ᐅ Waiving Feed-in Tariffs: Is It Always Feasible? Storage System Prices?
Created on: 18 Jul 2022 12:52
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NBN2022Hello everyone,
we are planning a small 5.7 kW peak system. We are still undecided about whether to include a battery storage or not. Through our installer, we have been offered a battery with 5.12 kW capacity for just under €10,000. That seems very expensive to me. Is it usually possible to get it cheaper if added later? Including installation?
My main question is this: assuming an annual electricity generation of 5,000 kWh, minus self-consumption (depending on whether there is a battery or not), there is not much left to sell back to the grid operator. Plus, the “effort” with the tax office... Despite simplifications for smaller systems, as far as I know you still have to handle the VAT return... We would gladly do without those few euros entirely if it means we are completely “off the hook” regarding the tax office. Is that possible?
Thank you very much for your help!
we are planning a small 5.7 kW peak system. We are still undecided about whether to include a battery storage or not. Through our installer, we have been offered a battery with 5.12 kW capacity for just under €10,000. That seems very expensive to me. Is it usually possible to get it cheaper if added later? Including installation?
My main question is this: assuming an annual electricity generation of 5,000 kWh, minus self-consumption (depending on whether there is a battery or not), there is not much left to sell back to the grid operator. Plus, the “effort” with the tax office... Despite simplifications for smaller systems, as far as I know you still have to handle the VAT return... We would gladly do without those few euros entirely if it means we are completely “off the hook” regarding the tax office. Is that possible?
Thank you very much for your help!
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Axolotl-neu18 Jul 2022 13:10Preliminary: So, you want to set up an off-grid system for your own electricity use. This only makes sense if the system is small enough (a balcony solar system) or has a properly sized battery storage. Otherwise, it is impractical because without storage you will likely "lose" 60-70% of your generated electricity.
A photovoltaic system does not require much effort. That is a myth and it can be managed without a tax advisor.
By the way, with an off-grid system you pay the gross price because you avoid all the hassle with the tax office. So for your €10,000 (ten thousand euro) system, you already pay around €2,000 (two thousand euro) as "entry cost." Add a similar amount again for the battery storage.
NBN2022 schrieb:€200 annual income – with an effort of about 60 seconds per quarter in the first year (and possibly the second year), and then only once a year afterward?
Regarding the "effort" with the tax authorities...
A photovoltaic system does not require much effort. That is a myth and it can be managed without a tax advisor.
By the way, with an off-grid system you pay the gross price because you avoid all the hassle with the tax office. So for your €10,000 (ten thousand euro) system, you already pay around €2,000 (two thousand euro) as "entry cost." Add a similar amount again for the battery storage.
Thank you, but my question about whether I can do without it was not answered. And no... I don’t want to fill out anything for the tax office for a gift of 200€ (about $220) per year. However, I think we should buy a system with storage so that the scope of my gift remains limited. The only question left is: Am I allowed to give away my electricity so that I am legally NOT involved with the tax office at all?
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Deliverer18 Jul 2022 14:04“Island system” has nothing to do with everything written here. Please forget about it immediately.
Regarding the original question: If you want to avoid dealing with the tax office (after initially applying for non-commercial status), build a system with a maximum of 10 kWp (possibly soon 30 kWp, but you have to wait a little to see if that will be approved) and give up reclaiming the VAT.
You can still feed your electricity into the grid and get paid for it. I would definitely recommend doing this – even small systems often generate more than you might expect.
The battery storage is about seven times too expensive to be economically viable. I would therefore leave it out.
In general: The planned 5.7 kWp system is quite small. The larger the systems become, the more economical they are and the more benefits you can gain in the future. For e-mobility and heat pumps, almost any system is too small.
It would therefore be advisable to first check whether additional roofs are available. This can include the north-facing roof, if it is not steeper than 25° (degrees).
Regarding the original question: If you want to avoid dealing with the tax office (after initially applying for non-commercial status), build a system with a maximum of 10 kWp (possibly soon 30 kWp, but you have to wait a little to see if that will be approved) and give up reclaiming the VAT.
You can still feed your electricity into the grid and get paid for it. I would definitely recommend doing this – even small systems often generate more than you might expect.
The battery storage is about seven times too expensive to be economically viable. I would therefore leave it out.
In general: The planned 5.7 kWp system is quite small. The larger the systems become, the more economical they are and the more benefits you can gain in the future. For e-mobility and heat pumps, almost any system is too small.
It would therefore be advisable to first check whether additional roofs are available. This can include the north-facing roof, if it is not steeper than 25° (degrees).
D
Deliverer18 Jul 2022 14:05NBN2022 schrieb:
And no... for 200€ (about 220 USD) per year, I don’t want to fill out anything for the tax office.How long do you usually have to work to earn 4000 tax-free euros?D
DaGoodness18 Jul 2022 14:08What should the 5.7 kWp system on the roof cost when the battery storage alone is already €10,000?
The battery storage at that price doesn’t make any sense and is just wasted money. It will never pay off.
If you give up the feed-in tariff, you should consider whether the entire system is worth it at all.
Depending on the cost of the 5.7 kWp system, you will never recover the costs through self-consumption alone.
Your main energy consumption is in winter, and you will never fully charge the battery to cover the night-time usage.
I also don’t understand what the problem is here? You can export electricity without having to pay value-added tax (VAT). This is called the small business regulation. However, in that case, you won’t get the VAT back on the purchase of the system either.
What’s your issue with the 2 minutes of work per year for VAT (you only have to enter exactly 2 numbers)?
In the end, you are essentially giving away several thousand euros by avoiding this.
The battery storage at that price doesn’t make any sense and is just wasted money. It will never pay off.
If you give up the feed-in tariff, you should consider whether the entire system is worth it at all.
Depending on the cost of the 5.7 kWp system, you will never recover the costs through self-consumption alone.
Your main energy consumption is in winter, and you will never fully charge the battery to cover the night-time usage.
I also don’t understand what the problem is here? You can export electricity without having to pay value-added tax (VAT). This is called the small business regulation. However, in that case, you won’t get the VAT back on the purchase of the system either.
What’s your issue with the 2 minutes of work per year for VAT (you only have to enter exactly 2 numbers)?
In the end, you are essentially giving away several thousand euros by avoiding this.
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