Out of its targeted 2 GW annual expansion of solar PV capacity, Austria has already installed 497 MW during Q1/2024, driven mainly by private households thanks to the Value Added Tax (VAT) exemption for small solar PV systems, says the regulator for electricity and natural gas, E-Control.  

Analysis of grid connection requests by the 16 Distribution System Operators (DSO) shows a total of 32,268 applications being received in Q1, according to an E-Control report.   

Out of these, 85.2% were submitted for small-scale systems of up to 20 kW capacity, 13.5% for system sizes between 20 kW and 250 kW, while the remaining 1.3% were for systems of more than 250 kW.   

The average processing time of applications varies for various system sizes and from operator to operator. For instance, for 0.8 kW to 20 kW, an average of 6.9 days are taken between the receipt of application for network access and its confirmation. 

For bigger systems within the 20 kW to 250 kW range, the period extends to an average of 19.8 days to 32.5 days. According to E-Control, the fastest approvals took an average of 1 day for response, while the longest time taken was 124 days.  

The local solar PV association Photovoltaic Austria (PV Austria) says while there is consistent growth in the residential segment, the commercial and industrial (C&I) segment is lagging. The reasons are mainly economic since Austria is facing its 4th successive quarter of recession. High wages, high interest rates and the 2nd highest inflation in the European Union (EU) are the reasons forcing this segment reluctant to invest.  

“To make matters worse, supply bottlenecks in recent years have led to high inventories at PV companies, which now have to be written down due to cheaper Asian products and falling demand,” it explains.  

To increase the uptake of solar PV in the C&I segment, the association demands better economic conditions for companies with a shortened depreciation period for new PV systems, attractive financing options, grid expansion, exemption from approval for building PV systems and simplified procedures for open-space systems in the federal states, among other measures.  

“In view of the favorable framework conditions, such as the falling prices for PV systems and electricity storage, the federal government must take the necessary steps to keep demand stable and successfully advance the energy transition,” said PV Austria’s Managing Director Vera Immitzer.  

Recently, the Austrian government pledged support for the local solar PV industrial supply chain with a Made in Europe bonus (see Austria Announces Made In Europe Bonus For Solar PV).