Austria's PV Sector Faces Uncertainty as Grid Fees and Funding Changes Loom

Austria's PV Sector Faces Uncertainty as Grid Fees and Funding Changes Loom

Austria's photovoltaic (PV) sector faces uncertainty and reduced financial appeal due to proposed grid fees and funding changes. Despite increased funding, the sector's growth has slowed, and operators face higher costs.

The Austrian government quadrupled funding for PV and storage this year due to high demand. However, the planned grid fees for PV operators could significantly reduce profitability. The electricity producers' association warns of a possible sevenfold increase in costs, making it difficult for operators to break even, especially with current low feed-in tariffs.

The Electricity Industry Act (ElWG) revision may lead to network cost distribution between consumers and producers, with exemptions for very small systems under discussion. This uncertainty is affecting potential plant operators' decisions. Despite increased funding, the target of 500 megawatts of PV expansion per quarter has not been reached this year.

Existing systems may also face higher electricity production costs. Further adjustments to funding are planned for 2026, and the reintroduction of the VAT exemption for small PV systems is unlikely. The 'Made in Europe' bonus was introduced this year, increasing the funding requirement. Initially, only 12 million euros were budgeted, which proved insufficient.

Austria's PV sector is grappling with market uncertainty due to proposed grid fees and funding changes. While funding has increased, it remains significantly lower than in previous years, at about one sixth. Operators face higher costs and reduced financial attractiveness, potentially hindering the sector's growth and expansion.

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