Germany moves to end feed‑in tariffs for private solar under new Renewable Energy Act

The federal government is close to finalising an amendment to the Renewable Energy Act (EEG) that would end the fixed feed‑in tariff for private solar installations after 2027. SPD parliamentary leader Matthias Miersch said a cabinet decision could be reached by summer, with parliamentary debate in the autumn and subsequent EU approval. Economy Minister Katherina Reiche, who first proposed the tariff removal, has been forced to seek a compromise after criticism from coalition partners.

A new “Solarspitzengesetz” passed in February further limits the economics of new solar projects: without a smart meter, output is capped at 60 % of a plant’s capacity and feed‑in payments disappear during negative‑price periods. This has led to a more than 50 % drop in registrations of large‑scale installations and a shift toward self‑consumption and battery storage. Industry experts note that households with electric vehicles or heat pumps can now achieve 70‑80 % self‑consumption, making on‑site storage increasingly important.

The current 0 % VAT rate on photovoltaic systems and storage units continues to boost private adoption, though analysts warn the tax break may not be permanent and urge immediate investment. Meanwhile, renewable sources generated 61.8 % of Germany’s electricity in the first half of 2026, a record reported by the Fraunhofer Institute for Solar Energy Systems.