0 % VAT
Under certain conditions, a zero VAT rate applies to the supply and installation of smaller PV systems on or attached to residential buildings – operators save the VAT without having to deal with input tax deductions and VAT returns.
EEG · KfW · Taxes · Tenant power
Funding: General
From the feed-in tariff to the zero VAT rate: in Germany, funding for renewable energy rests on several pillars. Here we explain the mechanisms behind it – clearly, and without glossing over the fine print.
Pillar 1 · Feed-in tariff
The EEG: 20 years of predictable revenue
The EEG (Renewable Energy Sources Act) guarantees operators of new PV systems fixed feed-in rates per exported kilowatt-hour for 20 years. The amount depends on system size, commissioning date and operating mode – in principle, there are two models to choose from:
| Model | Surplus feed-in | Full feed-in |
|---|---|---|
| Principle | Solar power is used on site first; only the surplus flows into the grid. | All generated electricity is fed into the grid. |
| Remuneration | Standard feed-in rate for the exported electricity. | Higher rate per kilowatt-hour to compensate for forgoing self-consumption. |
| Economic lever | Saved grid electricity – usually the bigger benefit, especially with storage and an EV. | Maximum feed-in revenue – attractive where on-site self-consumption is very low. |
| Typical use | Homes and businesses with significant on-site electricity consumption. | Roof areas without notable consumption, e.g. barns or purely rented properties. |
The specific feed-in rates are adjusted regularly and depend on the commissioning date. We determine which rates apply to your system and which model pays off in your individual profitability calculation.
Pillar 2 · Financing
KfW loans: finance affordably instead of paying out of pocket
The state-owned KfW development bank traditionally supports investments in renewable energy through low-interest loans – for private individuals, companies, farmers and municipalities. The mechanism is always similar:
- Apply before the project starts, through your own bank – not directly with KfW
- Depending on the programme, PV systems, battery storage and charging infrastructure including installation can be financed
- Long terms and repayment-free initial years ease liquidity in the start-up phase
- Combination with the EEG feed-in tariff and tax benefits is generally possible
Conditions, programme numbers and requirements change regularly. We supply the technical documentation and profitability calculations your bank needs for its credit assessment – and your bank clarifies the current conditions.
Tenant power: Anyone who supplies solar power from their own roof to tenants in the building can, under certain conditions, additionally receive the statutory Mieterstromzuschlag (tenant-electricity surcharge) per kilowatt-hour delivered. Our Tenant power page shows how the model works.
Pillar 3 · Tax framework
Tax benefits that make PV more attractive
Besides remuneration and financing, in recent years the legislator has also significantly simplified photovoltaics from a tax perspective. The most important general rules:
Income tax exemption
Income from operating smaller PV systems below statutorily defined capacity limits is exempt from income tax – the system runs largely "quietly" from a tax point of view.
IAB for businesses
Under certain conditions, companies can claim planned PV investments as a profit-reducing deduction even before the purchase – the investment deduction (Investitionsabzugsbetrag) under § 7g EStG.
Go to IABPlease note: Tax rules, capacity limits and funding programmes change constantly; the legal situation applicable in each individual case is always decisive. This overview describes only general mechanisms and is not tax or legal advice – please clarify tax questions with your tax advisor. We are happy to check the current funding situation for your plans as part of your project.
Frequently asked questions
Funding for renewable energy: answered briefly
Can several forms of funding be combined?
Often yes: the EEG feed-in tariff, low-interest financing and tax benefits apply in parallel in many projects. With grants, however, there is often a rule against combining them with other grants for the same costs. We assess on a project-by-project basis what can be combined in your case.
Full feed-in or surplus feed-in – which is better?
This depends almost entirely on your on-site electricity consumption. Anyone who consumes a significant amount of electricity on site is usually better off with surplus feed-in and high self-consumption; for roofs without consumption, the higher-paid full feed-in can be more attractive. We calculate both options for you.
Do I have to apply for funding before buying?
For grant and loan programmes, as a rule yes: the application must be submitted before the project starts. The EEG feed-in tariff and tax rules, on the other hand, work without a prior application – here what counts is registration, enrolment and meeting the statutory requirements.
Is battery storage funded as well?
Storage can be financed together with the PV system in many loan programmes, and individual federal states and municipalities have repeatedly set up their own storage grants. We are happy to check whether a programme is currently open for your location – more on the technology under Storage.
What is the Mieterstromzuschlag (tenant-electricity surcharge)?
Anyone who supplies solar power from the roof of a residential building directly to its residents can, under the conditions of the EEG, receive a statutory surcharge per kilowatt-hour delivered on top of the sales revenue. You can find details and a practical example on our Tenant power page.
Does EEFA handle the application?
We support you with all technical documentation, proof of eligibility and profitability calculations and guide you through the process – from grid registration and enrolment in the Marktstammdatenregister (market master data register) to the documentation required by funding bodies and banks.
We'll work through the funding situation for you
EEG, loan, tax benefit or grant: we show you transparently which building blocks are worthwhile for your project – as things stand today, not the day before yesterday.