Photovoltaic Boom Continues Despite Subsidy Cuts

Despite drastically reduced government subsidies, the expansion of photovoltaic systems in Austria remains at a comparatively high level this year. According to the market study "Photovoltaic Industry Radar in Austria 2026," the newly installed nominal capacity in 2025 is expected to be about 18 percent below the previous year's level, but at around 1,700 megawatt peak (MWp), it will still be significantly above the level of 2022.

Photovoltaic Expansion Remains High

According to the analysis, the decline is particularly noticeable in the residential sector, especially in single and two-family homes. Compared to 2022, almost 70 percent more capacity will still be added, it was said. Compared to the record year of 2023, the increase is about 27 percent lower.

The conditions for new investments are currently considered significantly worse than in previous years. For small systems, the previous VAT exemption has been replaced this year by an investment cost subsidy of 10 percent, which corresponds to a halving of the subsidy rate. In addition, only 30 million euros in funding were initially available, and the fund was increased to 50 million euros in the middle of the year. In the previous funding program, a total of 600 million euros in government subsidies were provided.

Future Feed-In Fee Planned

At the same time, according to the industry radar, feed-in tariffs are stabilizing at a comparatively low five cents per kilowatt-hour. In some regions, the feed-in capacities for private systems are already so scarce that the federal government wants to involve operators of private photovoltaic systems in grid expansion through feed-in fees - according to current plans, at least all systems with a capacity of more than 7 kilowatt peak.

"Apparently, the switch to solar energy works quite well even with significantly fewer government subsidies," says industry radar managing director Andreas Kreutzer. In the funding years 2022 to 2024, there was "undoubtedly an over-subsidization," and the carry-over effects were "enormous."

(APA/Red)

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