Solar Incentives in Austria

Austria introduced a 0% VAT rate on residential solar PV equipment and installation effective January 1, 2024 under the Eigenstrom-Steuergesetz. The provision applies to PV modules, inverters, mounting systems, and battery storage when supplied as part of a complete installation, plus the installation labour. System cap is 35 kWp peak power. The zero rate is scheduled to expire on December 31, 2026; reversion to the standard 20% rate is expected unless extended (a one-year extension was granted in 2025; check current status before signing). Buildings used primarily for residential purposes qualify automatically. Mixed-use and commercial buildings qualify only when the system serves a residential dwelling unit. The supplier/installer must apply the zero rate at the point of invoice; standalone equipment purchases not paired with installation services remain at 20%. Most major EU panel and inverter brands available through Austrian distributors are covered.

The Erneuerbaren-Ausbau-Gesetz (EAG, Renewable Energies Expansion Act) Investitionszuschuss is a one-time, non-repayable subsidy for new or expanded photovoltaic and battery-storage installations. Administered by OeMAG (Abwicklungsstelle für Ökostrom AG), the regulator-appointed market settlement entity. The programme funds in 'Calls' (Fördercalls) typically held twice yearly with limited budget per round; first-come-first-served once budget is depleted. Applications must be submitted via the OeMAG online portal before purchase or installation begins — retroactive applications are not accepted. Subsidy rates are announced per Call and have generally declined over time as installation costs fall. Storage subsidies require pairing with a new or existing PV installation. Battery capacity must be ≥ 0.5 kWh per kWp of PV. Combining EAG with the federal 0% VAT rate is permitted; the subsidy is calculated on the post-VAT-discount price.

The Marktprämie supplements the wholesale spot-market price for solar generation. It is structured as a contract-for-difference (CfD): if the spot price falls below the strike price, OeMAG pays the difference; if above, no premium is paid (and in some cases negative pricing). The premium is awarded via competitive auction in the EAG Calls and locks the rate for 20 years from commissioning. For residential systems ≤ 100 kWp, eligibility is conditional on the system NOT receiving the Investitionszuschuss for the same kWp — operators must choose Investitionszuschuss (one-time grant) OR Marktprämie (20-year revenue stream). Most residential installations elect Investitionszuschuss, since self-consumption value at retail rates exceeds the marginal value of grid export at the Marktprämie strike.

Self-consumed solar electricity from PV systems with peak capacity ≤ 25 kWp is fully exempt from Austrian Stromsteuer (electricity tax of €0.015/kWh including surcharges). The exemption applies automatically — no separate registration is needed. For systems > 25 kWp the exemption applies only to the first 25 kWp portion; the remainder is taxable on self-consumption. Savings scale with self-consumption volume: a household consuming 4,000 kWh/year of self-generated solar saves approximately €60/year. The exemption is in addition to the avoided retail electricity charge, making self-consumption substantially more economical than grid export under current Austrian tariff structures.

Each of Austria's nine Bundesländer (Wien, Niederösterreich, Oberösterreich, Salzburg, Steiermark, Tirol, Vorarlberg, Kärnten, Burgenland) operates separate regional subsidy programmes that stack on top of federal EAG and 0% VAT measures. Programmes change annually; budgets are typically limited and exhausted early in the calendar year. Notable in 2026: Wien Sonnenstrom-Bonus (€250–€800/kWp), Salzburg Photovoltaik-Förderung (€200/kWp), Niederösterreich Sonnenkraftwerk (€200/kWp + storage adders). Programme structures are inconsistent across Bundesländer — some pay fixed €/kWp, some percentage of cost, some require specific eligibility (e.g., owner-occupied primary residence). Check umweltfoerderung.at for the consolidated federal portal and the relevant Land government website for the regional supplement applicable to your address. Stacking with EAG Investitionszuschuss is generally permitted but the combined total is capped; the Land subsidy is calculated on the post-EAG cost.