Electricity levy when using self-generated electricity from renewable energy sources

The Austrian Government has continuously simplified and promoted using self-generated electricity from renewable energy sources (e.g. installing and operating photovoltaic systems) via several measures for companies as well. However, tax-related issues must be addressed if self-generated electricity is used e.g. via a photovoltaic system.

Legal Background

In principle, the supply and the use of electrical energy is subject to the electricity levy. As of 1 January 2020, companies are exempt from the electricity levy on self-generated electrical energy from renewable energy sources if the self-generated electrical energy is not fed into the public grid but used by the generator or by an energy community (common production plant or renewable energy community). Therefore, electricity which a company has self-generated via its own photovoltaic system (PV system) and which the company has totally used for itself, is generally not subject to the electricity levy. For the application of the exemption, the following requirements have to be met:

• The competent tax authority is to be notified in general within 4 weeks of the operation of a PV system for which the exemption is to be applied.
• In case the exemption is applied, an annual electricity levy return is to be filed.
  • Pursuant to the draft of the amendment to the Implementation Ordinance regarding the Austrian Electricity Levy, simplified documentation and declaration obligations apply to transactions from 1 July 2022, if the amount of electrical energy self-generated per year does not exceed 25,000 kWh.
• The competent authority is to be informed as soon as a tax benefit of EUR 500,000 is reached. Pursuant to the draft of the amendment to the Implementation Ordinance regarding the Austrian Electricity Levy, a limit of EUR 100,000 of the tax benefit applies to transactions from 1 January 2024.
• The tax exemption does not apply if the company did not comply with a previous Commission decision declaring an aid illegal or if the company falls under the definition “undertakings in difficulty” pursuant to Article 2 (18) EU Regulation No. 651/2014.

However, if self-generated electricity is not used by the owner of the plant but, for example, by another person, this generally qualifies as supply of electrical energy within the meaning of the Austrian Electricity Levy. Also using electricity, for example self-generated via a PV system within a group of companies qualifies as supply, if the owner of the PV system is another group company. Therefore, the electricity levy is to be calculated and paid even if the PV electricity, generated by a group company, is solely used within the group of companies.

Implications in practice

In order to use self-generated electricity from renewable energy sources (for example PV systems) exempt from electricity levy within a group of companies, there is the option to establish an energy community provided certain conditions are met since 1 January 2020. When establishing an energy community there is the option to utilise the tax exemption for self-generated electrical energy from renewable energy sources.

After establishing an energy community, not only the generator of the PV electricity but also members of the energy community may use self-generated electricity, via a PV system for example, free from electricity levy.

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