The German government continues to implement measures to support small photovoltaic facilities to deal with the energy crisis. This tax reduction is to support solar cell arrays with a scale of less than 30kW.

September 21, 2022 PV MAGAZINE

From the beginning of 2023, all photovoltaic systems operating on single family or commercial real estate with an output of 30kW or less need not pay any income tax on power generation.

The German government approved the measures in the Annual Tax Act 2022. This tax exemption is also applicable to photovoltaic systems located in multi family residences and multi-purpose properties with an output of 15kW.

In addition, no value added tax (VAT) will be levied on the purchase, import and installation of photovoltaic systems and energy storage systems, provided that these photovoltaic systems are installed on or near the roofs of homes and apartments, or on the roofs of public or other buildings used for public welfare activities.

This VAT reduction means that operators no longer need to apply the so-called "small business operators regulations" to obtain reimbursement, thereby reducing bureaucracy. When approving this provision, the federal government also took advantage of the leeway provided by the new EU VAT law.

In addition, the Federal Cabinet decided that the Income Tax Assistance Association could also provide income tax advice to members of photovoltaic systems with an operating output of 30kW or less in the future according to the provisions on income tax exemption, which was prohibited by previous financial laws.