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Funding programmes 2024: Your start guide for photovoltaics!
11 March 2024 - Reading time: 7 minutes
In today’s world, where the focus is increasingly on renewable energies, photovoltaics has become a key technology for sustainable energy generation.
There are various subsidy programmes in Germany to make entry into photovoltaics even more attractive. The funding programmes offer financial support as well as advice and guidance. In our article, we will give you an overview of the various subsidy options for photovoltaics in Germany to support companies and private individuals in their decision in favour of environmentally friendly energy sources.
Why photovoltaics?
Photovoltaics enable green self-production, independence from conventional energy sources and long-term cost savings. With environmentally friendly energy generation, CO₂ reduction and the possibility of feeding into the grid, photovoltaics is contributing to a sustainable future. Investments not only offer security of supply, but also income from the sale of surplus energy. Photovoltaics is an efficient, technologically advanced solution for a sustainable energy supply.
A quick overview of the funding programmes: An opportunity for everyone
The Federal Republic of Germany has committed itself to promoting the expansion of renewable energies. This commitment is reflected in a variety of funding programmes that cover different players and aspects. The multitude of subsidy programmes may seem confusing at first, but they offer an opportunity for companies, farmers, homeowners and others to actively participate in the energy transition. Below you will find a quick overview of the funding programmes in Germany.
Zero tax rate up to 30 kWp
How: Automatic deduction of 19% VAT if the criteria are met.
KfW subsidy
How: Application and credit assessment of the Renewable Energy Standard (270) as a subsidised loan at the local financial institution.
Regional funding programmes
How: Information and application to the regional authorities.
EEG subsidisation
How: Automatically when the photovoltaic system is commissioned.
Zero tax rate up to 30 kWp
How: Automatic deduction of 19% VAT if the criteria are met.
KfW subsidy
How: Application and credit assessment of the Renewable Energy Standard (270) as a subsidised loan at the local financial institution.
Regional funding programmes
How: Information and application to the regional authorities.
EEG subsidisation
How: Automatically when the photovoltaic system is commissioned.
The subsidies in detail - What is on offer?
Zero tax rate up to 30 kWp:
The energy transition and the switch to sustainable energy sources are important goals of German policy. Photovoltaic systems play a central role here. To make investing in a solar energy system more attractive, there are important subsidy options, such as VAT exemption.
What does the VAT exemption mean?
The purchase and installation of a photovoltaic system with an output of up to 30 kWp is exempt from VAT. This means that you do not have to pay 19% VAT on your purchase.
Conditions for tax exemption:
- The photovoltaic system must be installed in Germany.
- The photovoltaic system can be installed on or near a residential building.
- The operator must use the system himself.
- The output of the system must not exceed 30 kWp (kilowatt peak).
- There are no restrictions on the use of the electricity generated.
- The system does not have to fulfil the minimum technical requirements of the EEG.
How does the tax exemption work?
The tax exemption is granted automatically. You do not need to submit a separate application. VODASUN ensures an integrated supply chain for the realisation of your photovoltaic system, which is why the invoice does not include VAT.
KfW subsidy:
KfW plays a key role in promoting renewable energies in Germany, particularly in the field of photovoltaics. KfW offers targeted support to promote the expansion of solar systems and facilitate the switch to sustainable energy sources. The prerequisite for the subsidy is that the photovoltaic system is installed in Germany and fulfils the minimum technical requirements of the Renewable Energy Sources Act (EEG).
Minimum technical requirements of the EEG:
- Fulfilment of technical standards.
- Ensure a safe and stable grid connection.
- Remote controllability in order to be able to react to grid fluctuations.
- Measurement and control technology must be available.
- Compliance with applicable environmental regulations.
- Applicable safety standards must be guaranteed.
There is one main promotion that is most relevant:
The KfW loan 270:
- Favourable loan up to 100,000 euros per system
- Interest rate from 5.21 % p.a. (depending on conditions), as at 03/2024
- Choice of constant instalment or bullet repayment
Questions?
Regional funding programmes:
Germany has a large number of regional support programmes that encourage companies, farmers, homeowners and other stakeholders to actively participate in the energy transition. These programmes, which are offered by the federal states and local authorities, include various funding options such as grants, loans or interest-free loans.
The requirements for participation in regional funding programmes vary depending on the federal state and local authority. It is therefore important to find out about the specific requirements from the relevant authorities. The amount of funding also varies and depends on the individual conditions of the respective programme. These programmes can include grants, credits or interest-free loans.
Information and application:
Information on funding opportunities can be found on the websites of the respective federal states, municipalities and funding institutions. The application for funding is usually submitted to the responsible authority – we will be happy to advise you on this.
EEG feed-in tariff:
Since February 2024, system operators have received a fixed remuneration for every kilowatt hour of solar power fed into the grid as EEG funding from the Federal Network Agency. The amount of remuneration depends on various factors, such as the size of the system and the time of commissioning.
In order to receive the EEG feed-in tariff, certain requirements must be met. The system must be installed in Germany and fulfil the minimum technical requirements of the EEG. In addition, the remuneration is paid on a degressive basis in order to incentivise the rapid integration of renewable energies. In addition, the amount of the EEG feed-in tariff is adjusted annually.
The remuneration process is relatively simple:
- Registration of the photovoltaic system with the grid operator by VODASUN
- Measurement of the amount of solar power fed in by the grid operator
- Payment of the remuneration by the grid operator
Conclusion:
The entry into the solar industry can be extensive, but offers a multitude of possibilities for utilising a photovoltaic system. The numerous funding programmes are constantly changing, which is why our team of experts is available to answer any questions on this topic.
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