Germany introduces tax breaks for rooftop PV

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From pv magazine Germany

Anyone operating a photovoltaic system with an output of up to 30 KW on a single-family home or commercial property will no longer have to pay income tax on the electricity yield from the beginning of 2023.

The German government approved the measure in its Annual Tax Act 2022. This tax exemption also applies to multi-family houses and mixed-use properties owning a PV system with an output of 15 kW.

In addition, the value-added tax (VAT) will no longer be due on the purchase, import, and installation of photovoltaic systems and energy storage systems. The prerequisite for this is that the systems are installed on or near private homes and apartments as well as on public and other buildings that are used for activities serving the common good.

This VAT exemption means that operators will no longer have to deal with the so-called “Regulation for Small Business Entrepreneurs” in order to receive reimbursement, thus being relieved from bureaucracy. In approving the regulation, the federal government is also using leeway offered by the new EU VAT Directive.

In addition, the federal cabinet has decided that income tax assistance associations may in the future also advise their members on income tax if they operate photovoltaic systems with an output of up to 30 kW that are subject to the income tax exemption. Fiscal legislation had previously prohibited this.

 

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