From pv magazine Germany.
The debate over the design of Austria’s subsidy framework has intensified since the last funding round, which saw its budget exhausted in just 33 seconds. Thousands of applications for photovoltaic and battery storage investment grants were left unfunded. Ahead of the third and final funding call opening in October, the Austrian government plans to present a redesign of the framework, which is expected to take effect next year.
On Thursday, the Ministry of Economy and Energy fleshed out its plans for a comprehensive storage offensive. Moving forward, the primary focus of new solar funding will shift toward storage. Storage infrastructure will be given greater weight in the new grid infrastructure plan, and the permitting process for battery storage is slated for acceleration. Additionally, the ministry is planning a dedicated funding program for intelligent energy management systems (EMS) for both residential and commercial applications.
Core points of the planned reform
The ministry also detailed its vision for investment funding under the Renewable Energy Expansion Act (EAG) from 2027 onwards. The highly competitive “first come, first served” model will be scrapped.
“Funding applications should in future be able to be submitted after installation and invoicing – based on the principle of the craftsman bonus,” the ministry stated.
Crucially for the storage sector, broad funding for small, standard photovoltaic systems will be phased out. Instead, financial support will pivot to energy management systems and smart storage to drive up self-consumption and relieve grid congestion. Under the new rules, retrofitting existing solar arrays with battery storage and EMS will also become eligible for subsidies.
Specialized solar applications—such as building-integrated photovoltaics (BIPV), agri-PV, solar carports, floating solar, and noise barrier installations—will remain eligible for support, alongside the preservation of the “Made in Europe” bonus.
“The challenge is not that we generate too little cheap domestic electricity in summer. We have to make it available when we need it. Used correctly, storage brings cheap solar power from midday into the more expensive evening hours,” explained Austria’s Minister of Economy, Wolfgang Hattmannsdorfer.
The government’s primary goal is to shift excess solar generation into the evening peak, thereby minimizing the need to import expensive power.
“For this we need more properly deployed storage – from households and large battery storage systems to our pumped hydro storage,” Hattmannsdorfer added.
8 GW of storage capacity needed by 2030
A dedicated storage study commissioned by the Ministry of Economy indicates that up to 8 GW of market-oriented storage capacity by 2030 would be economically beneficial for the country. Depending on the scenario, this additional battery storage could help drive down wholesale power prices by up to €2 per megawatt-hour in 2030.
Current forecasts show Austria has around 3.2 GWh of installed battery storage—mostly in systems under 50 kWh capacity—alongside 6.2 GW of pumped hydro storage.
Beyond restructuring subsidies, the Ministry of Economy highlighted a need for regulatory action from E-Control. Much like its German counterpart, the Federal Network Agency, the Austrian regulator is currently drafting a new framework for grid fees and establishing criteria for system-serving storage.
“At the same time, the number and design of the criteria for system-serving storage envisaged in E-Control’s current draft must be reviewed again. The framework conditions must be practical and sufficiently broad so that the storage ramp-up is not slowed down by requirements that are too narrow to be met,” the ministry stated.
Industry demands action over words
The Federal Association Photovoltaic & Battery Austria (PV&B Austria) has broadly welcomed the shift in focus. The association has been lobbying for a realignment of the subsidy system and is in active dialogue with the ministry.
“We welcome the fact that the federal government is now explicitly recognizing the importance of storage for the energy system. However, it is crucial that the announced storage offensive now also translates into concrete measures,” said Vera Immitzer, Managing Director of PV&B Austria. The industry group stressed that clarity on next year’s funding mechanisms must be established quickly, emphasizing that access must be uncomplicated and available early.
However, the sector remains somewhat skeptical. Hattmannsdorfer has repeatedly promised a storage offensive since taking office but has yet to deliver on implementation. A storage study commissioned last year by PV&B Austria already underscored the critical need for flexibility in the Austrian grid. A follow-up analysis confirmed that battery storage is already capable of effectively shifting solar generation away from midday peaks to high-priced evening windows.
“We are happy to continue to be available to the ministry as a sparring partner. Now it is a matter of words being followed by deeds. The industry is ready – it is crucial that the announced storage offensive is now actually implemented,” Immitzer said.
She noted that merely tweaking PV funding will not be enough to drive the necessary capacity additions.
“It must also continue to be possible to discuss tax relief. E-Control is also called upon to create appropriate, practical framework conditions for electricity storage. And grid operators must also integrate electricity storage more strongly into their grid development plans in the future,” Immitzer added.
Meanwhile, local solar installation firm Hansesun criticized the PV funding plans as “completely inadequate,” arguing for a simple tax break for systems via a climate investment allowance. Hansesun’s Marketing Manager Andreas Müller argued that without such measures, customers will continue to lack certainty over whether their investments will actually receive funding.
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