Germany Reduce PV Tax For Energy Crisis
Oct 18, 2022
The German government continues to respond to the energy crisis with tax breaks and support for small-scale photovoltaics. This time, the tax break is aimed at supporting PV systems up to 30kw.
Starting in early 2023, any photovoltaic system operating on a single-family home or commercial property with an output of up to 30kw will no longer have to pay income tax on the electricity generated.
The exemption also applies to residential users and mixed-use properties with 15kw PV systems, according to the German government, which approved the measure in the 2022 annual tax bill.
In addition, the import procurement and installation of PV systems and energy storage systems will no longer be subject to value added tax (VAT). A prerequisite for doing so is that the system is installed on or near private homes and apartments, as well as on public buildings and other structures used for public interest activities. The exemption will be available to owners of self-use PV systems that generate no more than 30 megawatt-hours of electricity per year, as long as their installed capacity does not exceed 30 kilowatts.
