1. Income tax exemption retrospectively from January 1, 2022 A new provision in income tax law (§ 3 number 72 EStG) regulates an exemption from income tax for certain photovoltaic systems retrospectively from January 1, 2022. This applies to income from the operation of photovoltaic systems up to a gross nominal output (according to the market master data register) of 30 kilowatts (kW) for single-family houses and commercial properties and 15 kW per residential and commercial unit for other buildings such as apartment buildings or mixed-use properties. This rule applies to the operation of a single system as well as multiple systems up to a maximum of 100 kW (peak). Also important: This exemption does not depend on a specific use of the generated electricity.

2. Sales Tax So far, many operators of photovoltaic systems have refrained from using the small business regulation in order to be able to claim the input tax deduction. They accepted the associated bureaucracy in order to avoid the cost burden of sales tax. This is no longer necessary: the delivery and installation of photovoltaic systems, including the electricity storage, takes place due to a new regulation in sales tax law (§ 12 Paragraph 3 UStG) with a sales tax rate of zero. Everyone who installs a photovoltaic system on and near homes and public or other buildings that are used for activities serving the common good can benefit from this. These requirements are assumed if the installed gross power of the photovoltaic system is no more than 30 kW (peak).

Source: Haus & Grund