Austria intends to launch a “Made in Europe” bonus for solar and energy storage projects, while also reducing renewable energy funding in 2025 to the lowest level allowed by law, the energy ministry announced this week.
Under the new plan, projects that incorporate European-made components will be eligible for up to 20% in additional funding.
This bonus will be implemented with the second funding round starting 23rd June this year.
According to the ministry, the initiative aims to bolster European manufacturing, improve energy security, and address unfair global competition.
In addition, the ministry will scale back funding in 2025 for photovoltaic, hydropower, wind, and biomass systems to the minimum level required by law. This decision is driven by the current budget constraints and shifting market conditions, especially within the solar energy sector.
A total of €70 million will be made available for investment grants under Austria's renewable energy expansion regulation. Of this amount, €60 million is designated for solar and electricity storage projects, €5 million for hydropower systems with a capacity of up to 2 MW, €1 million for wind power installations, and €4 million for biomass facilities with capacities up to 50 kW.
Moreover, the ministry is planning amendments to the Renewable Energy Expansion Act in the final quarter of the year.
Under the proposed changes, future solar funding will be limited to projects that include energy storage systems. The government also aims to phase out subsidies during times of negative market prices and transition from fixed premium models to contracts for difference.
The reforms will also focus on reducing bureaucratic hurdles and promoting hybrid power plant models, such as integrated wind, solar, and storage facilities.