TAX DISPUTE: Photovoltaics industry sounds the alarm! Jobs at risk!

TAX DISPUTE: Photovoltaics industry sounds the alarm! Jobs at risk!

The Austrian photovoltaic industry is sounding the alarm! On February 27, 2025, there was widespread disappointment when the political parties ÖVP, SPÖ and NEOS adhered to the early abolition of the 20 percent VAT exemption for small PV systems. The Photovoltaic Austria Association (PV Austria) warned urgently of the serious consequences of this decision. A recent survey within the industry shows that 90% of companies fear a dramatic decline in demand. This could jeopardize thousands of jobs in small and medium-sized businesses and leave numerous households who want to invest in their own, independent energy supply in the lurch.

Herbert Paierl, CEO of PV Austria, expressed his incomprehension of this decision: “It is absolutely incomprehensible that the re-taxation of small PV systems is still described as a ‘savings potential’ for the state treasury.” He doubts that the assumed additional tax revenue of 175 million euros for 2025 can actually be achieved and expects a maximum of 30 million euros, combined with a significant increase in bureaucracy. The decision is seen as a breach of trust towards private households and local craft businesses, which are primarily looking for reliability and planning security. Paierl also appeals to the incoming federal government to rethink the plan and analyze the real effects of taxation, as a solid budget restructuring is important, but not at the expense of Austria's already ailing economic structure.

Consequences for future investments

The removal of VAT for PV systems up to 35 kWp, which has been in effect since 2024, represented an unbureaucratic incentive to encourage more people to generate their own energy. However, the revival of the tax could discourage many consumers from investing in such transitions. According to the survey, the participants in the PV industry are clear in their opinion: If political decision-makers do not rethink their strategy, the demand for small PV systems will fall dramatically, which would massively harm both the industry and individual households. These alarming developments were reported by pvaustria.at discusses and highlights the industry's serious concerns.