Austria's Ministry of Climate Action, Environment, Energy, Mobility, Innovation and Technology (BMK) will provide €135 million ($146 million) in investment support to solar PV systems out of the €150 million ($162 million) it plans for the expansion of renewable energies in 2024.
Solar PV gets the lion's share with the remaining distributed as €10 million ($11 million) for hydropower, €4 million ($4.34 million) for biomass and €1 million ($1.2 million) for wind power.
The grant, under the country's Renewable Energy Expansion Act (EAG), supports the installation of solar PV systems of up to 1 MW capacity, targeted at companies that aim to become energy independent.
Private individuals do not need to apply for funding for up to 35 kW capacity systems as the government waived off value added tax (VAT) for private individuals investing in PV systems since January 1, 2024 (see Another EU Nation To Do Away With Solar VAT).
"For smaller, private photovoltaic systems: zero percent sales tax, zero percent bureaucracy," said Austria's Climate Protection Minister Leonore Gewessler. "The investment and market premium subsidies are now aimed primarily at companies that play a crucial role in the energy transition with mostly larger systems. Every renewable power plant brings us independence."
The government plans to hold 3 calls for PV funding this year—from April 10 to April 29, June 12 to June 26, and October 7 to October 21.
In 2024, the grant will be awarded up to a maximum of €195 ($211)/kW for system sizes of up to 10 kW, and for those between 10 kW and 20 kW, it will not exceed €185 ($200)/kW.
A competitive selection process will determine the grant for PV system sizes of over 20 kW.
For the years 2024 and 2025, BMK said the funding volumes will be increased significantly under the new market premium regulation. For solar PV, it will entail a total PV volume of 1.85 GW, for wind 1.08 GW, for biomass up to 40 MW and around 500 MW for hydropower. BMK plans to launch the 1st call for proposals in May 2024.
"Unlike investment support, with the market premium you do not receive a subsidy for the construction of the systems, but in the event of low market prices, the difference to the maximum price determined by tender is compensated," explained BMK. "This guarantees companies a stable investment framework in the long term."
In 2023, the ministry invested €600 million in subsidies for solar PV installations (see Austria To Shell Out €600 Million As Solar Subsidies In 2023).