise the regulation on product taxes, advocating for an alignment with average EU levels, and has submitted a letter to the Council of Ministers, the Ministry of Energy, and the Ministry of Environment and Water.