German finance ministry plans tax relief for small PV systems

The German Federal Ministry of Finance is planning various tax relief measures for PV smaller PV systems to be included into the 2023 Annual Tax Act, which is due for consultation soon. An internal working paper, excerpts of which have already been published in advance by several media and agencies, envisages that income from systems of up to 30 kilowatts or up to 15 kilowatts per apartment or commercial unit in rented buildings will no longer be subject to income tax. This is to apply to feed-in tariffs, self consumption and also electricity deliveries to tenants. In addition, as a change in European Union regulations has allowed since April, no sales tax is to be levied on such systems under certain conditions.
The planned regulations are less about financial relief and more about reducing bureaucratic hurdles. The ministry’s proposals have not yet been agreed by the cabinet, but approval by the two other governing parties, the SPD and Bündnis 90 /Die Grünen (Social Democrats and Green Party), is considered likely.

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