Germany to remove tax hurdles to rooftop solar expansion

Sep 15, 2022 11:41 AM ET
  • The German federal government on Wednesday approved a draft regulation to remove tax as well as bureaucratic hurdles to the setup of small solar systems on domestic and commercial properties in a further effort to promote the expansion of renewable energy.
Germany to remove tax hurdles to rooftop solar expansion
Image: Bundesverband Solarwirtschaft (BSW)

The new amendments provide for the exemption of solar (PV) systems on single-family homes and also commercial properties of up to 30 kWp from an earnings tax. For multi-family and mixed-use structures, the exception will apply to solar plants of as much as 15 kWp per household or commercial system, but just as much as 100 kW per taxpayer.

Previously, the benefit used only to systems of up to 10 kWp.

In addition, the abolition of the supposed 70% rule for planetary systems of as much as 25 kW planned for January 1, 2023, will be brought forward and also will relate to all new systems took into operation after September 14. Formerly, operators of such PV plants had to restrict the active power feed-in of their installment to 70% or outfit their system with a control device.

The 70% rule will certainly be removed also for all existing PV systems with a capacity of approximately 7 kW.

The money priests of the states of North Rhine-Westphalia, Hesse, Baden-Wuerttemberg, Bavaria and Schleswig-Holstein welcomed the prepared changes. In a joint declaration published on Wednesday, they revealed their fulfillment that the federal government is tackling this crucial issue. Straightforward rules and much less bureaucracy will certainly sustain those energetic for environment protection and power freedom, they stated.

The previously mentioned adjustments belong to a set of measures that the German government strategies to take in a bid to stimulate the release of more renewable resource as well as cut gas usage in the country in the winter 2022/23 and also 2023/24. Among the procedures is likewise a plan for an additional 1.5-GW solar tender, a so-called "unique situation tender", which is scheduled to take place on January 15, 2023.


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