en.Wedoany.com Reported - The German Association of Energy and Water Industries (BDEW) is calling for a reform of the current inheritance tax treatment of agricultural land leased to ground-mounted photovoltaic power plants, demanding legal clarity that such land should still be classified as agricultural land after being leased to solar arrays.

Kerstin Andreae, Chair of the BDEW Executive Board, pointed out that if agricultural land is leased to a photovoltaic system, it is no longer considered an agricultural or forestry asset for tax purposes. This uncertainty complicates lease agreements, thereby slowing the expansion of ground-mounted photovoltaic systems in Germany. Andreae stated that current inheritance law provisions mean that if agricultural land is leased to a photovoltaic system, it is no longer regarded as an agricultural or forestry asset for tax purposes, threatening the loss of inheritance and gift tax benefits.

Andreae emphasized that the loss of inheritance and gift tax benefits could lead to "significant tax burdens" in cases of inheritance or gifts. According to BDEW's analysis, these tax burdens could, in some cases, exceed the lease income over the entire lifespan of a solar photovoltaic plant. The industry association is calling for legal clarification and has published a proposal document in German to reform the inheritance and gift tax treatment of ground-mounted photovoltaic systems.

BDEW proposes that the relevant areas should be retained as agricultural and forestry assets during the operation of the photovoltaic system. Additionally, the association recommends introducing separate incentive provisions for ground-mounted photovoltaic installations, such as through uniform valuation discounts or tax exemptions. Germany remains one of the main markets for new solar photovoltaic installations in Europe, adding 16.2 GW of new capacity last year. In the first three months of 2026, ground-mounted photovoltaics were the only segment in Germany to achieve year-on-year growth, accounting for nearly half of the 3.51 GW of new installations in the first quarter.

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