Austria Plans Reform of Photovoltaic Subsidies by October

Core of the Reform: Subsidies for Electricity Storage

Already today, many subsidy recipients opt to have electricity storage subsidized instead of solar panels – this is possible and happens entirely voluntarily. The reform is to expand this option and make it the standard. Zehetner aims to present the draft before October 8.

A "blanket subsidy" – for example through a value-added tax reduction – was rejected by the State Secretary with reference to the current budget situation. The subsidy funds are therefore to be awarded in a targeted manner and aligned with clear criteria, rather than spread broadly.

No Blanket Approach: Targeted Subsidies Instead of Tax Relief

An additional aspect of the future design could be the "Made in Europe" factor. The "Made in Europe" aspect could also be taken into account in the subsidies. This would mean that the subsidies would pursue not only technological but also industrial policy goals.

After all, cheap solar panels are now as common as sand on the beach thanks to Chinese overproduction. Since prices for panels have fallen sharply, the State Secretary sees the greater need for subsidies as being in storage rather than in the modules themselves.

Industrial Policy: "Made in Europe" as a Criterion

The provider Hansesun, which operates in Vorarlberg and Tyrol, said on this: "Wir sind uns einig, dass das aktuelle System grundlegend geändert werden muss und freuen uns, dass wir den Neustart jetzt aktiv mitgestalten dürfen." Companies from the sector thus signaled their willingness to participate in the redesign.

The reform is being prepared at the Ministry of Energy and Economic Affairs (BMWET). A draft is to be in place by October, after which further political consultations and discussions with the industry are to take place. It remains open which specific subsidy rates and storage capacities will be supported in the future.

Reactions from the Industry

With the switch to electricity storage, the State Secretary also aims to contribute to better utilization of the solar power generated. Storage is considered key to making solar power available in the evening and nighttime hours and to relieving the grid.

The industry is responding with cautious positivity to the announcement. While providers such as Hansesun have indicated their willingness to participate, other market participants are waiting for concrete details on the design and level of the future subsidies.