PVTIME – Austria’s Ministry of Economy and Energy has announced a major policy change to support the country’s energy transition. A 20% government subsidy will now be offered to photovoltaic (PV) and energy storage projects using European-made modules, effective for new projects receiving a second round of funding on 23 June.
The move continues a trend set by a similar subsidy for European solar panel manufacturers last year, providing significant support for Austria’s domestic PV industry. While not naming specific markets, the policy is seen as a response to what Western manufacturers call “unfair global competition”, likely referring to lower-priced Asian PV production.
Economy and Energy Minister Wolfgang Hattmannsdorfer stressed that the “Made in Europe” subsidy is key, representing regional added value and a commitment to Europe as an industrial base. This strategy will be complemented by the strengthening of hydropower and the expansion of energy storage and PV projects.
In terms of funding, Austria has outlined its priorities for 2025. Of the €70 million budget, €60 million (about $68.1 million) will go to PV systems and energy storage. The remainder is earmarked for ≤2MW hydropower plants (€5 million), ≤50kW biomass plants (€4 million) and ≤1MW wind turbines (€1 million). This is a significant reduction from last year’s €150 million investment in renewable energy, including €135 million in direct PV support. State Secretary for Energy Elisabeth Zehetner said public funds must be used more efficiently, with a shift from large-scale spending to targeted support for the supply chain.
In addition, the government will revise the 2025 Electricity Investment Subsidy Regulations in Q4. New rules will require PV systems to have energy storage to qualify for subsidies, stop payments during periods of negative prices and prioritise the development of hybrid power plants. These policy changes will shape Austria’s energy sector, bringing both opportunities and challenges.
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