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Austria’s Federal Association of Photovoltaics (PV Austria) says the nation added 500 MW of new solar capacity in the first quarter, driven by investments in private rooftop PV systems benefiting from a value-added tax (VAT) exemption.
From pv magazine Germany
Austria has seen 497 MW of photovoltaic capacity newly installed in the first quarter of 2024. The country is still on track to achieve the 2,000 MW of added annual PV capacity that are planned in the country’s updated network infrastructure plan, Austria’s Federal Association of Photovoltaics (PV Austria) said this week, citing a report by E-Control based on data from the major distribution network operators.
The report also shows that the number of applications for PV systems with an output of up to 1 MW has fallen significantly compared to the same quarter last year, but for systems up to 250 kW it is at least higher than the previous quarter. In contrast, the number of approved commissioning applications is more on par with previous year figures. Commissioning usually takes place one to two quarters after the application, according to the report. The average application processing time for grid connection varies greatly depending on the system class. For PV systems up to 20 kW, it takes an average of 6.9 days between submitting the complete application for grid access to the grid operator and confirmation of the application. For systems between 20 and 2050 kW, the time span is 19.8 days and for systems between 250 and 1000 kW, it is 32.5 days. However, the ranges vary greatly from operator to operator. According to E-Control, the fastest responses took one day, the longest 124 days.
The figures indicate that private households in particular are currently driving the PV expansion, mainly due to the VAT exemption for small PV systems. In contrast, the industry and commerce sectors are showing reluctance as a result of the economically tense environment. The country has been in recession for the fourth quarter in a row. Added to this are high wage costs and loan interest rates as well as the second highest inflation in the EU.
“We are currently seeing a normalization in demand for PV systems,” said PV Austria managing director Vera Immitzer. “The fact is: the recession and economic uncertainty are currently slowing down commercial PV systems in particular and the government must counteract this.” The association is also promoting investment in PV self-consumption systems, which bring great savings as there are no grid fees, taxes or duties. In addition, the subsidies are attractive and the prices for electricity storage are falling rapidly, PV Austria noted.
PV Austria is calling on the government to implement six concrete measures to “continue the PV success story in Austria.” For example, companies should shorten the depreciation period for new PV systems and create attractive financing options for investments. The adoption of the electricity act (E-Wirtschaftsgesetz) would create new opportunities for grid-friendly and profitable activities on the electricity market. An acceleration of grid expansion is necessary. The drafting of the Renewable Energy Expansion Acceleration Act must be linked to the exemption from approval for building PV systems as well as uniform and simplified procedures for open-space systems in the federal states. A storage offensive is needed on a small and large scale to bring electricity generation and consumption into line. In addition, more flexible tariffs should also provide incentives for the transport and heating transition.
“Despite the favorable framework conditions, such as the falling prices for PV systems and electricity storage, the federal government must take the necessary steps to keep demand stable and successfully advance the energy transition,” said Immitzer.
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