Legal and bureaucratic aspects of a photovoltaic system – registration, feed-in tariff and taxes

The purchase and installation of a photovoltaic system represents a significant investment in a sustainable future. In addition to the technical and financial considerations, the legal and bureaucratic aspects are also crucial for the smooth operation of the system. This guide explains the most important steps in registering a photovoltaic system, provides an overview of the feed-in tariff and explains the tax obligations and advantages associated with the use of solar power.

1. Registration of the photovoltaic system: obligation and process

Registration of a photovoltaic system is required by law in Germany. It is a prerequisite for feeding electricity into the public grid and claiming the feed-in tariff. We explain the essential steps below.

As soon as your photovoltaic system is installed and made ready for operation, it must be registered with the responsible grid operator. The grid operator checks the technical requirements and connects the system to the public electricity grid. In this context, a feed-in contract is often concluded in which the conditions for feed-in and remuneration are specified.

Important note: It is advisable to inform the network operator before installation in order to coordinate technical details and avoid possible delays.

In addition to reporting to the network operator, it is mandatory to register your system in the market master data register of the Federal Network Agency. This registration must be made within one month of commissioning. The register serves to ensure transparency on the energy market and collects data on all energy generation systems in Germany.

Depending on how you operate your photovoltaic system, a business registration may be necessary. This applies in particular to larger systems or the commercial operation of the system. Operators of smaller, private photovoltaic systems are generally not considered to be operating commercially, but should clarify this with a tax advisor in individual cases.

2. Feed-in tariff according to the EEG: income from feeding electricity into the grid

The feed-in tariff is a central element of the German Renewable Energy Sources Act (EEG). It guarantees operators of photovoltaic systems a remuneration for the electricity fed into the public grid. The amount of the remuneration varies depending on the time of commissioning and the size of the system.

The feed-in tariff is adjusted at regular intervals. It is set for 20 years after the system is commissioned. System operators should make sure to check the current remuneration rates before installation. The remuneration depends on various factors, in particular the size of the system and the proportion of electricity fed into the grid.

Many operators of modern photovoltaic systems use the electricity generated primarily for their own consumption. This can be particularly attractive financially, as solar power used by the system itself is generally cheaper than purchasing electricity from the energy supplier. The excess electricity that is not used by the system itself is fed into the grid and remunerated accordingly.

It is important to analyze your own consumption structure in order to decide whether maximizing self-consumption or feeding as much as possible into the grid makes more economic sense.

3. Tax treatment of photovoltaic systems: sales tax and income tax

The installation and operation of a photovoltaic system also entails tax obligations. In particular, the sales tax and income tax treatment play a role here. Operators should familiarize themselves with the relevant regulations at an early stage or consult a tax advisor in order to take advantage of possible tax advantages and avoid mistakes.

Operators of photovoltaic systems are considered entrepreneurs from a tax perspective because they generate income by feeding electricity into the public grid. In principle, operators must therefore pay sales tax on the electricity sold. However, they have the option of opting for the small business regulation if the turnover from the feed-in was less than 22,000 euros in the previous year and does not exceed 50,000 euros in the current year. In this case, you do not have to pay sales tax, but you are also not allowed to claim input tax on purchases (e.g. the system).

Alternatively, operators can choose standard taxation. In this case, they can claim back the input tax paid when purchasing the photovoltaic system (19% of the purchase price) from the tax office, but they must pay sales tax on the electricity fed in.

Income from feeding electricity into the grid is subject to income tax. It must be declared as commercial income in the tax return. The costs incurred (e.g. depreciation of the system, operating costs) can be claimed as a tax deduction. Here, too, it is worth seeking advice from a tax advisor in order to make the most of the individual tax advantages.

Conclusion

Operating a photovoltaic system not only brings ecological benefits, but also economic ones. In order to make full use of these, it is essential to keep an eye on the legal and tax obligations. Registering the system with the relevant authorities in good time, claiming the feed-in tariff under the EEG and correct tax treatment ensure smooth operation and enable the use of tax advantages.

If you are unsure about tax or legal issues, we recommend that you contact a tax advisor or specialist lawyer to ensure that all requirements are met and financial advantages can be used.