Hobbyism regulation for photovoltaic systems and the EPP

Those using the new hobbyist rule for small photovoltaic arrays may lose eligibility for the flat-rate energy tax if there is no other income that would make them eligible.

Commercial income also includes income from the feed-in tariff of a photovoltaic system. Anyone who does not otherwise meet the eligibility requirements for the EPP may therefore qualify by operating the photovoltaic system on their own roof. However, this only works if the photovoltaic system is not a hobby business, as there is no taxable income from a hobby business.

The tax authorities' hobby rule for small photovoltaic systems can therefore cost pensioners or retirees with a photovoltaic system on their own roof their entitlement to the EPP. This applies at least to systems that were put into operation before 2022, as the application deadline for the hobby scheme expires at the end of the year for these, meaning that there is no option to apply for the hobby scheme after the tax assessment for 2022 has become final. For newer investments, however, a corresponding arrangement is possible.