Why you should get a photovoltaic system this year!

Obtaining clean and independent energy is already in the interest of many homeowners and tenants. Solar energy is definitely a solution in this case. Are you also interested in a photovoltaic system, but are put off by the relatively high initial costs, the effort required for installation, or the legal requirements? We would like to dispel your doubts and show you why purchasing one is worthwhile, especially this year, and what financial support you can obtain.

Four reasons for a photovoltaic system in 2023

The Renewable Energy Sources Act (EEG) has been in existence for over 20 years. On July 7, 2022, the German federal government passed a revised version, some of which entered into force on July 30, 2022. The provisions of the EEG 2023 have been fully in effect since January 1, 2023. The revised version makes photovoltaic systems significantly more attractive for private households. Besides the fact that solar energy is a renewable energy source and that installing a photovoltaic system is good for both the environment and your health, there are other reasons why investing in one is worthwhile. We'll show you four:

1. Higher feed-in tariff
   If you use the electricity generated by your photovoltaic system for more than your own consumption, feeding it into the public grid has become significantly more worthwhile since mid-2022. The feed-in tariff has increased to 8.2 cents per kWh for systems smaller than 10 kWp, to 7.5 cents per kWh for systems smaller than 40 kWp, and to 6.2 cents per kWh for systems larger than 40 kWp. This increased feed-in tariff is a clear incentive from the government to upgrade to solar this year.
2. VAT exemption on solar systems
   Photovoltaic systems have been particularly affordable since this year, as VAT is waived on solar modules, associated components, and battery storage. The prerequisite is that the system is located near a home or on public buildings used for activities that serve the public good. It is also important that you operate the solar system yourself and do not engage in commercial trading or resale of the purchased components.
   
3. More independence from price fluctuations
   Since the war in Ukraine, demand for solar energy has skyrocketed, and for good reason. This war once again illustrates how quickly things we take for granted and as a given can change. The energy market has changed dramatically, and this has had a significant impact on consumers. With a photovoltaic system, you produce (at least partially) your own electricity. This gives you a certain degree of independence, and fluctuating prices have less of an impact on you.
   
4. Financial support
   In addition to low-interest loans and repayment subsidies, since 2023, federal states and municipalities have also been offering financial support for the purchase of a photovoltaic system. Several subsidy options have been available since 2023, especially for balcony power plants. The prerequisite for every funding program at the state and municipal level is that you intend to use the solar power in the federal state where you live. You can find out which funding options are available to you on the non-profit online portal CO2online . We would like to discuss one of these funding options in more detail. KfW offers very attractive funding options, which we will outline in more detail here.
   

Financial support from KfW

KfW is a state-owned banking group that launched the Renewable Energy 270 loan program to promote solar systems. We think it's a great idea, because this loan program allows you to finance your photovoltaic system at low interest rates. The financing covers photovoltaic systems with and without battery storage, or even just battery storage. The heart of a photovoltaic system is, of course, the solar modules , which you can find in our shop in numerous variations and power levels.
In addition to the acquisition costs, planning and installation costs are also taken into account. It's also interesting to note that you can receive financial support not only for newly installed photovoltaic systems, but under certain circumstances, it's also possible to obtain loans for used systems. In this case, the system must not have been connected to the grid for a full year or its performance must be significantly modernized. Loan terms range from 5 to 30 years, and in the best case, the effective annual interest rate is 4.03% (as of early 2023). The contract is usually handled through your bank, which will also check your creditworthiness before submitting your application. Here you'll find a daily overview of the terms and conditions for borrowers. If you choose KfW as your lender, we recommend that you prepare the KfW application before speaking with your bank or savings bank. This step will facilitate the loan application process and help you reach your goal more quickly.

Get your KfW development loan in just a few steps

You can use the KfW funding assistant to prepare your loan application for your bank or savings bank. Ideally, you should contact your bank before purchasing your photovoltaic system. The further processing then takes place between your bank, which submits your application to KfW, and KfW, which concludes the loan agreement with you after approval. Generally, all common financial institutions support KfW's loan program 270, but here, too, you must do your research beforehand. In any case, it's important that you plan to install your photovoltaic system on your own, self-occupied property.

In 2023, the incentive to purchase a solar system is particularly high

There are several reasons why you should take a closer look at purchasing a photovoltaic system this year. The VAT exemption, the uncertainties in the energy market, and the potential to save a lot of money in the long term. Since investments are usually in the four-digit range or more, we fully understand that this step must be carefully considered. However, even a small photovoltaic system can be worthwhile for you. A kWh of solar power generated by your system costs you around 10 to 16 cents. In contrast, you usually pay three times as much for electricity from the socket. So check out which funding programs are suitable for you and calculate the cost-benefit ratio in the long term. In our shop , you will find high-quality solar modules and many other components that you need to build your own solar system. We are of course happy to advise you if you have any questions about our products.