The German Federal Ministry of Economics has unveiled a draft amendment to the Renewable Energy Act that introduces tougher rules for expanding solar power, according to a report by “Der Spiegel”.
First, solar installations on private houses with a capacity under 25 kW would no longer qualify for subsidies. At present, they receive a feed‑in tariff ranging from €0.0673 to €0.1234 per kWh, depending on the size of the system and whether all or only part of its electricity is fed back to the grid. The draft also requires operators of such small systems to secure a buyer for their power before they may feed it into the network, whereas grid operators have previously taken the electricity unconditionally.
Another change is a new requirement for the very smallest systems below 7 kW: they will need smart meters installed, a measure that will raise upfront investment costs. Operators must apply for early installation by the end of 2028, and balcony‑mounted panels (Balkonkraftwerke) are exempt.
Regarding rooftop solar arrays, Minister Katherina Reiche’s proposals suggest that feed‑in will be limited to only 50 % of an installation’s rated capacity. Power produced beyond that can only be consumed on‑site or stored in a private battery. Whether this restriction will apply only to units below 25 kW or also to those up to 100 kW remains undecided. Previously, the injected power was capped at 60 % but was lifted once a smart meter was installed. Balcony systems remain exempt.
A broader amendment would overhaul the market for larger plants. Currently, facilities above 25 kW receive tiered subsidy rates that vary with size. Reiche intends to harmonise the rate, which would benefit huge corporate‑run parks owned by companies such as E.ON and RWE, while giving smaller commercial projects a relative disadvantage. The rationale cited is the enormous scale economies in plant construction.
When asked for comment, the ministry declined to elaborate, saying it would wait for the public consultation that will open once the EEG revision work is complete. It stressed that the EEG still requires action because cost‑efficiency and supply security have been “insufficiently considered in recent years” and that the public should no longer be using tax revenue to support grid injection from small rooftop installations that can already sustain themselves without subsidies.
Last year, the growth of photovoltaic and wind capacity fell short of the targets set in the Renewable Energy Act. From 2025 on, the plan calls for an additional 7.8 GW of wind capacity each year, rising to 22 GW of solar per year from 2026. The reduction of feed‑in tariffs after 2012 had been blamed for the slowdown in expansion.