If you buy a photovoltaic system in Germany and feed electricity into the grid, VAT matters at two points: when you buy the system and when you sell electricity. Since 2023 both have become much simpler for most private operators. This guide explains the zero VAT rate, correct invoices, the small business scheme, the calculation under standard taxation and registration with the tax office.<\/p>\n
Since 1 January 2023, installers charge 0 % VAT on solar modules, inverters, battery storage and installation if the system is installed on or near private homes, residential buildings, or public and other buildings used for activities serving the common good. For systems with a gross output of up to 30 kWp according to the Market Master Data Register, these conditions are deemed to be met and no further proof is required.<\/p>\n
Note the difference from a tax exemption: with the zero rate, the supply remains taxable, but the rate is 0 %. For you as a buyer, this means the net price is the final price. A battery storage system added later is also zero-rated if it is used with a qualifying PV system. Items without a direct link to the system, such as a wallbox or a heat pump, are generally charged at 19 %.<\/p>\n
Systems above 30 kWp are not automatically excluded, but the buyer must prove that the system is installed on a qualifying building. On purely commercial buildings, larger systems are charged 19 % VAT, which businesses recover as input VAT.<\/p>\n
An invoice with 0 % VAT must still contain the mandatory details under Section 14 UStG:<\/p>\n
A reference to the zero rate under Section 12 (3) UStG is recommended so the invoice remains clear later on. You usually do not need to issue your own invoices for grid feed-in: the grid operator settles by self-billing credit note, which counts as an invoice for tax purposes if both parties have agreed to this procedure.<\/p>\n
Anyone who feeds electricity into the grid for payment is a business for VAT purposes, but you can choose between two models.<\/p>\n
Small business scheme:<\/strong> If your turnover was below \u20ac25,000 in the previous year and stays below \u20ac100,000 in the current year, you charge no VAT. The grid operator pays only the net tariff, there are no advance VAT returns, and since the 2024 tax year small businesses generally no longer have to file an annual VAT return. For typical private rooftop systems this is the simplest option.<\/p>\n Standard taxation:<\/strong> You charge 19 % VAT on the feed-in tariff, which the grid operator pays on top, and pass it on to the tax office. In return you can deduct input VAT on maintenance, repairs or meter rental. In the past, recovering the 19 % VAT on the purchase price was the main reason to choose standard taxation. Because systems up to 30 kWp have been sold without VAT since 2023, this advantage has largely disappeared. If you opt for standard taxation, you are bound to it for at least five calendar years.<\/p>\n For operators under standard taxation, the calculation follows a fixed scheme:<\/p>\n A simplified example with assumed figures: a system feeds 4,000 kWh into the grid per year at 8 cents per kWh. That is \u20ac320 net plus \u20ac60.80 VAT paid on top by the grid operator. If maintenance costs of \u20ac200 net with \u20ac38 input VAT arise in the same year, you pay \u20ac22.80 to the tax office. The tax office decides how often you file advance returns, often only annually for small amounts.<\/p>\n Not for systems bought at 0 % VAT. Because no input VAT was deducted on the purchase, the electricity you use yourself is not a taxable private withdrawal. It is different for older systems bought before 2023 with input VAT deduction and run under standard taxation: there, self-consumption is still subject to VAT. If you want to move such an older system to the small business scheme, check with a tax adviser first whether an input VAT correction applies.<\/p>\n Businesses that assign a PV system to their business assets are usually under standard taxation anyway. Systems up to 30 kWp are zero-rated for them as well. For larger systems on commercial buildings, VAT is shown on the invoice and recovered as input VAT. With mixed use, partly private and partly business, input VAT is calculated proportionally. Careful documentation of all invoices and credit notes is especially important here.<\/p>\n Regardless of tax, you must enter your system in the Federal Network Agency’s Market Master Data Register within one month of commissioning and register it with the grid operator. We usually handle these steps for our customers as part of the installation.<\/p>\n For the tax office: if you choose standard taxation, submit the tax registration questionnaire via ELSTER within one month of starting the activity. For small systems whose income is tax-free under Section 3 No. 72 EStG and which are run under the small business scheme, the tax authorities generally do not require this questionnaire.<\/p>\n For most private rooftop systems: purchase and installation without VAT, feed-in under the small business scheme without VAT, no advance returns. Standard taxation mainly still makes sense for businesses and larger systems. PVPro Solar GmbH supports homeowners and businesses in Hanover, Lower Saxony, Bremen and Wolfsburg from consultation to commissioning, with invoices that show the zero rate correctly.<\/p>\n Request a free photovoltaic quote<\/a> now and start your solar system<\/a> on a sound tax footing.<\/p>\n Note: This article provides a general overview (as of October 2026) and does not replace tax advice. Please consult a tax adviser about your individual situation.<\/em><\/p>\n \n\t\t\t\t\t\tIn most cases, no. Since 1 January 2023, the supply and installation of PV systems up to 30 kWp on residential buildings is taxed at 0 % under Section 12 (3) UStG. <\/p>\n <\/div>\n <\/div>\n <\/section>\n\t\t \n\t\t\t\t\t\tYes, if the storage is connected to a qualifying PV system, including when added later. A wallbox or heat pump is not covered. <\/p>\n <\/div>\n <\/div>\n <\/section>\n\t\t \n\t\t\t\t\t\tWith the zero rate the supply remains taxable but is taxed at 0 %. A true exemption removes the supply from VAT altogether. <\/p>\n <\/div>\n <\/div>\n <\/section>\n\t\t \n\t\t\t\t\t\tSince the 2024 tax year, generally not, unless the tax office explicitly asks you to. <\/p>\n <\/div>\n <\/div>\n <\/section>\n\t\t \n\t\t\t\t\t\tRarely. Because systems up to 30 kWp are bought without VAT, there is little input VAT to recover. For businesses and larger systems it can still make sense. <\/p>\n <\/div>\n <\/div>\n <\/section>\n\t\t \n\t\t\t\t\t\tUsually not. The grid operator settles by credit note, which counts as an invoice for tax purposes. <\/p>\n <\/div>\n <\/div>\n <\/section>\n\t\t\nHow Is VAT Calculated Under Standard Taxation?<\/h2>\n
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Do I Have to Pay VAT on Self-Consumption?<\/h2>\n
What Applies to Commercial Use?<\/h2>\n
How Do I Register My Photovoltaic System Correctly?<\/h2>\n
Conclusion: PV VAT Is Simpler Than Its Reputation<\/h2>\n
Do I have to pay VAT when buying my photovoltaic system?<\/h3>
Does the zero rate also apply to battery storage and retrofits?<\/h3>
What is the difference between the zero rate and a tax exemption?<\/h3>
Do I have to file a VAT return as a small business?<\/h3>
Is standard taxation still worthwhile for a private PV system?<\/h3>
Do I have to invoice my feed-in tariff myself?<\/h3>