Zero-rate VAT on photovoltaic products under Section 12(3) of the German Value Added Tax Act (UStG)

Since 1 January 2023, a 0% VAT rate has applied in Germany, subject to certain conditions, to photovoltaic systems, solar modules, battery storage systems and essential components of a photovoltaic system.

Legally speaking, this is not a VAT exemption but a zero rate pursuant to Section 12(3) of the German Value Added Tax Act (UStG).

Price labelling in our online shop

For products eligible for tax relief, you may – provided the legal requirements are met – select the 0% VAT rate.

If you do not meet the requirements, you will purchase the goods at the standard VAT rate of 19 per cent. This applies in particular to commercial resellers, intermediaries and products not intended directly for a VAT-exempt photovoltaic system.

In the case of a mixed shopping basket, the applicable tax rate is calculated individually for each item in the order. Tax-exempt items can therefore be charged at 0 per cent, whilst non-exempt items are charged at 19 per cent VAT.

For deliveries outside Germany, the zero rate under Section 12(3) of the German Value Added Tax Act (UStG) does not apply. The VAT treatment of such deliveries is governed by the relevant statutory provisions.

Conditions for the zero tax rate

By selecting the 0% VAT rate and completing your order, you confirm that the following requirements are met:

  • You are the operator or future operator of the photovoltaic system.

  • The products ordered are to be used for your own photovoltaic system and are not intended for commercial resale.

  • The photovoltaic system will be installed on or near a private dwelling, a flat or a building used for public or charitable purposes.

Alternatively, the conditions regarding the building are deemed to be met if the installed gross capacity of the photovoltaic system, as recorded in the Market Master Data Register, is or will be no more than 30 kW (peak).

The tax relief may also apply to components supplied for the extension, repair or replacement of parts of an existing photovoltaic system that is already eligible for tax relief.

Eligible components

In addition to solar modules and battery storage systems, the following photovoltaic-specific components in particular may be subject to the zero tax rate:

  • inverters and micro-inverters;

  • Roof, façade and balcony mounting systems;

  • Support structures for solar panels;

  • Energy management systems;

  • Solar cables and PV connectors;

  • Feed-in sockets;

  • Smart meters and photovoltaic-specific metering equipment;

  • Backup boxes and emergency power supply equipment;

  • necessary replacement and expansion components.

General accessories and equipment not specifically intended for photovoltaic use will continue to be subject to the statutory VAT rate of 19 per cent.

Battery storage systems and portable power stations

Battery storage systems qualify for preferential treatment if, in a specific application, they are intended to store electricity from a preferential photovoltaic system.

For storage systems with a usable capacity of at least 5 kWh, this intended use is generally assumed. For smaller or mobile storage systems, additional evidence may be required to show that the device is used exclusively for storing electricity from eligible solar panels.

Consequently, the zero tax rate cannot automatically be applied to every mobile power station.

Accuracy of the information

You confirm that all information regarding the photovoltaic system, the intended use of the products ordered and your status as a system operator is complete and truthful.

Should it subsequently transpire that the conditions set out in Section 12(3) of the German Value Added Tax Act (UStG) were not met, GENERATOR.EU may charge the VAT legally due retrospectively. The corresponding difference will be invoiced to the invoice recipient as an additional charge.

Tax-relevant information may be provided to or submitted to the relevant tax authorities to the extent required by law.

Verification of orders

GENERATOR.EU reserves the right to check orders against the requirements for the zero rate of VAT and to request additional information or evidence in the event of any ambiguities.

In the event of obviously incorrect or contradictory information, the VAT rate may be adjusted to 19 per cent or the order may be cancelled following consultation with the customer.

Any legislative changes occurring before the delivery is completed will be taken into account in accordance with the applicable VAT regulations.

Date: 3 September 2026