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[BUSINESS] · Germany · 13 sources

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Germany plans reform of solar energy subsidies

The German government is planning a reform of the Renewable Energy Sources Act (EEG) that will significantly alter the economic landscape for small-scale photovoltaic (PV) systems. Under the proposed changes, the federal government intends to shift its focus toward large-scale ground-mounted solar plants, which are considered more cost-efficient.

For small residential systems with a capacity of less than 25 kilowatt peak (kWp), the current 20-year guaranteed feed-in tariff is set to be phased out. Homeowners who install systems by the end of 2026 can still secure the existing long-term compensation rates, which currently offer up to 7.7 cents per kilowatt-hour for certain systems.

However, for systems commissioned after January 1, 2027, the permanent subsidy will be replaced by a temporary payment lasting only three years. This transitional payment is expected to be approximately 5.2 cents per kilowatt-hour. Following this period, any surplus electricity fed into the grid would be subject to direct marketing at current market prices. Experts suggest that the profitability of residential solar may decrease under these new rules, making self-consumption of produced electricity more critical for homeowners.

Entities

Finanztip · German Federal Government · Renewable Energy Sources Act

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