Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure AT-2024-1/3503 – Updated – measures in Austria
| Country | Austria , applies nationwide |
| Time period | Temporary, 01 January 2024 – 31 December 2025 |
| Context | Green Transition |
| Type | Legislations or other statutory regulations |
| Category |
Promoting the economic, labour market and social recovery into a green future
– Retrofitting buildings |
| Author | Bernadette Allinger (Forba) and Eurofound |
| Measure added | 29 February 2024 (updated 26 September 2025) |
According to Austria's climate and energy strategy, Austria's electricity consumption is to be covered to 100% by renewable energy sources by 2030, saving around eight million tons of CO2, and climate neutrality is to be reached by 2040. In a country where 60 percent of electricity is generated by hydropower, photovoltaics has thus far played a minor role, but this is set to change in the face of the climate crisis. Generation of energy by photovoltaic systems installations has risen within the last few years.
In order to further increase the popularity of photovoltaic systems also for private citizens, several funding programmes have been in place. As of 2024, a zero tax rate for photovoltaic systems with an output of up to 35 kWp and storage systems as an ancillary service has been implemented. This exemption of VAT (lying at 20 percent) also applies to so-called 'balcony power plants' with a total bottleneck output of up to 35 kWp - i.e. photovoltaic modules that are mounted on the balcony and usually connected to a socket. The VAT exemption applies for the years 2024 and 2025.
The following updates to this measure have been made after it came into effect.
| 23 June 2025 |
From 23 June 2025 onwards, a bonus applies: Additional surcharges for European (EEA/Switzerland) added value are granted: PV modules : +10% Inverter : +10% Power storage : +10% (Maximum total bonus: 20%) |
| 23 April 2025 |
New government-sponsored funding for photovoltaic systems and energy storage systems was introduced, granting investment grants under the Renewable Energy Expansion Act (EAG). According to the law, new or expanded PV-systems up to 1,000 kWp and energy storage systems up to 50 kWh (at least 0.5 kWh/kWp) are eligible for funding (provided they are installed together with a PV system. The funding rates differ by category: Category A (up to 10 kWp): 160 €/kWp Category B (>10-20 kWp): 150 €/kWp Category C (>20–100 kWp): max. 140 €/kWp Category D (>100–1,000 kWp): max. 130 €/kWp Power storage: 150 €/kWh Three different funding periods apply: Call 1: 23 April - 8 May Call 2: 23 June - 7 July Call 3: 8 - 22 October |
| 01 April 2025 |
Due to the budgetary constraints (excessive deficit procedure) and according to the Budget Restructuring Measures Act (BSMG 2025), the application of the zero tax rate ended by 31 March 2025. Only for contracts that were concluded before 7 March 2025, the non-application of the VAT applies, until 31 December 2025 |
No numbers are available yet.
| Workers | Businesses | Citizens |
|---|---|---|
| Does not apply to workers | Applies to all businesses | Applies to all citizens |
| Actors | Funding |
|---|---|
|
National government
|
National funds
|
Social partners' role in designing the measure and form of involvement:
| Trade unions | Employers' organisations | |
|---|---|---|
| Role | No involvement as case not in social partner domain | No involvement as case not in social partner domain |
| Form | Not applicable | Not applicable |
Social partners' role in the implementation, monitoring and assessment phase:
No involvement.
No views/reactions could be identified.
Citation
Eurofound (2024), Photovoltaics funding, measure AT-2024-1/3503 (measures in Austria), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/AT-2024-1_3503.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.