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ENERGY

EXPLAINED: Is it worth switching to solar power in Austria?

Thinking about installing solar panels on your home in Austria? Interested in the benefits of solar energy? Here’s what you need to know.

Published: 7 October 2021 15:40 CEST
A cottage in the middle of a field with solar panels on the roof. How do you convert to solar in Austria? Photo by Alex Bierwagen on Unsplash
A cottage in the middle of a field with solar panels on the roof. How do you convert to solar in Austria? Photo by Alex Bierwagen on Unsplash

As countries around the world turn to renewable energy sources to protect the climate, the Austrian Federal Government has set its sights on solar energy.

Not only is the use of solar panels environmentally friendly, but it could also save households money on rising energy bills, which makes the switch to renewable energy an attractive option for many people.

But what exactly is solar energy? And what incentives are available from the Austrian Federal Government for installing photovoltaic panels on your home? 

Here’s what you need to know.

What is solar energy?

Solar energy is the conversion of sunlight into energy, primarily through the use of a photovoltaic (PV) system, which is then used to power thermal electricity, heating and cooling systems.

Globally, solar PV generation increased by 22 percent in 2019. This represented the second largest growth of an energy source behind wind power and ahead of hydropower.

The International Energy Agency (IEA) predicts that the United States, China and the European Union will add an extra capacity of 125 GW of solar energy per year between 2021 and 2025.

What is the attitude towards solar energy in Austria?

In July, the Austrian parliament voted in favour of the Renewable Expansion Law, which set a goal of switching to 100 percent renewable electricity production by 2030.

But for this to happen Austria has to invest in capacity expansion to create an additional 27 TWh of electricity generation.

According to Austria Solar, fossil fuels will be replaced by solar energy for heat production in the near future in Austria, with the potential for every second building in the country to be supplied with solar heat.

Currently, domestic solar heat production is around 100 GWh per year, but an IEA study says Austria could produce more than three times as much with investment into facilities.

FOR MEMBERS: Rising energy prices: How to save money on bills in Austria

To boost the number of solar panels, the City of Vienna last year introduced an amendment to planning laws that states all new residential buildings in the capital have to be built with photovoltaic panels. Previously, the rule only applied to industrial buildings.

In cases where it would be impractical to install solar panels on a building, contractors have to provide an alternative option for generating renewable energy instead.

In 2020, the Austrian Federal Government also announced it will equip one million homes with solar panels by 2030. 

How to switch to solar power in Austria

There are a few different ways to switch to solar energy in Austria, depending on where you live.

For example, Wien Energie in Vienna runs a citizen solar power project which involves people investing in a solar power plant in return for carbon-free energy.

Investors then receive interest every year which can be used towards the electricity bill or paid out as supermarket vouchers. 

The Wien Energie system is especially popular with residents that live in rented apartments in the city and don’t have the option to buy a PV system for their own home.

On a national level, a combination of state and municipal funding is available for people to install PV systems through the Climate and Energy Fund.

The fund provides one-off subsidies of between €150 and €250 per kWp for the installation of PV systems of up to 50 kW.

READ ALSO: Austria’s nationwide public transport ‘climate ticket’ now available

The investment aims to help more small and medium sized businesses, as well as individuals, switch to renewable energy.

There is also a one-time investment grant of €700 towards the installation of thermal solar systems for heating and hot water.

The application process for the subsidy starts by registering at the website and installing a PV system.

Approval of the grant will depend on the availability of the budget, which currently runs until 31 December 2022.

The Austrian Federal Government recently pledged to provide a further €20 million to the Climate and Energy Fund. 

The argument for solar power generation in Austria

While recent announcements and financial incentives by the government to encourage the installation of PV systems have been widely welcomed by environmental campaigners, there are concerns it doesn’t go far enough.

Vera Immitzer, CEO for Photovoltaic Austria, told Power Technology that photovoltaic power will have to be increased by tenfold to provide the levels of electricity generation cited by the government.

READ MORE: How will climate change impact Austria?

Immitzer said larger systems could also be installed in parking lots and open spaces, as well as on residential roofs to increase overall power generation.

The concern is that renewable energy systems currently provide 1.4 terrawatt-hours (TWh) of power, which covers just 2.5 percent of the country’s energy demand.

The government plans to generate 11 TWh of electricity via solar energy by 2030.

How much energy do Austrian households use?

According to the latest figures from Statistik Austria, the most commonly used energy source in Austria is electricity at 24.3 per cent.

This is followed by fuel wood (19.3 percent), natural gas (18.6 percent) and district heating (13.5 percent). 

Natural gas is also the second most popular energy source nationwide for heating after fuel wood. This means a significant rise in gas prices will have an impact on household budgets this winter.

However, switching to solar panels to generate electricity could help consumers save some money on energy bills.

READ MORE: Austrian government unveils ‘eco’ tax reform

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RENTING

What tenants in Austria need to know about getting their rent reduced

From construction noise to broken utilities, various issues can allow tenants in Austria to request a rent reduction. Learn the steps to follow and when legal action might be necessary.

Published: 19 September 2024 15:02 CEST
What tenants in Austria need to know about getting their rent reduced

In Austria, tenants can legally request rent reductions if their rental property’s usability is significantly impaired. 

According to MieterHilfe, the association that helps renters in Vienna, Section 1096 of the Austrian Civil Code (ABGB) regulates this. The ABGB covers rental agreements for all properties. 

The law offers protection when tenants experience issues like heavy construction noise or utility outages (such as gas, electricity, or water). However, knowing when and how to apply for a rent reduction and understanding the process can be tricky. Disputes often end up in court and are decided on a case-by-case basis.

READ ALSO: Can my landlord in Austria increase the rent whenever they want?

When you can ask for a rent reduction

If your rental property’s usability is restricted, you can apply for a rent reduction. Common examples of restricted usability often include disruptions in gas, electricity, or water supplies, major construction noise from remodelling, damage to property that prevents proper use, such as a broken heating system, and more. 

Importantly, tenants can claim a rent reduction even if the landlord is not directly responsible for the impairment. However, the extent of the usability issue must be clear, and the tenant must notify the landlord to allow them to fix the problem. Additionally, if a tenant repairs the issue, the rent reduction period ends as soon as the repair is made.

Not all impairments qualify for a rent reduction, though. For example, minor inconveniences or defects, issues that the tenant was aware of when signing the lease, impairments caused by the tenant’s actions and situations where the tenant has already waived the right to a reduction do not count.

An attic room can get extremely hot without air conditioning (Photo by Jakub Żerdzicki on Unsplash)

If there is a dispute, the court will decide the extent of the rent reduction, considering objective and subjective factors. For example, households with small children or pregnant women might receive higher reductions.

READ ALSO: Tenant or landlord: Who pays which costs in Austria?

MieterHilfe has a table with many recent cases that can give you an idea of the causes of rent reduction and the amount tenants received. For example, in one case in Vienna, the flat had significant mould infestation, and the tenants received a 75 percent rental reduction. In another case, rent was reduced by 30 percent because of “unhealthy odours” from the rubbish room that affected half of the flat.

In one case, dangerous electrical cables were accessible inside the flat, and the tenant did not have to pay any rent until the issue was fixed.

Things get more complicated when it comes to noise. In one case in 2005, the tenant got a 15 percent rent reduction due to the consequences (noise and smell nuisance) of a garage construction in the neighbouring property, but not a reduction when the next-door property was doing “normal construction work.”

Another common complaint tenants have is regarding heat, especially in Dachgeschoss apartments (attic apartments), which can get extremely hot due to the lack of ventilation and their location in buildings. In one case, the air conditioning system was positioned so unfavourably that the rooms were not cooled —the tenant got a 6 percent reduction in rent.

In another, though, the complaint regarding excessive heating was dismissed, and the tenant received no reduction because they had rented the room without any reservation or questioning, even though the place had no sun protection or air conditioning.

READ ALSO: What happens when my rental contract expires in Austria?

Legal action and rent payment strategies

Tenants must be cautious when pursuing rent reductions, the renter’s association say. Two approaches are commonly used.

You can continue paying the total rent while negotiating. The tenant informs the landlord about the issue and continues paying the total rent but reserves the right to claim a reduction later. This can be useful in avoiding eviction risks.

Or, they can reduce rent directly. This means the tenant pays a reduced amount but informs the landlord in writing. If the landlord disagrees, they may take legal action, and the court will decide the appropriate – if any – reduction.

In both cases, it is essential to notify the landlord in a verifiable form, such as a registered letter, to ensure the process is documented.

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