Tax Relief For Small Scale Solar Systems In Germany

German Cabinet Approves Draft Annual Tax Act 2022 With Tax Benefits Related To Small Scale PV

Tax Relief For Small Scale Solar Systems In Germany

To support and speed up solar PV installations, the German government is set to introduce tax benefits for small scale deployments. At the same time, Reuters says the country plans to introduce a crisis tender for 1.5 GW solar in January 2023. Pictured are solar panels on a roof of a farm building in Schleswig-Holstein, Germany. (Photo Credit: Ralf Gosch/

  • The German cabinet has included tax benefits for distributed solar under draft Annual Tax Act 2022
  • The measures include providing tax exemption for certain system sizes for homes, apartments, commercial properties and mixed-use buildings
  • Income tax advisors will be allowed to advice their clients for these tax benefits that are likely to come into force from January 1, 2023

The German Federal Cabinet has eased bureaucratic hurdles for the installation and operation of small-scale solar PV systems while also providing tax relief as part of measures approved under draft Annual Tax Act 2022 which will further promote rooftop solar.

There will be no income tax on income generated from the operation of solar PV systems of up to 30 kW for single family homes and commercial properties. For multi-family homes as apartment buildings or mixed-use properties, the system limit is 15 kW.

Income tax associations will be able to advice their clients about the exemption for systems with up to 30 kW capacity.

Additionally, the cabinet has agreed to apply a zero-sales tax rate for the supply and installation of solar PV and storage systems provided it is installed on or near private homes, dwellings and public and other buildings used for public good. The measures are likely to come into force from January 1, 2023.

“Since photovoltaic system operators are no longer burdened with sales tax when purchasing the system, they no longer have to do without the small business regulation in order to have the input tax amounts reimbursed. This relieves you of bureaucracy,” stated the cabinet.

Along with the above, the draft also includes measures to reduce sales tax on gas deliveries and extension of peak equalization. All of these steps are aimed at providing tax relief and adjustments to relieve the burden on citizens and companies.

Dealing with an energy crisis like never before with elevated electricity prices, short supply of gas and winters approaching Germany, like the rest of Europe that depended significantly on Russian fuel supply is accelerating the installation of renewables especially solar. Recently, Reuters quoted a government official to report that the country plans to launch a special crisis tender for 1.5 GW solar in January 2023 to ‘make up for reduced Russian gas imports’.

About The Author

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews. Anu is our solar news whirlwind. At TaiyangNews she covers everything that is of importance in the world of solar power.

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