New Tax Exemptions for Solar Panels in 2025: Save on Energy and Taxes

Starting January 1, 2025, new tax exemption rules for income generated by photovoltaic systems will take effect in Germany. These changes were introduced through § 3 Nr. 72 EstG, amended by the 2024 Annual Tax Act.

Key Changes:

1. Increased Power Limit:
   • The maximum allowable gross capacity for tax exemption is now 30 kW per residential or commercial unit. Previously, this limit was 15 kW for certain buildings.

2. Overall Capacity Cap:

1. • The total gross capacity for all systems owned by a single taxpayer or partnership must not exceed 100 kW.

3. Simplified Tax Reporting:

1. • For these systems, there’s no longer a need to calculate profits, submit an EÜR (income-expense statement), or pay VAT.

4. Asset-Managing Partnerships:

1. • Operating such a system will not trigger a commercial classification of rental income. This means rental income remains exempt from trade tax (§ 7 Satz 1 GewG).

5. Applicability of the New Rules:

1. • The new rules apply to systems that are purchased, put into operation, or expanded after December 31, 2024.

Why You Should Consult a Lawyer

Although the new rules simplify tax procedures, applying them in practice may still raise questions. It’s especially crucial to understand how power limits and tax exemptions impact your specific situation.

To avoid mistakes and make the most of the tax benefits, it’s strongly recommended to consult a qualified tax lawyer. A specialist can help navigate the details, ensure all factors are considered, and properly handle the paperwork.

Don’t miss the opportunity to save on taxes and contribute to sustainable energy — just make sure to approach this matter carefully and well-prepared!