Since the beginning of 2024, a VAT exemption for photovoltaic systems up to 35 kWp has been in effect in Austria. This temporary measure was originally intended to run until the end of 2025 and made the acquisition of solar systems significantly more attractive . Thanks to the zero tax rate, the usual 20% value-added tax on PV modules and installations was eliminated – this corresponds to an effective price saving of around 16.6% . Many private households and businesses utilized this simple and bureaucracy-free subsidy, which led to a veritable solar boom.
The Original 0% Regulation for Photovoltaic Systems
Solar modules on a house roof – Photovoltaic systems up to 35 kWp benefit from 0% VAT in 2024/25.
With the zero tax rate, photovoltaic products and their installation were exempted from VAT. This means that the tax rate was already set from 20% to 0% on the invoice. The invoice amount was thus automatically reduced by the otherwise due tax portion . An example: If a PV balcony power plant costs 1,000 € net, thanks to the exemption, one also pays 1,000 € (instead of 1,200 €) – thus saving 200 € compared to the normal case. This regulation was part of the Climate Promotion Package and was intended to promote investments in renewable energy. Especially for systems up to 35 kWp – typically private rooftop systems or balcony power plants – no VAT portion applied from 2024 up to and including 2025 . The uncomplicated relief ("0% bureaucracy") proved to be extremely popular and was utilized by thousands of households .
