September 19, 2022, 4:33 am | Read time: 2 minutes
According to the federal government, many more roofs in Germany would be equipped with solar panels. However, the acquisition has been too complicated for many so far. Therefore, bureaucratic hurdles are now set to be lowered.
The federal government aims to reduce tax and bureaucratic barriers for operating photovoltaic systems, including on private homes. The Cabinet has approved a proposal by Finance Minister Christian Lindner. Many citizens have been deterred from solar panels due to bureaucratic reasons, said the FDP politician. Therefore, income from solar panels up to a certain capacity will be exempt from income tax in the future. 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 for a VAT deduction,” said Lindner. “I believe we have provided a real, very strong additional incentive in the tax system to seriously consider putting a great system on your own roof.”
Bavaria, Baden-Württemberg, Hesse, Schleswig-Holstein, and North Rhine-Westphalia welcome the plans to exempt solar panel owners from income tax in the future. In a joint statement, the finance ministers of the five federal states emphasized: “Together, we can support those who are active in climate protection and energy independence by simplifying and waiving tax bureaucracy.” No one should have to consult a tax advisor just because they contribute to the energy transition with a solar panel.
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Income Tax Exemption up to 30 Kilowatts
The income tax exemption will apply to solar panels on single-family homes up to 30 kilowatts. For multi-family 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 panels with a volume of 1,500 megawatts to advance expansion. This measure is scheduled for January 15. Additionally, the Ministry of Economic Affairs wants regulations limiting the feed-in from solar panels to the grid to be lifted earlier than planned.
With material from dpa