Austria to Abolish VAT on PV Systems Below 35 kWp in 2024
The future is looking bright for those in Austria who are looking to go solar. Starting in 2024, the country will no longer impose value-added tax (VAT) on private photovoltaic (PV) systems. This means that the VAT will be reduced to 0% and will apply to all PV systems with an output of 35 kilowatts (kW) or less. This is a significant development that will not only benefit individual citizens, but also the country's efforts to combat climate change.
The Austrian government's decision to abolish VAT on PV systems is part of the country’s climate strategy, which has set a target of reaching net-zero greenhouse gas emissions by 2040. The move is also expected to encourage more citizens to install solar panels, which would further reduce the country's reliance on fossil fuels. This, in turn, would help Austria to achieve its goal of being a carbon-free society.
The impact of the VAT reduction would be felt across the country. The majority of solar installations in Austria fall below the 35 kW threshold, which means that most private households and small businesses would benefit from the policy change. For instance, the cost of a typical 5 kW PV system for a household would decrease by around 1,500 euros due to the zero VAT rate.
The abolition of VAT on PV systems is a significant move that will have far-reaching consequences. Experts predict that the policy change will lead to an increased demand for solar panels, which would, in turn, create new jobs in the renewable energy sector. It could also reduce peak power demand from the grid, as more households and businesses would generate their own electricity from solar panels. This would reduce the pressure on the energy grid, making it more stable and resilient.
The VAT reduction could also reduce payback time for investments in PV systems, which would make them more affordable for lower-income households. Furthermore, it could encourage homeowners to invest in battery storage systems, which would enable them to store excess electricity generated by their solar panels for use later and further decrease reliance on the grid.
In summary, Austria's decision to abolish VAT on PV systems below 35 kWp is a significant milestone in the country's transition towards a carbon-free society. The policy change will benefit private households, small businesses, and the renewable energy sector. It is expected to boost demand for solar panels, create new jobs, reduce peak power demand from the grid, and encourage investments in battery storage systems. Overall, the abolition of VAT on PV systems is a positive development that will contribute to Austria's climate goals and the global shift towards renewable energy.