Austria to grant EUR 150m to back investments in renewables in 2024

The Austrian government will allocate EUR 150 million (USD 163.38m) in investment grants in 2024 to support the deployment of renewable energy across the country.

The bulk of the funding pot, or EUR 135 million, is earmarked for solar photovoltaic systems of up to 1,000 kWp. Solar systems of up to 10 kWp will receive EUR 195 per kWp and systems of between 10 kWp and 20 kWp will be funded with EUR 185/kWp. For systems over 20 kWp, the funding will be awarded in a bidding process meaning that the projects with the lowest need for funding will be given priority.

As much as EUR 10 million of the total funding package will go for hydropower. At the same time, biomass and wind power investments will be supported with EUR 4 million and EUR 1 million in investment grants, respectively.

The available financing will be distributed through three calls -- in April, June and October. The first call will run from April 15 to April 29.

The deployment of small solar installations is further facilitated by the removal of sales tax on private photovoltaic systems of up to 35 kWp since January 1, 2024.

In addition to investment grants, Austria provides market premiums to incentivise renewables expansion. In the new market premium regulation, the funding volumes will be increased significantly again. For 2024 and 2025, a total tender volume of 1,850 MW is available for solar energy, 1,082 MW for wind power, around 40 MW for biomass and around 500 MW for hydropower. Unlike investment grants, the market premium is paid in cases of low market price of electricity to offset the difference between the market price and the maximum price determined by tender. This guarantees companies a stable investment framework in the long term. The first calls for proposals will start in May 2024.

Commenting on the announcement, climate protection minister Leonore Gewessler said: “We are well on the way to expanding green electricity; this year we have already been able to cover 85% of our electricity consumption from renewables. And that during the winter months. For comparison: in previous years we were only at around 50-60% at this point.”

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