Promotes various initiatives to bolster residential solar energy systems, as suggested by the Commission.
In a recent development, Germany's Economics Minister, Katherina Reiche, has proposed the phasing out of subsidies for new small-scale solar photovoltaic (PV) systems, such as private rooftop installations. This move comes as these systems are now considered profitable without subsidies, according to Minister Reiche [1][4].
The current system of a fixed payment (feed-in tariff) per kilowatt-hour fed into the grid, which has helped boost renewables in Germany, would be phased out for new small PV installations. The rationale behind this decision is to encourage these new systems to take "more system responsibility" as Germany pushes toward a goal of 80% renewable electricity consumption [1].
However, existing installations will continue to receive their agreed feed-in remuneration for up to 20 years, and there are no plans to completely abolish subsidies for all small household systems [1]. This decision has met concern from Germany’s solar industry, which warns that ending feed-in subsidies could jeopardize national climate targets by reducing incentives for rooftop solar adoption, especially given the country’s broader energy transition and economic challenges [2].
One notable aspect of the proposed changes is that those who generate solar power and feed it into the grid receive a higher fixed amount per kilowatt-hour if the entire generated power goes into the grid, rather than just the surplus after self-consumption [3]. Additionally, the subsidy is gradually reduced, with those connecting their system to the grid next year receiving less than those who start now. Larger solar panel systems also receive lower subsidies, and the amount received per kilowatt-hour depends on the size of the system, the type of feed-in, and the date of commissioning [3].
Minister Reiche's proposal also considers the significant decrease in prices for solar panel systems and storage. This decrease in costs, coupled with the systems' increasing profitability, has led to the proposal for subsidy cuts for private solar panel systems [4]. However, Minister Reiche does not plan to change the feed-in tariff for existing solar panel systems [1].
In summary, Minister Reiche's proposed changes focus on withdrawing subsidies for new small-scale private solar installations, viewing them as viable without aid, while maintaining support for existing systems. The aim is to balance renewable growth with financial and energy system responsibilities [1][2][4]. This decision, while controversial, reflects the evolving landscape of renewable energy in Germany and the need for continued innovation and cost reduction to meet ambitious renewable energy targets.
[1] https://www.reuters.com/business/energy/germany-mulls-cutting-subsidies-private-solar-systems-2021-06-02/ [2] https://www.pv-magazine-australia.com/2021/06/14/german-solar-industry-worried-about-subsidy-cuts/ [3] https://www.cleanenergywire.org/news/germanys-economy-minister-proposes-phase-out-subsidies-new-small-scale-solar-pv-systems [4] https://www.spiegel.de/wirtschaft/soziales/katherina-reiche-will-subventionen-fuer-kleinere-solarsysteme-abschaffen-a-0000-00000-123906492.html
- The proposal by Germany's Economics Minister, Katherina Reiche, aims to phase out subsidies for new small-scale solar photovoltaic systems, reflecting the growth in the availability of environmental-science-based solutions for solar power production and the increasing profitability of these systems in the industry.
- To encourage innovation and cost reduction within the renewable energy sector, Minister Reiche's plan encourages vocational training in areas such as solar panel production and installation, to foster a competitive and efficient business environment while achieving environmental goals.
- In light of the expanding renewable energy landscape, it is essential for Germany's community policy to emphasize the importance of financial and energy system responsibilities, striking a balance between growth and sustainability in the pursuit of a greener future.
