(2023) Photovoltaics: Operating and selling the system are business income

Even before 2022, the tax authorities allowed concessions for operators of small photovoltaic systems, but only for systems up to 10 kWp: Upon written application by the taxpayer, it could be assumed that a system was not operated with the intention of making a profit ("hobby option"). As a result, it was possible to forgo the preparation and submission of an income statement, and profits no longer had to be taxed.

Since 1 January 2022, photovoltaic systems on single-family homes (including roofs of garages and carports as well as other outbuildings) up to 30 kWp have been legally exempt from tax.

However, not only systems on single-family homes are eligible:

• Systems installed on buildings not used for residential purposes (e.g. commercial property, garage courtyard) are also exempt from tax. The limit here is also 30 kWp.
• For systems on multi-family houses and mixed-use buildings, the limit is 15 kWp per residential or commercial unit.
• In addition, photovoltaic systems on buildings predominantly used for business purposes are eligible up to 15 kWp per residential/commercial unit.
• A maximum of 100 kWp per taxpayer or partnership is exempt from tax.

The tax exemption applies regardless of when the photovoltaic system was commissioned for income and withdrawals generated since 1 January 2022.

The simplification rule from 2022 is structured differently from the previous hobby option: Taxation is now compulsorily waived and not just as part of an option. A "hobby application" is therefore no longer relevant. This is regulated in § 3 No. 72 EStG in the version of the Annual Tax Act 2022.