What the new funding brings

How you can now get the new funding, why speed counts and when PV systems are profitable despite less money from the government.

The bad news: PV systems suddenly became 20 percent more expensive on April 1. This isn't due to tariffs or supply bottlenecks on the global market, but rather to the new government's austerity measures. It prematurely ended the 20 percent VAT exemption for PV systems and energy storage systems, which was originally scheduled to last until the end of the year.

The good news: Despite austerity measures, there is a new subsidy available this year. However, the process is no longer as convenient as with the tax exemption. The unpopular first-come, first-served principle has been returned. If there are more applications than funding, those who submit them fastest will be considered. This last happened in the PV boom year of 2022, when households regularly failed to qualify for subsidies. Rejected subsidy applications could now become reality again because much less funding is available. "The state subsidy for investments will amount to 60 million euros in 2025. In 2023, 600 million euros were still available for PV subsidies," says Vera Immitzer, head of the industry association PV Austria.

How much money is available for PV systems and power storage? The subsidy is based on the system's output, which is measured in kilowatt-peak (kWp). One kWp produces approximately 1,000 kilowatt hours (kWh) of solar power per year. Most private systems are between five and ten kWp. This system size also offers the highest investment subsidy per kWp. l Category A: one to ten kWp: €160 per kWp. l Category B: ten to 20 kWp: €150 per kWp. l From Category C: For systems over 20 kWp, those with the lowest subsidy requirement per kWp are eligible. l Power storage: €150 per kWh is available. A maximum of 50 kWh is subsidized. The subsidy is only available in combination with the construction or expansion of a PV system.

This year, there are two funding calls for applications. The next call will take place from June 23 to July 7. Another call will be held in the fall, from October 8 to 22. In both cases, you'll need to act quickly, as the timing of the submission is crucial in the categories up to 20 kWp.

Is there more money for investments from Europe?

Yes, for the first time there will be a Made-in-Europe bonus with the funding call on June 23rd to reduce dependence on Asian suppliers. If the PV modules are manufactured in Europe, the investment subsidy increases by ten percent; if the same applies to the inverter, there is another ten percent. This means a maximum of 20 percent more funding is possible for the system. There is also a separate bonus for European electricity storage systems. Here the subsidy also increases the storage subsidy by ten percent. Example: A household buys a ten kWp system with modules from Asia, but the inverter and storage systems come from Europe. This increases the subsidy for the system from 1,600 to 1,760 euros, and the storage subsidy from 1,500 to 1,650 euros.

The bonus is particularly relevant in the area of ​​inverters. Many domestic systems use devices from the Upper Austrian manufacturer Fronius, which has also been offering energy storage since this year. However, Chinese suppliers such as BYD have long been the market leader in storage. The modules are even more firmly in Chinese hands. They have almost completely displaced European suppliers over the past ten years. The bonus is an incentive, but can only partially offset the higher price of European products. For example, Verbund offers its systems with an inverter from the Chinese company Huawei as standard. If you want a higher-quality product from Fronius, you will have to pay a surcharge. For a system with 10.68 kWp, this costs €1,092.

This is how a small photovoltaic system with storage pays off with the new subsidy with the new subsidy

At a cost of 30 cents per kWh according to E Control, May 2025. ** At an 8-cent feed-in tariff. What do you need to apply for federal funding? Starting at 5 p.m. on the first day of the funding call, you or your installation company must draw a ticket online. This is only possible on the website of the EAG processing office (eag-abwicklungsstelle.at).

Only with this ticket can the application be submitted with all the necessary data. This includes, for example, the system size and metering point number, which must be assigned in advance by the grid operator. The application must be submitted before the end of the funding call. Otherwise, the ticket expires. Construction of the system can begin before the funding call. However, commissioning may only take place after the initial funding application.

Are there additional subsidies from the states? Partially. There are large differences between the states here. It is also important to consider whether state subsidies can be combined with those from the federal government. For example, Vienna subsidizes systems with 250 euros per kWp and storage with 200 euros per kWh. Combining them with federal subsidies is not permitted. In Salzburg, on the other hand, systems and storage systems receive an additional subsidy of 1,000 euros each in addition to the federal subsidy. However, many states no longer subsidize traditional PV systems on single-family homes at all, for example Lower and Upper Austria and Styria. Here, only complex projects such as parking lot roofs with PV systems receive additional subsidies, but these are extremely generous. For example, Lower Austria is still subsidizing such parking lot roofs with 850 euros per kWp until the end of September. Some states are also generous with their subsidies for PV on multi-family homes. "In Vienna, they offer 500 euros per kWp. That's very attractive, even if these projects are more expensive to implement," says Cornelia Daniel, founder of the solar consulting company Dachgold. Some municipalities also subsidize the construction of PV systems. The subsidies are often well-hidden, so it's worth taking a closer look at the municipality's website.

Tip: A detailed overview of all state funding and whether it is compatible with that of the federal government can be found at pvaustria.at/foerderungen.

Are PV systems still profitable with the new subsidies?

Yes, even if the new subsidy cannot compensate for the loss of VAT exemption, especially for smaller systems. A payback period of around ten years remains realistic, even if there are many uncertainties in the calculations, such as the level of the feed-in tariff and the electricity price (see example). Because electricity prices have risen again – in January, grid fees for private households were increased by 23 percent – ​​consuming your own inexpensive electricity is all the more worthwhile. There are no grid costs involved. According to E-Control, the average electricity price for a new contract in Austria in May 2025 was around 30 cents per kWh. By comparison: "A private household can expect production costs of eight cents per kWh for its own PV electricity; with storage, the costs are ten cents. Larger commercial systems have production costs of five cents," Daniel calculates. At the same time, feeding your own electricity into the grid is becoming less and less attractive due to lower tariffs. This argues in favor of storing the electricity instead of selling it for a few cents.

According to the experts, given the budget constraints, an increase in subsidies is not expected next year. "The fact is that there is still an attractive subsidy available this year. That could be completely different in 2026. Anyone planning a system should definitely apply for the subsidy this year," recommends Daniel. And association head Immitzer expects "that in the future, only investments in systems with electricity storage could be subsidized." This would create an incentive to consume even more electricity.

~ Costs of photovoltaic system 5 kWp including installation 8,000 euros Battery storage 5 kWh 4,300 euros less system subsidy (160 euros/kWp) -800 euros less storage subsidy (150 euros/kWh) -750 euros Total 10,750 euros Benefit/year Electricity requirement four-person household 4,500 kWh Expected electricity production 5,000 kWh Estimate of self-consumption in kWh (around 70%) 3,500 kWh Feed-in to the power grid in kWh 1,500 kWh Savings through self-consumption in euros 1,050 euros* Yield from feeding into the power grid 120 euros** Amortization period under constant conditions 9 years Useful life of system 25 years

Profit