September 19, 2022, 4:33 am | Read time: 2 minutes
If the German government has its way, many more roofs in Germany would be equipped with solar panels. However, until now, the acquisition process has been too complicated for many. To address this, bureaucratic hurdles are set to be lowered.
The federal government plans to reduce tax and bureaucratic hurdles for operating photovoltaic systems, including those on private homes. The cabinet has approved a proposal from Finance Minister Christian Lindner. Many citizens have avoided solar systems due to bureaucratic reasons, said the FDP politician. Therefore, future income from solar systems up to a certain capacity will be exempt from income tax. Under certain circumstances, no value-added tax will be charged on delivery and installation.
Additional Incentive for Homeowners
“This frees many private users of photovoltaics from having to use a small business regulation to claim a VAT deduction,” said Lindner. “I believe we have provided a real, very strong additional incentive in the tax system to seriously consider installing a great system on your own roof.”
Bavaria, Baden-Württemberg, Hesse, Schleswig-Holstein, and North Rhine-Westphalia welcome the plans to exempt solar system owners from income tax in the future. In a joint statement, the finance ministers of the five states emphasized: “Together, we can support those who are active in climate protection and energy independence by simplifying and eliminating tax bureaucracy.” No one should have to consult a tax advisor just because they are contributing to the energy transition with a solar system.
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Income Tax Exemption up to 30 Kilowatts
The income tax exemption will apply to solar systems on single-family homes up to 30 kilowatts. For multi-family homes and mixed-use buildings, the limit is 15 kilowatts per residential or commercial unit. Currently, there is only a simplification rule for systems up to 10 kilowatts.
The federal government is also discussing a proposal from the Ministry of Economic Affairs to expand solar power generation. For example, there is a crisis special tender for solar systems with a volume of 1,500 megawatts to promote expansion. This measure is scheduled for January 15. Additionally, the Ministry of Economic Affairs wants regulations limiting the feed-in from solar systems into the grid to be lifted earlier than planned.
With material from dpa