Austria’s Ministry of Economic Affairs and Energy has introduced a 20% “Made in Europe” bonus for government-funded PV and energy storage projects using European-made components.

The incentive will apply to projects funded in the second fundraising round of 2025, scheduled for 23 June. It is intended to address the prevalence of cheaper Chinese solar products.

This announcement follows a similar bonus introduced last year for European solar manufacturers. Together, the two initiatives offer support for both the production and deployment of locally made components.

“A central element of this is the ‘Made in Europe’ bonus,” said economic affairs and energy minister Wolfgang Hattmannsdorfer.

“It represents regional added value and a clear commitment to Europe as an industrial location. This course is complemented by the strengthening of hydropower, the targeted expansion of electricity storage and photovoltaics.”

Austria’s 2025 funding priorities will allocate €60m for PV and storage, out of a total €70m for renewables. The remainder will go to hydropower up to €5m, biomass up to €4m, and wind up to €1m.

This represents a significant drop from the €150m distributed last year, including €135m for solar.

“We must use public funds more specifically and effectively,” said state secretary for energy Elisabeth Zehetner. “That is why we are gradually aligning our funding policy more strongly with system service and efficiency.”

From Q4 2025, only PV systems with co-located storage will be eligible for subsidies. No funding will be available during negative pricing periods, and hybrid plants will be prioritised.

These changes align with efforts to enhance system reliability, as Austria continues to experience high levels of energy curtailment.