Austria plans to reshape its solar PV subsidies from 2027, with greater emphasis on storage and EMS
A ministry-commissioned study sees up to 8 GW of useful market-oriented battery capacity by 2030
The Ministry of Economic Affairs said storage growth will depend not only on financial support but also on network charges and regulatory conditions
Austria has announced its ‘storage offensive’ as rising solar generation creates a growing gap between cheap midday electricity and more expensive evening power. The government plans to put greater emphasis on batteries, energy management systems (EMS) and other storage options as part of a broader shift in its energy policy.
High temperatures, low precipitation and strong solar PV generation have put pressure on the power system, according to the Ministry of Economic Affairs. In the summer of 2026, while hydropower output dropped, solar PV production has been gaining ground and regularly reached its daily peak around noon.
The ministry pointed to data from a recent Saturday, August 15, 2026, when Austria recorded 120.1 GWh of electricity consumption and 117.8 GWh of generation. About 30% of generation came from solar PV as its output reached 4.3 GW around midday, while the country's daily load peaked at 6.1 GW in the evening, when PV generation had almost disappeared.
The difference was also reflected in wholesale prices. Between 10 a.m. and 4 p.m., the average wholesale electricity price was €14/MWh, compared with about €180/MWh during the evening.
Austria’s Minister of Economy, Wolfgang Hattmannsdorfer, said the focus should therefore be on storing low-cost electricity when solar generation is high and making it available later in the day, during ‘more expensive evening hours’.
The ministry has outlined the following measures under the storage offensive:
A new PV support scheme with a stronger focus on storage
Inclusion of storage infrastructure in the new grid infrastructure plan
Faster approval procedures for battery storage projects under the Renewable Energy Expansion Acceleration Act (EABG)
A dedicated support program for smart EMS for households and businesses
The government also plans to change the country's PV support system from 2027. Under the proposed reform, the Renewable Energy Expansion Act (EAG) investment subsidy would no longer operate on a first-come, first-served basis. Applications could instead be submitted after installation and invoicing.
Broad support for conventional small-scale PV systems would also be phased out, and focus would shift toward EMS and smart storage designed to increase self-consumption and reduce pressure on the grid.
Storage could also be supported when added to existing PV systems, provided it is combined with an EMS. This would allow storage to be added without installing a new PV system.
Some forms of PV would remain eligible for support, according to the ministry, including building-integrated PV (BIPV), agrivoltaics, parking-lot canopies, floating PV, and PV installed on noise barriers. The new funding approach will continue to include a bonus for projects that use European production for key components.
A storage study commissioned by the ministry estimates that up to 8 GW of market-oriented battery capacity could be economically useful in Austria by 2030. Depending on the scenario, additional batteries could lower wholesale electricity prices by up to €2/MWh in 2030, the study found.
The ministry said that, based on a half-year electricity consumption of about 34 TWh, this could represent savings of up to €68 million for H1 2026. Austria currently has more than 3.2 GWh of installed battery storage, according to industry forecasts. Most of the systems have storage capacity below 50 kWh. The country also has 6.2 GW of installed pumped-storage capacity.
The ministry added that storage growth will depend not only on financial support but also on network charges and regulatory conditions. It called for a review of the number and design of criteria proposed by E-Control for system-supporting storage. It said the rules should be broad and practical enough to avoid slowing storage deployment.
Hattmannsdorfer said, “Our goal is clear: to make affordable, locally produced electricity available when we need it. For this, we need more intelligent storage solutions – from household units to large-scale storage facilities. It's unacceptable that we have a significant economic need for storage while simultaneously hindering its development with overly restrictive regulations. E - Control needs to tighten its rules here.”
Lawmakers from Austria's Freedom Party (FPÖ), Axel Kassegger and Paul Hammerl, criticized the government's storage offensive, saying the measures largely repeat earlier proposals.
Austrian Photovoltaic & Battery Association (PV&B Austria) welcomed the storage push but urged the government to move quickly from announcements to implementation, particularly by clarifying the planned 2027 funding framework.
“From the association's perspective, simply changing the funding structure isn't enough. Discussions about tax breaks must continue. E-Control is also called upon to create appropriate, practical framework conditions for electricity storage. And grid operators must also integrate electricity storage more effectively into their grid development plans in the future,” said Vera Immitzer of PV&B Austria.
