As a member of the European Union, Austria fully supports the European climate and energy targets. At the national level, significant steps have already been taken towards climate neutrality by 2040. Central to this is the Renewable Energy Expansion Act (EAG), which has implemented a fundamentally modernized and market-oriented subsidy system for green electricity plants, creating a stable long-term investment climate.
In 2023, approximately 600 million EUR was allocated for PV expansion through the EAG and the Climate Fund. From 2024, a reduction in VAT to zero percent on systems up to 35 kWp will simplify the process, replacing the previous support scheme introduced in 2003 with the first eco-electricity law. Additionally, a gradually increasing CO2 price for fossil-based CO2 emissions not covered by EU emissions trading began in October 2022, with households receiving reimbursements through the “climate bonus,” which redistributes revenue from CO2 taxation.
The BMK (Austrian Ministry for Climate Action) has significantly increased financial resources for transforming the energy and transport systems, creating new instruments for areas such as industrial transformation. However, nearly two-thirds of Austria’s energy currently relies on fossil fuels, a proportion targeted to reach zero by 2040. Renewable electricity, particularly PV, will play a significant role, as electricity applications are expected to become standard in the mobility and heating sectors.
Expanding photovoltaics is crucial for Austria’s transition to 100% renewable energy, aiming to provide greater independence, low-risk and environmentally friendly energy, affordable supply, and enhanced domestic value creation. The official target is 100% renewable electricity by 2030 (nationally balanced), with an expected PV increase of 11 TWh compared to 2020. Additional targets include achieving 41 TWh of PV by 2040, as stated in the draft Integrated Austrian Grid Infrastructure Plan.
The Austrian Ministry for Climate Action, Environment, Energy, Mobility, Innovation, and Technology, along with the Austrian Climate and Energy Fund, supports a broad program for renewable energy and energy efficiency research and innovation. PV systems are integral to many subsidized projects, with technological PV research receiving heightened attention in the 2023 annual energy research program.
Research Platforms and Initiatives
In 2022, public funding for energy sector research, development, and demonstration projects reached 214.4 million EUR, with approximately 9 million EUR dedicated to PV research. Energy efficiency, transmission, storage, hydrogen, and fuel cells were key focal points.
International Research Partnerships
Under Mission Innovation, Austria is a leader in programs for a net-zero industry in collaboration with Australia. In Europe, Austria coordinates the Clean Energy Transition Partnership (CETP), co-funded through Horizon Europe, and remains active in ERA-Net Cofunds and other EU research activities. For Austrian PV manufacturers, international competition is challenging, and ongoing research and innovation support will play a critical role.
Market Growth in 2023
In 2023, Austria’s domestic PV market saw substantial growth, particularly in rooftop PV systems for private, commercial, and industrial applications. This expansion included a growing number of standard ground-mounted and agricultural PV systems, doubling market figures from 2022 and leading to over 2.5 GW of PV capacity—approximately 10% of Austria’s electricity demand.
Key projects include Central Europe’s largest floating PV system, numerous building-integrated PV (BIPV) installations, and other integration solutions within the mobility sector.
Industry Representation and Advocacy
The Federal Association Photovoltaic Austria (PV-Austria) acts as the non-governmental representative for Austria’s solar energy and storage industries. PV-Austria promotes solar PV at both national and international levels, bridging business, political, and public sectors to improve conditions for PV and storage systems. In addition to organizing conferences, workshops, and industry meetings, PV-Austria engages in public relations, disseminating key PV industry information widely.
By the end of 2023, 465 companies and individuals from the PV and storage industries were members of PV-Austria.