ᐅ Is installing solar panels on the roof worthwhile?

raffa schrieb:
This is more about being forced to do something. And showing me a VAT return done in 5 minutes, please go ahead

Sorry, I was exaggerating—it’s actually just one click in the accounting software. VAT returns are very straightforward (basically input VAT versus output VAT), no one prepares them manually anymore; they are generated and submitted based on the monthly transactions.

Here’s an example: According to the fee schedule, a tax advisor can charge a minimum fee of €6.80 net for a VAT advance return with the lowest subject value (650€ – which you would never reach with photovoltaics). An equivalent annual VAT return with minimum fee and subject value (8000€ – also much too high for photovoltaics) costs €86.

Furthermore, with such low turnover, a monthly advance return is usually not required after the first year; only an annual one is needed. I don’t remember the exact thresholds right now.

Bieber0815 schrieb:
Heating system maintenance can indeed be claimed for tax purposes (under certain conditions and not unlimited, of course).

Yes, that’s correct. But to a much lesser extent. Maintenance for photovoltaic systems is completely net, unless you want (and are able) to opt for the small business scheme, and it also reduces the profit and therefore income tax, solidarity surcharge, and, if applicable, church tax.

raffa schrieb:
This is more about being forced to do something. And a VAT return in 5 minutes, please show me that

@raffa

I can confirm that the monthly VAT advance return (calling it a monthly VAT return is nonsense) does not take 5 minutes. I have been doing it for about 15 months now and would even say that 5 minutes is a pessimistic estimate—more like 3 minutes.

Usually, the tax office will allow you, after about a year, to submit the return quarterly at most, or often not at all anymore.

Then there is only the annual VAT return and income tax return (which everyone should do anyway, for other reasons).

I didn’t want to start a tax discussion here [emoji85]

The threshold for small businesses is 17,500€ revenue (not profit) per year.
$19 VAT law

The effort is actually not high. You calculate the depreciation once at the beginning using Excel. It’s worth doing this once because it makes sense to start with declining balance depreciation and only later switch to straight-line depreciation.

Otherwise, there really isn’t much paperwork. Expenses are rare—maybe occasionally maintenance, or if cleaning is needed, or something similar. This does not happen every month, nor in large amounts.
Regarding income, I believe energy providers usually settle once a month. So again, just one sheet.

The likelihood of revenue exceeding 17,500€ with a photovoltaic system for “own use” is rather low. Therefore, people usually register immediately as a small business, meaning the filing obligation is automatically annual, and the VAT advance returns and VAT declaration are unnecessary. Prepayments are not an issue either.

Under these conditions, the effort is indeed low. You don’t even need to take it to an accountant; anyone can handle it at home.

You just need to remember how to handle this properly, as many are not aware.

Five years ago, I discussed this topic with a colleague who wanted to install a photovoltaic system on his house. He calculated that it would practically pay for itself just about at the same time it needs to be replaced. The financial benefit is minimal or none at all, especially if you factor in the additional effort at an hourly wage.

Ten years ago, I ran the numbers with my boss out of interest. We came to the same conclusion back then. I believe it was quite well subsidized at the time, but I don’t know how much it is subsidized today...

Experiences from several years ago are not very useful because the market is changing rapidly. Just last year, prices for photovoltaics dropped by 10%, and previous years showed similar trends. On the other hand, feed-in tariffs are also changing. Yield forecasts are individual and, of course, important in order to calculate the ROI.

CiJay schrieb:
It is therefore usually registered immediately as a small business, so the tax obligation automatically becomes annual, and the advance VAT return and declaration are no longer necessary. Prepayments are also not an issue.

You definitely should not register for the small business scheme immediately because you want to reclaim VAT on the investment. However, for that, you have to pay VAT on your own consumption. After 5 years, provided you stay below the turnover thresholds, you can switch to the small business scheme if you consider it beneficial. You need to calculate that.

Alex85 schrieb:
Experience from several years ago is not very relevant anymore because the market is changing rapidly. Just last year, prices for photovoltaic systems dropped by 10%, and previous years were not much different. On the other hand, feed-in tariffs are also changing. Yield forecasts are individual and, of course, important for estimating the return on investment.

The comparison can actually be quite interesting. My father-in-law invested about €12,000 in a photovoltaic system nearly 10 years ago. With the feed-in tariff and compensation for self-consumption at that time, he earned around €1,200 per year.
We are now paying roughly the same amount, about €12,000, for our system and expect to earn approximately €1,200 with today’s feed-in tariff.
The systems differ significantly. His system had 3–4 kWp, ours has 9.9 kWp. Despite this, the return has changed very little.

I will write separately about the general aspects.