Germany Overhauls Renewable Energy Law: Small Solar Owners Face Market Shock
Published on 07/30/2026 at 22:21 | Redaktion boerse-global.de
Germany’s federal cabinet has approved a draft of the Renewable Energy Sources Act (EEG) for 2027, triggering what officials call a fundamental shift in how green power is sold. Instead of guaranteed state-set prices, the government is pushing generators toward direct market sales—a change with deep consequences for small-scale photovoltaic system owners.
Fixed Feed-In Tariffs Scrapped for Rooftop Solar
Starting in 2027, new rooftop solar installations will no longer receive fixed feed-in tariffs. Operators must sell their electricity directly on the market. Economy Minister Katherina Reiche described the move as essential for making renewables more competitive.
A transition period of up to 36 months is designed to ease the shift. The phase-out follows a size-based schedule: in 2027, the old tariff still applies to systems up to 50 kilowatts; in 2028, the threshold drops to 25 kilowatts; and in 2029, it falls to 7 kilowatts. After that, a bonus of 1.5 euro cents per kilowatt-hour is available for 48 months. Feed-in at the grid connection point is capped at 50 percent of installed capacity.
Grid Package Brings Tough Conditions
Alongside the EEG, the cabinet advanced a grid package featuring a “first ready, first serve” principle, giving priority grid access to projects with advanced planning.
A contentious element is the redispatch reservation: in congestion zones, operators must accept curtailment without compensation, capped at 20 percent of annual yield—or 18 percent in wind priority areas. This rule applies for six years, with a possible extension of up to 18 months. It only takes effect in areas where curtailment reached at least 5 percent in the prior year.
Wind and Bioenergy Targets Rise—But Bioenergy Sector Unhappy
To hit the 80-percent renewable electricity target by 2030, the draft significantly raises auction volumes. Onshore wind auctions will aim for 15 gigawatts annually, plus an additional 12 gigawatts. For ground-mounted solar, the target is 14 gigawatts, while rooftop solar is set at 1.5 gigawatts.
The bioenergy industry is less pleased. Auction volumes for 2027 to 2030 were raised to 4,500 megawatts, but the elimination of auctions for highly flexible biomethane combined heat and power plants has sparked anger. Industry representatives warn of risks to existing biogas facilities.
Pushback from Industry and Politicians
The plans face sharp criticism. The German Renewable Energy Federation (BEE) warns that the grid package places a one-sided burden on generators rather than holding grid operators more accountable. Solar industry representatives call the signals to private investors disastrous.
Politically, the final shape remains uncertain. The SPD parliamentary group has already announced significant changes will be needed during Bundestag deliberations. The law’s entry into force on January 1, 2027, is also contingent on state-aid approval from the European Commission. A first evaluation is scheduled for 2029.
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