Germany and France introduce new solar energy grid restrictions

Germany and France are implementing new policies that impact the profitability of residential solar energy. In Germany, a proposed law slated for January 1, 2027, would limit new household solar installations to feeding a maximum of 50 percent of their installed capacity into the power grid. This restriction is permanent and cannot be bypassed via smart meters. The German government states this measure aims to smooth midday production peaks when wholesale prices can drop to zero or negative.

In France, while there is no capacity ceiling, the government has significantly reduced the economic incentive for small-scale producers. As of June 2026, the purchase price for surplus electricity for installations up to 100 kilowatts will drop to 1.1 cents per kilowatt-hour, a sharp decline from previous rates.

Despite these regulatory hurdles, Germany's solar industry has reached a significant milestone. The German Solar Industry Association (BSW) reported that solar installations produced 90.2 terawatt-hours of electricity by late September, surpassing the total production for the entire previous year. This record was driven by high solar capacity and unusually sunny weather. However, industry leaders warn that upcoming changes to the Renewable Energy Sources Act (EEG) and new grid regulations could discourage future private and corporate investments in solar technology.