Compared to the first quarter of 2024, PV demand fell significantly at the beginning of 2025.
PV Austria attributes the slowdown to recent policy changes. The government, which assumed office in March 2025, ended a VAT exemption for small PV systems earlier than planned, citing budget balancing needs. PV Austria described the revenue projections as “uncertain.” Additionally, the government extended and tightened the Energy Crisis Contribution for Electricity, impacting medium-sized electricity producers, and reduced environmental subsidies.
“Instead of using the growing renewable energy sector to generate additional funds for budget consolidation, successful companies are being penalized,” said Herbert Paierl, CEO of PV Austria. “Those who choke off PV and storage companies today will import unemployment tomorrow and overpriced electricity from abroad the day after.”
PV Austria urged the government to pass the Electricity Industry Act and the Renewable Energy Expansion Acceleration Act before summer 2025. These laws are critical for restructuring the energy system and ensuring affordable energy without requiring additional state funding. Paierl emphasized: “If the industry is already confronted with drastic budget cuts and planning security is being taken away, at least the announced laws must be passed before the summer.”
The association highlighted growing uncertainty in the sector, noting that projects are being paused and financing costs are rising. PV Austria warned that current policies could jeopardize affordable energy goals, lead to job losses, and hinder Austria’s position as a hub for green technology innovation. The organization stressed that fostering growth in the renewable energy sector could support budget goals without relying solely on new taxes.
