Recently, the German cabinet decided to simplify the installation of solar panels. The corresponding proposal, which came from Finance Minister Christian Lindner, was approved by the Cabinet of Ministers.
In general, many citizens did not install alternative energy sources like solar panels, because a lot of bureaucracy accompanied this. Moreover, the operating tax for solar panels is high.
This is why a certain amount of energy production will now be exempt from income tax. Likely, the installation will no longer be subject to VAT.
Bavaria, Baden-Württemberg, Hesse, Schleswig-Holstein and North Rhine-Westphalia supported the plans. The finance ministers of the five federal states underlined: “Together, we can support those who actively advocate for climate protection and energy independence by simplifying and freeing them from the tax bureaucracy.”
He added that anyone who installs alternative energy sources in their home makes a considerable contribution to independence.
The exemption from income tax applies to systems installed in single-family houses with a capacity of up to 30 kilowatts. The limit is 15 kilowatts per residential or commercial unit for multi-family buildings.
The Cabinet also relaxed several rules to increase electricity production from renewable energy sources. “These measures should help save more gas,” explained Federal Economics Minister Robert Habek.