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ENERGY

EXPLAINED: Is it worth switching to solar power in Austria?

Thinking about installing solar panels on your home in Austria? Interested in the benefits of solar energy? Here’s what you need to know.

Published: 7 October 2021 15:40 CEST
A cottage in the middle of a field with solar panels on the roof. How do you convert to solar in Austria? Photo by Alex Bierwagen on Unsplash
A cottage in the middle of a field with solar panels on the roof. How do you convert to solar in Austria? Photo by Alex Bierwagen on Unsplash

As countries around the world turn to renewable energy sources to protect the climate, the Austrian Federal Government has set its sights on solar energy.

Not only is the use of solar panels environmentally friendly, but it could also save households money on rising energy bills, which makes the switch to renewable energy an attractive option for many people.

But what exactly is solar energy? And what incentives are available from the Austrian Federal Government for installing photovoltaic panels on your home? 

Here’s what you need to know.

What is solar energy?

Solar energy is the conversion of sunlight into energy, primarily through the use of a photovoltaic (PV) system, which is then used to power thermal electricity, heating and cooling systems.

Globally, solar PV generation increased by 22 percent in 2019. This represented the second largest growth of an energy source behind wind power and ahead of hydropower.

The International Energy Agency (IEA) predicts that the United States, China and the European Union will add an extra capacity of 125 GW of solar energy per year between 2021 and 2025.

What is the attitude towards solar energy in Austria?

In July, the Austrian parliament voted in favour of the Renewable Expansion Law, which set a goal of switching to 100 percent renewable electricity production by 2030.

But for this to happen Austria has to invest in capacity expansion to create an additional 27 TWh of electricity generation.

According to Austria Solar, fossil fuels will be replaced by solar energy for heat production in the near future in Austria, with the potential for every second building in the country to be supplied with solar heat.

Currently, domestic solar heat production is around 100 GWh per year, but an IEA study says Austria could produce more than three times as much with investment into facilities.

FOR MEMBERS: Rising energy prices: How to save money on bills in Austria

To boost the number of solar panels, the City of Vienna last year introduced an amendment to planning laws that states all new residential buildings in the capital have to be built with photovoltaic panels. Previously, the rule only applied to industrial buildings.

In cases where it would be impractical to install solar panels on a building, contractors have to provide an alternative option for generating renewable energy instead.

In 2020, the Austrian Federal Government also announced it will equip one million homes with solar panels by 2030. 

How to switch to solar power in Austria

There are a few different ways to switch to solar energy in Austria, depending on where you live.

For example, Wien Energie in Vienna runs a citizen solar power project which involves people investing in a solar power plant in return for carbon-free energy.

Investors then receive interest every year which can be used towards the electricity bill or paid out as supermarket vouchers. 

The Wien Energie system is especially popular with residents that live in rented apartments in the city and don’t have the option to buy a PV system for their own home.

On a national level, a combination of state and municipal funding is available for people to install PV systems through the Climate and Energy Fund.

The fund provides one-off subsidies of between €150 and €250 per kWp for the installation of PV systems of up to 50 kW.

READ ALSO: Austria’s nationwide public transport ‘climate ticket’ now available

The investment aims to help more small and medium sized businesses, as well as individuals, switch to renewable energy.

There is also a one-time investment grant of €700 towards the installation of thermal solar systems for heating and hot water.

The application process for the subsidy starts by registering at the website and installing a PV system.

Approval of the grant will depend on the availability of the budget, which currently runs until 31 December 2022.

The Austrian Federal Government recently pledged to provide a further €20 million to the Climate and Energy Fund. 

The argument for solar power generation in Austria

While recent announcements and financial incentives by the government to encourage the installation of PV systems have been widely welcomed by environmental campaigners, there are concerns it doesn’t go far enough.

Vera Immitzer, CEO for Photovoltaic Austria, told Power Technology that photovoltaic power will have to be increased by tenfold to provide the levels of electricity generation cited by the government.

READ MORE: How will climate change impact Austria?

Immitzer said larger systems could also be installed in parking lots and open spaces, as well as on residential roofs to increase overall power generation.

The concern is that renewable energy systems currently provide 1.4 terrawatt-hours (TWh) of power, which covers just 2.5 percent of the country’s energy demand.

The government plans to generate 11 TWh of electricity via solar energy by 2030.

How much energy do Austrian households use?

According to the latest figures from Statistik Austria, the most commonly used energy source in Austria is electricity at 24.3 per cent.

This is followed by fuel wood (19.3 percent), natural gas (18.6 percent) and district heating (13.5 percent). 

Natural gas is also the second most popular energy source nationwide for heating after fuel wood. This means a significant rise in gas prices will have an impact on household budgets this winter.

However, switching to solar panels to generate electricity could help consumers save some money on energy bills.

READ MORE: Austrian government unveils ‘eco’ tax reform

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LIVING IN AUSTRIA

‘Haushaltsversicherung’: How does Austria’s home insurance work?

'Haushaltsversicherung' is one of Austria's most popular types of insurance. It is not mandatory, but it is certainly worth evaluating, especially as it comes with many possible add-ons.

Published: 2 May 2024 15:22 CEST
'Haushaltsversicherung': How does Austria's home insurance work?

Austrians are certainly obsessed with insurance coverage, and one of the most popular and common ones is known as the “Haushaltsversicherung”—if you don’t have it already, you have certainly heard of it. Here’s what you need to know about household insurance.

Firstly, this insurance covers damages to “all movable objects within your own four walls,” as Austria’s Chamber of Labour (AK) explains. This includes furniture, carpets, and electrical appliances. It would also cover damages caused by fire, storms, water, burglary, and glass breakage. 

Certain types of insurance, such as private liability insurance or mandatory dog liability insurance, are almost always combined with household insurance—another reason why the Haushaltsversicherung is so popular in Austria.

READ ALSO: What kind of insurance do I need to have in Austria?

However, there are enormous differences in premiums and benefits, so experts suggest you check precisely what you need before taking out insurance. The AK also says you should talk to an insurance advisor to learn more about your specific case and needs, particularly if you have any valuables in your home. 

Additionally, they said: “It makes sense to check your policy every few years to ensure that you are properly insured. This guarantees that the sums insured and the risks included are up-to-date and sufficient”.

What should I keep an eye on when reviewing policies?

Of course, different companies have their own offers, and they are often highly customisable to fit your apartment and lifestyle—some things you need to be aware of, though.

Certain policies are tied to the size of your apartment, while others will have a lump sum regardless of the size of your place. Policies also usually differ depending on whether you live in an apartment or a house. 

While most insurance will cover glass breakage (such as when a hail storm breaks your window, for example), some might have it as an add-on (wahlweise mit Glasbruch). 

You may also add other types of insurance to your household insurance, the most common being mandatory dog liability insurance (Hunde-Haftpflicht), legal insurance (Straf-Rechtsschutz), and sports insurance.

READ ALSO: Should I take out insurance before skiing in Austria?

It’s worth it to read each policy, but you should know some common clauses beforehand. For example, insurance often won’t cover burglary costs if your house has not been properly secured and locked. This might seem obvious, but since door knobs don’t open from the outside without the key, people often leave their homes, especially for short errands, and don’t lock the doors all the way. Insurance and safety experts recommend you get in the habit of locking your home doors.

It’s also important to check if your insurance will pay you “Neuwert” or “Zeitwert” in case of damage. 

A Neuwert means the insurance will pay for a replacement object, regardless of how old the stolen or broken one was. However, many insurance policies still contain the so-called “Zeitwert”, something like “current value”, so you wouldn’t receive an amount that could pay for a new product. Instead, a loss of value of around 10 percent per year could be expected for most objects.

What should I do if there is damage to my home?

If you see any damage to your home from burglary, accident or other types, you need to notify your insurer immediately and report the damage you have suffered. 

The insurance conditions usually stipulate a maximum period of three days for reporting a claim in property insurance. The Chamber of Labour also recommends that you send a written notification of the claim (preferably by registered mail, they add).

“Make a list of all items that have been destroyed or lost and enclose it with your report to both the insurer and the security authorities”, they said. And, of course, in the event of fire burglary or robbery, always inform the fire department or police authorities.

READ ALSO: EXPLAINED: The Austrian insurance for if you get sued – or want to sue someone

How long does the insurance last, and how much does it cost?

The insurance term is usually specified in the counteract. In general, though, you can terminate it after the third year with one month’s notice if the contract has not already expired.

If you move house or move abroad, you can terminate your household insurance contract. You can cancel the insurance the day before the move begins (preferably by registered letter).

If you do not exercise your right of termination, the insurance will remain valid during the move and in the new home.

Regarding prices, they can be as low as a few euros a month (such as insurance specifically tailored to students living in shared flats) to several hundred a month if you have a large place with plenty of valuables or include several add-ons. 

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