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[POLITICS] · Germany · 27 sources

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German Cabinet approves EEG reform ending fixed solar feed‑in tariffs

The German federal cabinet has approved a revision of the Renewable Energy Act (EEG) together with a grid‑connection package. The legislation will end the fixed feed‑in tariff for new residential photovoltaic (PV) installations on 1 January 2027, requiring owners to sell electricity on the market. A 36‑month transition period will provide a reduced tariff that is lowered by approximately one cent per six‑month interval beginning 1 August 2026 (from 7.78 ct/kWh to 7.70 ct/kWh). The reforms are intended to cut federal subsidy spending on renewables by about €15‑17 billion annually and to ease the fiscal burden of the guaranteed 20‑year feed‑in scheme.

The package also aims to accelerate grid expansion, improve system efficiency and keep Germany’s target of 80 % of electricity from renewable sources by 2030. The changes require approval by the European Commission before they can take effect. The reforms have drawn criticism from solar industry groups, citizen‑energy organisations and climate scientists, who warn that the reduction of subsidies could slow the expansion of solar power and harm community energy projects.

Entities

Bundestag · CDU/CSU coalition · European Commission · German Cabinet · German Federal Government · Katherina Reiche · Lars Klingbeil · Net‑package (NAP) · Renewable Energy Act (EEG)

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