“It is a good day for the energy transition, to push back on fossil fuels and to take economic development into account in difficult times,” said Chancellor Karl Nehammer (ÖVP) to journalists. Vice Chancellor Werner Kogler (Greens) added: “We want to solve two problems with a package of measures: push ahead with the ecologically necessary energy transition even more quickly and effectively combat the dip in the construction industry.”
The sales tax suspension for photovoltaic systems is planned for 2024 and 2025. Complicated and often urgent requests via the Internet should now be a thing of the past. According to the government, the suspension of sales tax on photovoltaic systems will cost 650 million euros.
Contrary to what was originally planned in the Renewable Heat Act (EWG), there will be no obligation to replace heating systems in existing buildings. However, incentives should be provided by increasing subsidies for phasing out gas heating systems. One billion euros will be made available for boiler replacement and thermal renovations. “Anyone who replaces their old heating system will have an average of three quarters replaced,” explained Climate Minister Leonore Gewessler (Greens). When asked, she was convinced that the climate goals could be achieved even more quickly with the new approach than with the original plan. This applies not least because subsidies for low-income households as well as funds for the climate and energy fund are also being increased. The subsidies are also certainly tempting for owners of multi-storey residential buildings to invest.
The original plan was shelved due to new developments in the meantime. A two-thirds majority is necessary: ”We hope to be able to quickly pass a resolution in the National Council with this proposal,” said Gewessler, referring to the SPÖ, which had already informed her about the new plan.
All government members and ÖVP Economics Minister Martin Kocher emphasized in unison that the approach is intended to strengthen construction and the related construction industry. This means that federal public investments are brought forward and construction projects are prioritized. According to Gewessler, this will involve a total of additional investments of 640 million euros in 2024 – ÖBB, Asfinag and Bundesimmobiliengesellschaft should also bring forward corresponding measures. The current ÖBB framework plan will be increased by 2 billion euros.
The day before the Finance Minister’s budget speech, the government leadership announced an agreement on the implementation of the energy cost subsidy for companies. The energy cost subsidy II, which was approved at the end of last year, is intended to help companies cushion high energy costs. So far, however, the implementation of the funding worth up to 150 million euros has been stalled. The Greens recently spoke out against it. They fear that companies will be over-funded, which could further fuel inflation.
There is no need to fear over-funding, emphasized Kocher. Applications will start on November 9th. Since pre-registration started yesterday, a good 7,000 companies have already pre-registered. “Against the background of ongoing inflation and the German gas and electricity price brake, it was and is essential to secure the competitiveness of Austrian companies through further measures and to strengthen the location,” said the politician. “The Energy Cost Subsidy II will also provide companies with relief from high energy costs in 2023.”
In contrast to the energy cost subsidy I, the funding intensity in the lowest level will be increased to 50 percent. “In addition, the entry criterion of energy intensity is no longer applicable in the first two stages,” says Kocher. What remains unchanged is that only additional costs caused by increased energy costs are partially subsidized. In general, funding for cost shares that have already been passed on in prices is excluded. According to Kocher, this ensures that the support provided as part of the energy cost subsidy is accurate and not excessive.
