Tax privilege before the end

Solar power: Rush on Styrian dealers

Symbolic image

(Bild: Imre Antal)

In recent months, the generous subsidies have caused a boom in the switch to more environmentally friendly heating systems. Photovoltaics were also subsidized for years. The impending cuts in subsidies by the federal government are currently causing great uncertainty among Styrians.

Last year, there was a huge rush for federal subsidies for replacing heating systems ("Get out of oil and gas") and for energy-efficient renovations. Just before Christmas came the surprisingly sudden end: the funding pot was exhausted and there was great resentment about the lack of "advance warning". It is up to the future federal government to decide how to proceed with these funding lines. As is well known, the possible FPÖ/ÖVP coalition then raised eyebrows with planned savings: The tax privilege on photovoltaic systems - elimination of VAT - is to be abolished early, rather than at the end of 2025 as planned. Environmental subsidies, such as for boiler replacements, are to be severely restricted.

"People are very unsettled"
"We've had 500 to 600 phone calls on this topic since Christmas and people are very unsettled," says Georg Kuchar, Managing Director of EnergieAgentur GU, one of the Styrian funding agencies. He is annoyed by the lack of communication following the end of the subsidy: "Anyone who is already registered will get their money. Many people didn't realize that."

Those customers who are already registered are now being processed. However, many have waited until this year and are already irritated because they don't know what will happen next.

Anton Berger, WKO-Landes-Innungsmeister Installateure

Dieter Thyr, head of the Styrian Energy Agency, also wants "clarity as soon as possible". "There is a lot of uncertainty. We hope that there will soon be a follow-up subsidy that continues at the same level, especially for refurbishment." This is because the renovation rate in Austria is still too low.

"We lack the ability to plan"
Keyword uncertainty: this is being felt directly by the affected trade sectors. "We can't plan at the moment," says Anton Berger, guild master of Styrian plumbers. "If you tell the customer now to order the system, it will fit, and then they might lose out on the subsidy, that's problematic."

Electricians are also in a state of flux. Many Styrians are now trying to get photovoltaic systems installed quickly, as long as the tax is abolished. "We have our hands full at the moment," says guild master Christian Gaich. Many people have deliberately waited for PV modules to become cheaper this year. "Of course, they now want it implemented as quickly as possible." Gaich criticizes not so much the end of the tax privilege itself, but the lack of planning security.

However, experts agree on one thing: New subsidies are definitely coming. "There are laws stating that subsidies must be restored by 2026 at the latest. And I don't think there will be a gap in 2025," says Georg Kuchar, for example.

Steirische Förderungen

Im Land fließen Zuschüsse weiter

The biggest chunk of the financial subsidies for replacing heating systems and energy-efficient refurbishments comes from federal funds. Even though these are currently on hold, subsidies from the province of Styria can still be claimed. State subsidies are generally not affected by the changes at federal level, according to the office of the responsible ÖVP state councillor Simone Schmiedtbauer.

ÖVP State Councillor Simone Schmiedtbauer

(Bild: Pail Sepp)

Exceptions to this are those subsidies that were previously financed jointly by the state and federal governments. Specifically, this currently concerns the "Renovate for all" program (for low-income households). All other state subsidies - such as the particularly popular "small refurbishment" - can still be applied for. "These subsidies reduce operating costs and make living in Styria more affordable. At the same time, they have played a major role in our massive reduction of CO2 emissions in the building sector. And they are an important stimulus for the construction industry with its thousands of jobs," says Provincial Councillor Simone Schmiedtbauer.

She appeals to the future government: "I also hope that the successor to the current minister responsible, Leonore Gewessler, will reintroduce the federal subsidies that have been canceled."