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Germany plans to reform solar feed-in tariffs
Germany is preparing for significant changes to its renewable energy landscape. The Federal Cabinet intends to abolish the feed-in tariff for new photovoltaic (PV) systems as part of a reform to the Renewable Energy Sources Act (EEG). Under current rules, homeowners who commission systems by the end of this year can secure a guaranteed rate of 7.7 cents per kilowatt-hour for 20 years. However, for systems commissioned after January 1, 2027, a transitional payment of only 5.2 cents per kilowatt-hour is proposed, lasting for only three years.
Market analysts at EWS anticipate a ‘year-end rally’ in PV installations as consumers rush to secure existing subsidies before the reform takes effect, which could lead to material shortages. While PV expansion reached approximately 1.53 gigawatts in July 2026, the shifting regulatory environment is creating investment uncertainty. Additionally, energy analysis shows that while solar production can drive electricity prices to near zero during peak midday hours, the reliance on fossil fuel backups remains high during periods of low wind and solar output.
Entities
Bundestag · EWS · Finanztip · German Federal Cabinet · German Pellet Institute · Main Association of the Construction Industry · Matthias Bauer · Renewable Energy Sources Act · Verbraucherzentrale Baden-Württemberg · Wilma Bourneuf
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Pellet tonnage prices rose by 10% in one month and roughly 40% over the past year.
- [● 3 SOURCES] In July, pellets remained cheaper than heating oil by approximately 40% and cheaper than natural gas by about 31%.
- [● 3 SOURCES] The construction industry saw a real decrease of 0.2 percent in the first five months of 2026.
- [● 3 SOURCES] High pellet prices and reduced supply are driven by decreased sawmill activity caused by a sluggish construction industry.