Solar and battery incentives in Germany (2026)

A practical summary of the main tax rules and incentives for buyers of solar panels, inverters and batteries in Germany: what applies today, under which conditions, and what is still open. We checked every point against the sources listed below on the date shown. The rules are changing right now, so talk to your tax adviser before you decide.

Checked on 26 October 2026

0% VAT on PV systems and storage (section 12(3) of the German VAT Act)

Since 1 January 2023, the supply of solar modules to the operator of a PV system has been taxed at 0%. This covers essential components such as inverters, mounting systems, energy management systems and backup equipment, as well as batteries that store power from the modules; installation is covered too.

The system must be installed on or near private homes, dwellings, or public and other buildings used for activities of public benefit. If the installed gross capacity recorded in the German market master data register (Marktstammdatenregister) is no more than 30kW (peak), this condition is deemed to be met.

Only supplies to the operator of the system qualify, meaning the person who has to register it in the Marktstammdatenregister.
A written declaration from the buyer that they are the operator and that the building qualifies, or that the capacity is no more than 30kW, is sufficient proof.
Rental, maintenance and other separate services are taxed at the standard rate.
On SolarGear.eu: state in your quote request that you are the operator of the system; we confirm the applicable rate in the quote.

Income tax: exempt up to 30kWp (section 3 no. 72 of the German Income Tax Act)

Income from and private use of electricity from small PV systems is exempt from income tax. Since the 2024 Annual Tax Act, the limit of 30kW (peak) per residential or commercial unit applies to all building types, for systems commissioned or extended from 2025; the total may not exceed 100kW per taxpayer or partnership.

The exemption is mandatory. In return, the system's costs and depreciation cannot be deducted for tax purposes.

For trade tax there is an exemption up to 30kW (section 3 no. 32 of the Trade Tax Act).

EEG feed-in tariff 2026

For systems commissioned from 1 August 2026, the Federal Network Agency rates (as compiled by DGS and ADAC) are: with partial feed-in (with self-consumption) 7.70 ct/kWh up to 10kWp, 6.66 ct/kWh for the share from 10 to 40kWp and 5.44 ct/kWh from 40 to 100kWp; with full feed-in 12.22 ct/kWh up to 10kWp and 10.24 ct/kWh above that. Systems above 10kWp get a weighted blended rate.

The commissioning date decides. The rate then applies for 20 years plus the year of commissioning; rates for new systems fall by 1% every six months (1 February and 1 August).

Full feed-in must be registered with the grid operator before commissioning.
It is uncertain how long these rates apply: DGS expects 31 December 2026, the ADAC table says 31 January 2027. It depends on the EEG reform (see below).

Solar Peak Act: rules for new systems since 25 February 2025

New systems from 2kWp receive no feed-in payment during periods of negative wholesale electricity prices; those periods are added to the end of the 20-year payment period.

Until a smart metering system with a control box is installed, a new system (2 to 100kWp according to ADAC, plug-in balcony systems excluded) may feed at most 60% of its installed capacity into the grid. A battery helps absorb the midday surplus instead of curtailing it.

Power stored in the battery and fed in later is paid like solar power fed in directly (according to the consumer advice centre Verbraucherzentrale).
The Verbraucherzentrale recommends not filling the battery with the first surplus in the morning, so that it still has room at the midday peak.

Planned 2027 EEG reform: not yet adopted

On 29 July 2026 the Federal Cabinet approved a draft amendment to the Renewable Energy Sources Act (Bundestag document 21/7867). It would abolish the fixed feed-in tariff for new small systems from 1 January 2027; instead there would be a temporary transitional payment of about 5.2 ct/kWh for up to 36 months, with falling size limits in later years, and the feed-in capacity of new rooftop systems would be capped at 50%.

According to our sources (early October 2026), the second and third readings in the Bundestag were still pending, so the details may still change.

Systems commissioned by 31 December 2026 keep today's tariff for 20 years, according to the Verbraucherzentrale and ADAC.
If you want to secure today's tariff, plan the commissioning date early with your installer and grid operator.

KfW loan 270 "Renewable Energy – Standard"

The German development bank KfW finances PV systems including battery storage through programme 270, and for PV systems a roof renovation as well. Private individuals can use the loan if they feed part of the electricity they generate into the grid.

It finances up to 100% of the eligible net investment costs, with a term of up to 30 years and up to 5 initial repayment-free years. Your bank submits the application before the project starts.

It is a loan, not a grant; the interest rate depends on the term and your credit rating – current terms at kfw.de/270.
A commitment fee is charged on loan amounts not drawn after six months.

What we have not checked

Some federal states and municipalities run their own programmes for PV or storage. This page does not cover them: ask your municipality or your regional energy agency.

Please note This overview is general information, not tax advice. Rules and rates change; check your case with your tax adviser (Steuerberater), your grid operator and your bank before you buy.

Sources

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