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Austria plans to overhaul solar subsidies after financing for small solar PV systems was exhausted in seconds during the country’s last funding call.
The Austrian Ministry of Economy, Energy and Tourism has announced the conclusion of the third and final funding round for photovoltaic systems and electricity storage in 2026.
According to State Secretary for Energy Elisabeth Zehetner, while the results show a positive interest in solar PV and storage, they also highlight that the current funding system has reached its limits.
A total of 41,322 applications were submitted, requesting approximately €192 million in funding. However, only 7,007 funding commitments were issued.
According to the Ministry statement, the need for funding reform was especially obvious for smaller solar PV systems of up to 10kWp. Funding was only available for applications submitted within the first 29 seconds after the funding call opened.
Zehetner suggests the results show a need for a redesign of the existing funding system. “When a few seconds determine whether a small system receives funding, then we need to change the rules of the game. We are therefore working on a new model that will create greater planning certainty and focus on intelligent storage solutions. We are currently preparing the necessary legislation."
Zehetner explains that solar PV is a well-established technology in Austria. The focus now needs to be on better utilising self-generated electricity and relieving the strain on our grids.
“For this, we need more intelligent storage systems and a funding system that enables reliable planning for both households and installation companies. An installation company must be able to plan its orders according to its customers' needs, not according to a few seconds in the funding calendar," said Zehetner.
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To allow for these advances in the market, amendments to the Renewable Energy Sources Act are being planned. These include revisions to the existing PV investment subsidies, as well as a storage system bonus to replace the traditional subsidies for PV modules.
This bonus will support both storage systems in new installations and the retrofitting of existing PV systems.
Intelligent energy management systems will also be a prerequisite to ensure solar power is used and stored most efficiently for households and the overall energy system.
The policy reforms will emphasise European value creation. Zehetner argues that the current first-come, first-served system creates uncertainty and disadvantages applicants. For this reason, this principle will be abolished and replaced with a continuous application process following project completion.
Furthermore, the Ministry states that for new solar plus storage systems, a "Made in Europe" inverter will be mandatory.
For retrofitting existing PV installations, an additional "Made in Europe" bonus for storage systems will still be available.
Besides redesigning the subsidy programme, the planned amendment to the Renewable Energy Expansion Act aims to create a framework to reduce the renewable energy subsidy lump sum to zero for 2027.
Together with the planned suspension of the renewable energy subsidy contribution, this would help to ease the financial burden on households and businesses.
The goal is to bring the redesign of the funding programme, along with the legal prerequisites for suspending the renewable energy flat rate and the subsidy contribution for 2027, to parliamentary debate as early as next week.
"We want to achieve two things simultaneously: reduce electricity costs for households and businesses and further develop the subsidies so that we can achieve more for our energy system with the available funds. Preparations for this are in full swing. Our goal is to bring the legal framework to parliament next week. This requires a two-thirds majority. I hope that all parties recognise this opportunity to take an important step together towards affordable energy and a more efficient energy transition," said Zehetner.
Zehetner emphasised Austria's position on creating value for Europe in her in Vienna this week.
"Our ambition must be to decarbonise Europe's industries without driving out production of Europe,” declared Zehetner. “If a factory closes here and its products are imported from somewhere else with higher emissions, we have lost jobs without solving the climate problem. Climate policy and industrial policy must therefore go hand in hand, and the energy transition will then succeed when investing in cleaner production also makes sense from a business perspective.”
Zehetner made it clear that any European energy investment should help European companies build the strength that enables them to compete on the international stage. She said: “This is why Made in Europe matters. We need strong capabilities along strategic value chains; from research and components to manufacturing, from deployment to recycling – and reliable international partners are part of this effort.”
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