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"). Result: It was permitted 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.
But not only systems on single-family homes are favoured:
- 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 favoured up to 15 kWp per residential/business unit.
- A maximum of 100 kWp per taxpayer or partnership is exempt from tax.
The tax exemption applies regardless of the date 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.
