LEVONOVA ENERGY

Funding for Commercial PV Systems: Grants, Loans, and Tax Benefits at a Glance

Businesses investing in a commercial photovoltaic system can benefit from a wide range of funding options. Federal, state, and municipal programs support the investment through low-interest loans, direct grants, and tax advantages — all designed to accelerate the return on your solar investment.

Generating your own solar power makes businesses more self-sufficient and sustainably reduces energy costs. With the right funding in place, a commercial PV system becomes even more attractive. Below you will find a comprehensive overview of all available funding options for PV systems in businesses, from direct grants and subsidized loans to feed-in tariffs and tax incentives. We also explain how to optimally combine funding sources, what to keep in mind when applying, and where professional support is available.

Overview: How Businesses Benefit from PV Funding

The government supports businesses in multiple ways when investing in a commercial photovoltaic system. Here are the key funding options at a glance:

Investment grants from federal states and municipalities directly reduce upfront acquisition costs
KfW subsidized loans enable low-interest financing with initial interest-only periods
Tax advantages such as the new declining-balance depreciation (degressive AfA) deliver significant write-offs in the early years
The statutory feed-in tariff guarantees revenue for surplus electricity over 20 years
Regional funding programs and tax-free self-consumption further improve overall profitability

Direct Grants — Funding for Commercial Solar Systems

Investment grants are non-repayable funding contributions that directly reduce the acquisition cost of a PV system. At the federal level, there are currently no direct grant programs specifically for commercial photovoltaic installations. However, a number of German federal states and municipalities do support businesses with grants for commercial solar systems. Funding is typically provided either as a fixed amount per kW of installed capacity, or as a percentage of investment costs often subject to a cap. Conditions vary by location and program, and funds are frequently limited, making early application essential.

Example: Berlin — "SolarPlus" Program

Grants for preparatory measures and specific PV installations. Small businesses receive reimbursement of up to 65% of eligible costs, medium-sized businesses up to 55%, and large businesses up to 45%. Eligible measures include feasibility studies, consultations, battery storage systems, and PV installations on listed buildings. (Note: the direct purchase of PV modules is not subsidized under this particular program.)

Example: Lower Saxony — Climate Protection and Energy Efficiency

Businesses receive grants of 30–70% of PV investment costs, depending on the specific measure and business size. A significant share of costs is therefore covered by the state. (Freelancers are excluded from this program.)

Further regional funding: Many German federal states and cities offer their own solar funding programs. Some municipalities have provided flat-rate grants of €200 per kWp — in some cases up to approximately €1,200 per system. Other cities such as Augsburg and Tübingen have run tiered programs based on system size, though these were often exhausted quickly. It is worth searching the national funding database for current programs available at your business location.

Subsidized Loans for Commercial PV Systems

The most significant federal-level support comes in the form of low-interest loans from KfW, the German state development bank. Rather than direct grants, businesses can use these subsidized loans to finance photovoltaic projects on favorable terms. Two KfW programs are currently available specifically for PV:

KfW Program 270 — "Renewable Energies: Standard"

This program offers low-interest loans of up to €150 million per project with terms of up to 20 years, financing up to 100% of investment costs. Eligible applicants include businesses of all sizes (private or public), self-employed individuals, and even private persons. Interest rates start from approximately 3.25% effective per annum depending on creditworthiness (as of July 2025). This loan can be combined with the feed-in tariff — though self-consumption typically delivers the better economic outcome.

KfW Program 293 — "Climate Action Initiative for Businesses"

This subsidized loan is aimed at businesses that self-consume at least 50% of the solar electricity generated. It is also available when the PV system forms part of a mobility concept (e.g. for electric vehicles on the business premises). Financing of up to €25 million per project is available, at particularly attractive rates from approximately 1.97% effective per annum.

Important: Program 293 is not compatible with the EEG feed-in tariff. Businesses using this loan must prioritize self-consumption. In return, the program rewards climate-friendly use with significantly better terms.

Note: KfW subsidized loans are applied for through your own bank, which forwards the application to KfW and disburses the funds. In addition to KfW, some state development banks offer their own loan programs — for example L-Bank (Baden-Württemberg) or IBB (Berlin), where available. The advantage of a subsidized loan is that it offers more favorable interest rates than a standard bank loan and often includes initial interest-only periods. Unlike a grant, however, the full loan amount plus interest must ultimately be repaid.

Tax Benefits and Depreciation of Commercial PV Systems

Tax incentives reduce the financial burden of investing in photovoltaic systems by lowering the tax liability. The key benefits are:

Special Depreciation (Declining-Balance AfA)

Since 1 July 2025, commercially operated PV systems can be depreciated using a declining-balance method of up to 15% per year, in addition to standard straight-line depreciation. This results in significantly higher write-offs in the early years, increasing tax relief and accelerating the payback period. This provision (the Investment Booster within the Growth Opportunities Act) applies on a time-limited basis to acquisitions made through to the end of 2027. Battery storage systems can even be depreciated at up to 30% per year. For businesses, this means a larger portion of investment costs can be immediately deducted from profits leading to substantial tax savings in the early years of operation.

VAT Relief

The purchase and installation of smaller PV systems up to 30 kWp has been subject to a zero VAT rate since 2023, meaning no 19% VAT applies. This noticeably reduces upfront investment costs. (This regulation applies primarily to systems on residential buildings; businesses eligible for input VAT deduction had already benefited previously, so for them the zero rate mainly eliminates administrative complexity.)

Further Tax Considerations

Businesses can depreciate solar systems as business assets (standard useful life of 20 years, unless the declining-balance method is chosen). Under certain conditions, an investment allowance (Investitionsabzugsbetrag / IAB) can also be used to set aside up to 50% of the planned investment amount as a profit-reducing deduction even before the acquisition takes place. In addition, self-consumed solar electricity remains exempt from electricity tax for businesses, provided the system is under 2 MW and the electricity is consumed on-site (pursuant to the Energy Tax Act / EnergieStG).

All of these tax advantages significantly improve the economics of PV projects and apply in addition to any grants or loans received.

Feed-In Tariff and Solar Electricity Marketing (EEG)

Alongside direct funding, the statutory feed-in tariff under the Renewable Energy Sources Act (EEG) represents an important financial incentive. When your business feeds solar electricity into the public grid, you receive a fixed tariff for a period of 20 years from the date of commissioning. The level of compensation depends on when the system is commissioned and its size:

Fixed Feed-In Tariff (up to 25–100 kWp)

For smaller commercial PV systems, the grid operator pays a fixed rate per kWh of electricity fed into the grid. As of late 2025, rates are approximately 7–8 cents per kWh for systems primarily configured for self-consumption (partial feed-in), and up to approximately 12 cents/kWh for full-feed-in systems where all electricity is exported. These rates decrease slightly every six months (degression) to reflect cost developments — but once your system is registered, the rate guaranteed at commissioning remains fixed for the full 20 years.

Direct Marketing and Market Premium (Larger Systems)

For larger PV systems, the fixed feed-in tariff no longer applies. From 2025, operators of systems from 25 kW upwards are required to market their solar electricity directly (previously, this threshold was 100 kW). This means your business sells the generated electricity on the electricity exchange or to energy traders. In return, the government pays a market premium to compensate if the achieved market price falls below the EEG reference rate. The combination of exchange revenue plus market premium ensures you are no worse off overall than under the fixed feed-in tariff.

You also benefit if wholesale electricity prices temporarily exceed the EEG rate, as the upside is yours to keep. Important to note: negative market prices mean no compensation is paid for that period — an incentive to reduce feed-in during such times.

For commercial businesses, self-consumption of solar electricity is generally more economically advantageous than maximizing grid feed-in. Every kilowatt-hour of solar power consumed on-site replaces expensive grid electricity (commercial electricity often costs 20–30 ct/kWh), while feed-in compensation is in the single-digit cent range.

That said, the feed-in tariff and direct marketing ensure that surplus electricity is never wasted. It always generates additional revenue.

Combining Funding Sources — Maximizing Your PV Benefits

With multiple funding options available, the question naturally arises: how can they best be combined? In principle, it is possible to use several funding instruments for the same PV project. For example, a subsidized loan alongside an investment grant alongside tax benefits. However, certain rules apply to prevent double funding:

Loan + Grant

This combination is generally unproblematic, provided the grant program permits it. A KfW loan can, for example, be combined with state-level grants, since the former reduces financing costs while the latter covers a portion of the investment. KfW itself does not exclude parallel grants. However, be aware that many state programs require the total of all public funding not to exceed a certain share of project costs, or may include a specific prohibition on combining sources. Always check the program guidelines to confirm whether a grant is “cumulable” with KfW funding.

Grant + Grant

Two non-repayable grants (e.g. a state grant and a municipal grant) for the same line of expenditure are generally not permitted. You will typically need to choose one source, or the funding will be reduced if both are approved. Exception: sometimes different levels of government fund different components. For example, the state funds the battery storage while the municipality funds the PV system itself. In such cases, separate combination is permissible.

Combining with Tax Benefits

Tax advantages can always be claimed on top of other funding. If you receive a grant, for instance, it reduces the depreciable acquisition cost, but you can still write off the remaining amount using standard or declining-balance depreciation. The zero VAT rate can equally be used regardless of whether you are also applying for subsidized loans or grants, as it operates independently of other programs.

Feed-In Tariff + Other Funding

The EEG feed-in tariff runs automatically alongside other measures and rarely conflicts with them. The only exception is KfW Program 293, which explicitly excludes systems primarily oriented toward grid feed-in. Otherwise, you can absolutely continue receiving your feed-in revenue while servicing a KfW loan or after having claimed a grant. The additional income from electricity sales improves your overall ROI without affecting the funding itself.

In short: combine funding sources wherever possible to maximize your total savings. A lower loan requirement — thanks to a grant — reduces your interest burden, while tax benefits increase the overall profitability of the solar project. Always observe the funding conditions (cumulation rules, minimum self-contribution requirements, etc.), and seek expert advice when in doubt to develop the optimal funding strategy for your PV project.

Funding Advisory and Professional Implementation with LEVONOVA ENERGY

You want to install a commercial photovoltaic system, but you have better things to do than work your way through forms, guidelines, and funding conditions? Then schedule a free analysis session with our experts.

LEVONOVA ENERGY manages the entire process: from initial assessment and grant application through to technical implementation. Our experts review your project, guarantee you the maximum available funding, and take care of every technical, organizational, and administrative task.

While you focus on your core business, we handle everything else. No effort on your part, and more importantly: no headaches.

Simply fill out the form and arrange a no-obligation initial consultation. We’ll show you exactly how much funding you can receive — and then make it happen for you.

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