Solar PV funding: how you apply

Three funding routes

A rooftop solar PV system has three separate funding routes. The zero VAT rate cuts the tax on the invoice to 0 percent. You apply for KfW promotional loan 270 at your bank before construction.

The feed-in tariff is the legal claim after commissioning and registration of the system. The current rates sit in the tip on the 2026 feed-in tariff.

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Zero VAT rate on the invoice

Since 1 January 2023, supplies of solar modules are taxed at 0 percent. That rule stands in section 12 Absatz 3 of the Umsatzsteuergesetz. The rate applies to the supply to the operator of the system.

The zero rate also covers essential components and the battery storage. That includes inverters, battery storage, meter-cabinet upgrades and energy management. The installation work falls under section 12 Absatz 3 Nummer 4.

The rate applies to systems on or near private homes, dwellings or public and non-profit buildings. The law presumes the relief when the MaStR gross capacity is no more than 30 kilowatts. Systems on or near residential buildings remain eligible, even above 30 kilowatts.

The zero rate is not time-limited and appears on the invoice, not as a KfW application. A VAT refund does not arise, because 0 percent is already on the bill.

A repair with replacement parts falls under the zero VAT rate. A pure repair without parts plus maintenance and warranty stay at 19 percent. Maintenance and warranty also stay at 19 percent under the BMF FAQ.

Apply for KfW loan 270

KfW programme 270 Erneuerbare Energien Standard is a promotional loan, not a grant. You apply through a financing partner: your house bank, Sparkasse or cooperative bank.

You file the application before you start the project and award contracts. Planning the solar PV system before the application remains allowed.

Private persons who feed in or sell part of the electricity are eligible. The loan covers construction, extension and purchase of the PV system. With PV you can also finance the battery and a roof renovation.

The term is up to 30 years with up to 5 repayment-free years. A 20-year interest lock-in remains possible under this KfW programme.

The loan amount is agreed together with your house bank. Current terms are published on the KfW page for programme 270.

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Feed-in tariff and registers

You register the system with the grid operator and in the Marktstammdatenregister. The feed-in tariff follows after commissioning and after this registration.

The current tariff rates sit in the tip on the 2026 feed-in tariff. The storage rules sit in the tip on solar systems with battery storage.

Income tax

Income and withdrawals from PV on, at or in buildings remain tax-free. That also covers outbuildings and stands in section 3 Nummer 72 of the Einkommensteuergesetz.

The MaStR gross capacity is at most 30 kilowatts per residential or commercial unit. Per taxpayer or partnership the cap is 100 kilowatts of gross capacity. If all income from that activity is tax-free, no profit calculation is required.