Several European countries have successively introduced subsidies for rooftop solar energy (Ireland, Austria, the United Kingdom, and Germany)

In March and April 2025, several European countries successively introduced subsidy policies for rooftop solar power generation. Policies in Ireland and Germany continued and implemented existing plans, while Austria and the UK launched new subsidy programs aimed at encouraging residents and businesses to install photovoltaic (PV) systems and promote renewable energy development.

Ireland: Home Rooftop Renovation Solar Subsidies

The Sustainable Energy Authority of Ireland (SEAI) continues to provide subsidies for residential rooftop PV through the Microgeneration Support Scheme. Eligible applicants are homeowners (including private landlords) whose homes were completed and occupied before December 31, 2020, and who have not previously received PV subsidies for the same electricity meter point. The subsidy amount is tiered by system capacity: €700 per kWp for systems up to 2 kWp, and an additional €200 per kWp for every incremental 1 kWp over 2 kWp, with a maximum of €1, 800 (for a 4 kWp system). The government announced that the subsidy cap would be raised to€1, 800 starting in 2025 and is expected to gradually decrease each year (by a maximum of €300 per year), with the program slated to end in 2029. Once approved, applicants must complete the installation and submit an engineering acceptance report within 8 months to receive the subsidy.

Policy Highlights:

• Applicable Objects

Homes must be residential properties built and occupied before 2021. Commercial or non-residential buildings (e. g. , public buildings, sports clubs) are also eligible to apply.

2. Subsidy Amount

0-2 kWp: €700/kWp 2-4 kWp: an additional €200 per incremental 1 kWp Subsidies are tiered based on the PV system's peak power (kWp). The maximum subsidy cap is €1, 800 (in 2025). The subsidy will decrease by €300 annually, expected to cease in 2029.

Austria: €60 Million Rooftop PV Subsidy Program

The Austrian energy agency OeMAG has launched its 2025 rooftop PV subsidy program, totaling €60 million

(from the Renewable Energy Expansion Act budget). Subsidies are tiered by system size: €160/kW for systems under 10kW (total budget €5 million); €150/kW for 10–20kW systems (also €5 million); €140/kW for 20–100kW systems (budget €15 million); and €130/kW for large systems over 100kW (budget €15 million). Energy storage systems are also eligible for funding, with a subsidy of €150/kWh. The first application window opened on April 24 and will continue until May 8. Two subsequent rounds of additional funding will introduce a "Made in Europe" incentive: the second round will offer an additional 20% subsidy for projects using EU-produced components, with a total investment of €12 million, and the remaining €8 million for the third round of applications in October.

Policy Highlights:

• Subsidy Tiers

≤10 kW: €160/kW (budget €5 million) 10-20 kW: €150/kW (budget €5 million) 20-100 kW: €140/kW (budget €15 million) 100 kW: €130/kW (budget €15 million) Energy storage systems: €150/kWh

2. Application Schedule

First round of applications closes on May 8, 2025, allocating 2/3 of the budget (€40 million). The second round (2025) will include a "Made in Europe" bonus: systems using European components will receive a 20% increase in subsidies. The third round is scheduled to begin in October 2025, with a remaining budget of €8 million.

UK: Multiple Subsidies to Drive Surge in Small-Scale Solar Installations in 2025

The UK government supports rooftop solar installations through several initiatives. The ECO4 scheme (2022– 2026), targeting low-income and vulnerable households, provides grants for energy efficiency improvements, including solar panel installation. The newly launched Warm Homes Scheme, set to be implemented in April 2025, will offer solar installation funding for social housing residents, low-income households, and tenants. The UK continues to apply a 0% VAT rate on the installation of solar panels and energy storage equipment for residential properties (effective from April 2022, lasting until at least 2027). Additionally, rooftop PV owners can sell surplus electricity back to grid operators through the Smart Export Guarantee (SEG) scheme, earning revenue from electricity sales.

Current Policies:

• Financial Support

0% VAT: Solar panels and energy storage equipment are tax-exempt, saving up to £2, 850 for a 4kW system. Smart Export Guarantee (SEG): Annual income from exporting surplus electricity back to the grid is approximately £80-£170.

2. Specific Programs

ECO4 Scheme (until March 2026): Provides free solar panels for low-income households. Warm Homes Scheme (launching April 2025): Covers installation costs for social housing, low- income households, and tenants. Warm Homes Nest Scheme: Long-term program supporting home energy efficiency improvements (including solar).

3. Long-Term Goals

Reduce installation barriers through subsidies to accelerate the adoption of renewable energy.

Germany: Rooftop Solar Tender Launched

The German Federal Network Agency (BNetzA) has launched a new round of rooftop PV tenders, with a total volume of approximately 263. 236 MW. According to the latest Renewable Energy Act, participating projects must have a minimum size of 1 MW or more. This tender round uses a "bid price" format, with a maximum allowable bid of €0. 104/kWh. Revisions to the Renewable Energy Act (Solarpaket) are currently under parliamentary review. As policy details are finalized, the German rooftop PV market is expected to see a larger- scale expansion.

Policy Highlights:

• Tender Volume

The current first tender round capacity is 282. 7 MW. If the "Solar Package I" bill is approved by the EU, the total tender volume in 2025 will increase to 1. 8 GW (originally planned 1. 1 GW).

If not approved by the EU, the annual tender volume will remain 282. 7 MW.

2. Project Requirements

Minimum capacity of 1001 kW (proposed to be reduced to 751 kW, pending EU approval). Electricity price cap of €0. 104/kWh.

3. Timeline

Bids due by June 2, 2025 (originally June 1, extended due to Sunday). The previous tender selected 143 projects (total capacity 317 MW).

Policy Background:

The bill aims to promote the expansion of commercial and industrial rooftop PV, but needs to balance EU regulations.

Summary

In 2025, various European countries are accelerating the adoption of rooftop solar through differentiated subsidy policies:

Ireland: Focused on residential self-consumption, with declining subsidies year-on-year and restrictions on repeated applications

Austria: Tiered subsidies cover all scales, coupled with "Made in Europe" incentives to support the local industry

United Kingdom: Reduces installation barriers for low-income groups through tax reductions, cashback, and special programs (e. g. , ECO4)

Germany: Expands commercial and industrial rooftop PV scale through a tender mechanism, with policy adjustments dependent on EU approval

These national policies all demonstrate a continued commitment to renewable energy, while also considering market adaptability and fiscal sustainability.