Austria installed 2.22 GW of new solar PV capacity in 2024, according to PV Austria
The installations were driven by large-scale projects in the backlog and a VAT exemption for small solar systems
Lack of policy clarity and unclear subsidy conditions are among the factors hampering its growth
Austrian solar PV association PV Austria says the country’s solar PV installations dropped by 10% year-on-year (YoY) in 2024 to 2.225 GW, its 1st year of decline over the last 8 years.
It blamed unclear subsidy conditions, the tense economic situation, and a lack of political support for the drop in deployments. The country’s annual solar PV additions in 2023 totaled 2.6 GW (see Austrian Solar PV Market Grew By 2.6 GW In 2023).
PV Austria’s Managing Director, Vera Immitzer, said that the new installations in 2024 were primarily ‘a small number of large projects’ that were in the backlog from previous years. Most of the projects came online in Q4 2024 as the quarterly installations grew to 710 MW, up from 586 MW in Q4 2023. For Q3, the 399 MW additions represented a YoY decline of 38%.
The value added tax (VAT) exemption for small PV systems of under 20 kW capacity also contributed to the additions; however, the lack of clarity regarding the continued exemption has started to hamper the growth (see PV Austria Fears ‘Massive Uncertainty’ With New Government’s Measures).
An industry survey conducted by the association shows that 3 out of 4 companies expect the suspension of VAT exemption to pull down interest in solar.
“This year, the situation is even more pressing because essential framework conditions are missing – especially due to the abrupt abolition of the VAT exemption. Without rapid political measures, such as the definition of the funding conditions (for the EAG investment funding 2025) and the adoption of the fully negotiated E-Wirtschaftsgesetz (EIWG), we will not be able to get electricity prices under control and Produced PV electricity PV systems smaller than 20 kW Time is running out,” added Immitzer.
The association warns that if the ‘government continues to be negligent in creating clear funding conditions and important legal frameworks,’ the industry could see further declines this year. In such an environment, PV Austria forecasts the country to add 1.3 GW to 1.5 GW of new PV capacity in 2025.