The third and final funding round for solar and energy storage systems in Austria for 2026 has concluded. The Renewable Energy Expansion Act (EAG) funding agency announced on Wednesday that it had approved 7,007 applications out of 41,322 submissions, representing approximately €192 million ($212.8 million) in requested subsidies.

The rebates cover up to 30% of eligible investment costs, subject to fixed subsidy rates per kW of installed solar capacity and per kWh of battery storage.

Under the EAG, applications for smaller PV systems are approved on a first-come, first-served basis. In Category A, covering systems up to 10 kW, the available budget of €30.5 million was sufficient only for applications submitted within the first 29 seconds of the funding window opening at 5 p.m. on Oct. 8, according to the agency.

Funding for Category B, covering systems between 10 kW and 20 kW, was exhausted even faster, after just 18 seconds. Systems in Categories A and B are eligible for investment subsidies of €150/kW and €140/kW, respectively, as well as €150/kWh for battery storage.

In Categories C and D, applications are ranked according to the amount of funding requested. In Category C, projects requesting up to €97/kW were approved, while the threshold for Category D was €94/kW.

Annual installation target likely to be missed

Industry association PV&B Austria reiterated its criticism of the Ministry of Energy following the announcement.

“Whether it’s 33 seconds or 29 – if the federal government truly intends to secure Austria’s independent energy supply, we need clear facts and a modern legal framework for the subsidy system from 2027 onwards,” said Vera Immitzer, managing director of PV&B Austria. “The declining figures for new photovoltaic installations are clear proof that an entire industry is left in limbo, despite high demand.”

The effects of the current subsidy system are becoming apparent in Austria’s solar market. Following 1.6 GW of new installations in 2025, PV&B Austria expects approximately 1 GW of additional PV capacity in 2026, a year-on-year decline of about 38%.

This would mark the first time Austria has missed the annual installation target of at least 1.1 GW set out in the EAG. However, the large number of subsidy applications suggests that demand for solar and battery storage remains strong.

Draft EAG amendment expected next week

Austria’s State Secretary for Energy, Elisabeth Zehetner, has announced plans for a fundamental overhaul of the existing subsidy system.

“If a matter of just a few seconds determines whether a small-scale system receives funding, then we must change the rules of the game,” Zehetner said. “We are therefore developing a new model designed to provide greater planning certainty and place a focus on intelligent storage solutions. We are currently preparing the legislative implementation.”

The planned EAG amendment would replace traditional investment subsidies for PV modules with a storage bonus. The new incentive would support both battery storage installed alongside new PV systems and storage retrofits for existing installations.

Zehetner outlined the main elements of the proposed reform shortly after the October funding round. According to the Ministry of Economy, Energy and Tourism, the government intends to replace individual funding calls with fixed application deadlines with a continuous application process, allowing project owners to apply for subsidies after completing their installations.

The proposed system would also place greater emphasis on European manufacturing. New battery storage systems installed alongside PV systems would be required to use European-made inverters. For storage retrofits to existing PV installations, an additional bonus for European-made equipment would remain available. The current funding round allocated €7.6 million for this purpose.

Zehetner also said applicants who missed out on funding in the latest round would have another opportunity to apply.

“Under current planning, projects featuring intelligent storage systems that are commissioned on or after November 1, 2026, will be eligible for submission under the new 2027 framework, provided they meet the updated funding requirements,” she said.

PV&B Austria remains critical of the proposed changes. Although the EAG amendment is expected to be introduced in parliament next week, the association warned that the industry could still face weeks of uncertainty before receiving the details needed for investment planning.

“Crucial details regarding the planned funding reform from 2027 – as well as the interim solution announced for all projects completed from November 1 onwards – are still missing,” the association said.

PV&B Austria called for the swift adoption of the EAG amendment, including appropriate transitional provisions.