PV Subsidies 2026: All Grants and Programs at a Glance
The funding of photovoltaic systems in Germany in 2026 rests on three pillars: the statutory feed-in tariff under the EEG (Renewable Energy Sources Act), zero-rate VAT on purchases, and low-interest KfW loans. There are no direct investment grants from the federal government for standalone PV systems — but many municipalities offer their own programs.
This article lists all current remuneration rates, explains the funding mechanisms in detail, and shows how different programs can be combined. Particularly relevant: from 2027, the fixed feed-in tariff for new small-scale systems is set to be abolished — making 2026 likely the last year with a guaranteed 20-year remuneration.
1. Feed-in Tariff 2026 (EEG)
The feed-in tariff is the most important ongoing subsidy for PV systems. It is guaranteed for 20 years from commissioning plus the remaining year of installation. Rates are reduced by 1% every six months (EEG degression under §49 EEG 2023).
Tariff Rates February – July 2026
| System Size | Partial Feed-in (Self-consumption) | Full Feed-in |
|---|---|---|
| ≤ 10 kWp | 7.78 ct/kWh | 12.35 ct/kWh |
| 10–40 kWp | 6.74 ct/kWh | 10.35 ct/kWh |
| 40–100 kWp | 5.50 ct/kWh | 10.35 ct/kWh |
Tariff Rates August 2026 – January 2027
| System Size | Partial Feed-in (Self-consumption) | Full Feed-in |
|---|---|---|
| ≤ 10 kWp | 7.71 ct/kWh | 12.23 ct/kWh |
| 10–40 kWp | 6.67 ct/kWh | 10.25 ct/kWh |
| 40–100 kWp | 5.45 ct/kWh | 10.25 ct/kWh |
Partial Feed-in or Full Feed-in?
With partial feed-in, the household consumes part of the generated electricity itself and feeds the surplus into the grid. The tariff is lower, but every self-consumed kilowatt-hour saves the full grid electricity price (approx. 35 ct/kWh).
With full feed-in, all generated electricity is fed into the grid. The tariff is higher, but the household continues to draw all its electricity needs from the grid.
For most single-family homes, partial feed-in is more economical, because the avoided grid purchase (35 ct/kWh) is worth significantly more than the difference in feed-in tariffs. Full feed-in is mainly worthwhile for large roof areas with low self-consumption — such as commercial buildings or holiday homes.
Switching possible: Since 2023, operators can switch annually between partial and full feed-in — splitting on the same system is also possible by setting up separate meter circuits.
Systems Over 100 kWp
For systems over 100 kWp, the fixed feed-in tariff does not apply. These systems must market their electricity via direct marketing on the electricity exchange. In addition, they receive a market premium that compensates the difference between the average exchange price and a defined "applicable value."
Change from 2027: End of Fixed Tariffs
From January 1, 2027, the fixed feed-in tariff for new small-scale systems is to be abolished and replaced by market-oriented models. Anyone who commissions a system in 2026 will secure the guaranteed tariff rates for 20 years. Existing systems are not affected by the change.
Urgency: If you are planning a PV system, you should aim for commissioning in 2026 if possible. The 20-year tariff guarantee provides planning security that will no longer be available after the transition to market models.
2. VAT: 0% on PV and Storage
Since January 1, 2023, the purchase and installation of photovoltaic systems and battery storage in Germany is subject to a VAT rate of 0% (§12 para. 3 UStG — German VAT Act).
What Is Covered?
| Component | 0% VAT |
|---|---|
| Solar modules | Yes |
| Inverter | Yes |
| Mounting system and materials | Yes |
| Battery storage | Yes |
| Installation and mounting | Yes |
| Electrical installation (meter cabinet, cables) | Yes |
| Wallbox / charging station | No (19% VAT) |
| Roof renovation before PV installation | No (19% VAT) |
Requirements
- The system must be installed on or near a residential building
- System size up to 30 kWp (gross capacity)
- Applies to private individuals and businesses equally
Financial Impact
For a typical 10 kWp system with storage costing 20,000 € net, the zero-rate taxation saves 3,800 € in VAT (19% of 20,000 €). This benefit applies automatically — no application is required.
3. KfW Loan 270: Renewable Energies
The KfW Loan 270 finances investments in renewable energies, including PV systems and battery storage. KfW (Kreditanstalt fuer Wiederaufbau) is Germany's state-owned development bank.
| Feature | Details |
|---|---|
| Loan amount | Up to 100% of investment costs |
| Effective annual interest rate | From 3.73% (credit-dependent, as of March 2026) |
| Term | 5–20 years |
| Repayment-free initial years | 1–3 years possible |
| Application | Via your house bank (not directly with KfW) |
Is the KfW Loan Worthwhile?
The KfW 270 loan currently offers no interest rate advantage over regular bank loans. The effective annual interest rate is 3.73% in the best case — comparable personal loans from direct banks are sometimes cheaper. The loan is mainly worthwhile if your house bank cannot offer better financing or if a long repayment-free initial period is desired.
Tip: Always compare the KfW loan with the financing offer from your solar installer and an independent personal loan. Many solar installers offer financing through partner banks at more attractive terms.
4. Income Tax Exemption for PV Revenue
Since 2022, income from operating a PV system up to 30 kWp (single-family home) or 15 kWp per residential unit (multi-family buildings, max. 100 kWp total) has been exempt from income tax in Germany (§3 No. 72 EStG — German Income Tax Act).
This means:
- No income tax on the feed-in tariff payments
- No trade registration required
- No VAT obligation (small business regulation is automatically waived)
- No income/expense report (Anlage EUeR) needed in the tax return
For system operators, this eliminates all the tax-related administrative burden that was previously associated with PV operation.
5. Regional Funding Programs
While the federal government does not provide direct investment grants for PV, many cities, counties, and municipalities offer their own programs. These can generally be combined with the feed-in tariff and the KfW loan.
Examples of Municipal Subsidies
| Region | Subsidy | Condition |
|---|---|---|
| Berlin | 500–4,750 € for PV + storage | Combination of PV + battery storage |
| Cologne | 1,500–2,500 € (PV), 500–1,300 € (storage) | System size and storage capacity |
| Stuttgart | Up to 600 €/kWp installation costs | Location within city limits |
| Munich | 600 €/kWp (max. 6,000 €) | Rooftop system on residential building |
| Regensburg | 100 €/kWp, max. 1,500 € | Private individuals |
| Duesseldorf | 400 €/kWp + 250 €/kWh storage | New installation |
Note: Municipal funding programs change frequently and are often budget-limited. Check current availability before placing an order. An overview is provided by the BMWK funding database (German Federal Ministry for Economic Affairs).
6. Battery Storage Subsidies
For battery storage, there is no separate federal investment grant in 2026. However, storage systems benefit from:
- 0% VAT on purchase (savings of approx. 1,500–2,500 € for typical storage systems)
- KfW Loan 270 — storage is eligible when installed together with a PV system
- Municipal grants — many cities subsidize PV + storage as a combination
Cost-effectiveness Without Direct Grants
Even without an investment grant, battery storage is increasingly cost-effective: thanks to 0% VAT and falling storage prices (approx. 500–800 €/kWh in 2026), the payback period is 10–14 years — within the typical warranty period of 10 years.
7. Special Cases and Combinations
PV + Heat Pump
Anyone installing a PV system and a heat pump simultaneously can combine both funding programs:
| Measure | Subsidy |
|---|---|
| Heat pump | KfW 458 — up to 70% grant |
| PV system | 0% VAT + feed-in tariff |
| Storage | 0% VAT + municipal grant if applicable |
The combination of PV + heat pump is economically particularly attractive: the solar electricity reduces the heat pump's operating costs, and each saved kilowatt-hour is worth ~27 ct — significantly more than the feed-in tariff.
Balcony Power Plants
For plug-in mini PV systems (balcony power plants), the same tax benefits apply:
- 0% VAT on purchase and accessories
- Simplified registration since 2024 (only market master data register required)
- Power limit: 800 W inverter, max. 2,000 Wp module capacity
- Some municipalities subsidize balcony power plants with grants of 100–300 €
Tenant Electricity
Landlords who supply PV electricity directly to tenants benefit from the tenant electricity surcharge (Mieterstromzuschlag):
- Surcharge on the feed-in tariff for electricity supplied to tenants
- System size up to 100 kWp
- Simplified billing since EEG 2023
Calculation Example: Typical 10 kWp System
A family installs a 10 kWp system with 10 kWh battery storage on their single-family home. Commissioning: March 2026.
Investment Costs
| Item | Net Amount | VAT | Final Amount |
|---|---|---|---|
| PV system 10 kWp | 12,000 € | 0% | 12,000 € |
| Battery storage 10 kWh | 7,000 € | 0% | 7,000 € |
| Total investment | 19,000 € |
Without the VAT exemption, an additional 3,610 € would apply.
Annual Returns (Partial Feed-in)
| Item | Calculation | Amount/Year |
|---|---|---|
| Self-consumption (4,000 kWh × 35 ct) | Avoided grid purchase | 1,400 € |
| Feed-in (5,000 kWh × 7.78 ct) | Feed-in tariff | 389 € |
| Annual return | 1,789 € |
Payback Period
| Scenario | Payback Period |
|---|---|
| Without storage (12,000 €) | approx. 8 years |
| With storage (19,000 €) | approx. 11 years |
| With municipal grant (e.g. 2,000 €) | approx. 10 years |
Summary: All Subsidies at a Glance
| Subsidy | Type | Value |
|---|---|---|
| Feed-in tariff (20 yrs.) | Ongoing remuneration | 7.78 ct/kWh (partial, ≤ 10 kWp) |
| 0% VAT | Purchase price savings | approx. 3,000–5,000 € |
| Income tax exemption | Tax savings | Revenue tax-free (≤ 30 kWp) |
| KfW Loan 270 | Low-interest loan | From 3.73% eff. annual rate |
| Municipal grants | Investment grant | 100–6,000 € (regional) |
Conclusion: PV subsidies in 2026 consist of several building blocks that complement each other. The single most important benefit is the 0% VAT, which applies automatically and requires no application. The feed-in tariff provides planning security for 20 years — likely the last year in this form. If you are planning a PV system, 2026 offers strong arguments not to delay the installation any further.
Photovoltaics Article Series
| No. | Article | Topic |
|---|---|---|
| 1 | Photovoltaics: The Complete Guide | Pillar page |
| 2 | Planning a Solar System: Step by Step | Planning |
| 3 | From Photon to Volt | Physics of the solar cell |
| 4 | Structure of a PV System | Components |
| 5 | AC/DC: Inverters and Power Conversion | DC to AC |
| 6 | Calculating PV Yield | Yield calculation |
| 7 | Optimizing Self-Consumption | Increasing self-consumption |
| 8 | PV Subsidies 2026 | You are here |
| 9 | Power Electronics: Inverters and DC-DC Converters | Technical details |
| 10 | Hybrid Inverters | PV, storage, and grid |
| 11 | AC or DC? System Topologies | AC vs. DC coupling |
| 12 | Solar Cells: Classification | Cell technologies |
| 13 | Crystalline Solar Cells | Silicon technology |
| 14 | Thin-Film Solar Cells | Alternative technologies |
Sources
- Bundesnetzagentur: EEG-Vergütungssätze
- Finanztip: Photovoltaik-Förderung 2026
- energie-experten.org: Einspeisevergütung 2026
- KfW: Erneuerbare Energien – Standard (Kredit 270)
- BMWK: Förderdatenbank
- ADAC: Photovoltaik-Förderung 2026
- Solarserver: Förderung für Photovoltaik 2026
Calculate Your Solar Yield Now
With our free solar calculator, you can determine the expected yield and cost-effectiveness of your PV system based on PVGis data.