The Renewable Energy Law

The Renewable Energy Sources Act

Tariff payments for solar power

The EEG regulates the generation and feed-in of electricity from renewable energy sources in Germany. Everyone who operates a system for generating clean energy from solar, wind, water, biomass and geothermal sources has the right to feed this energy into the public grid and to receive compensation. The operator can also use the electricity immediately themselves, which in light of rising electricity prices makes increasing economic sense. In July, the Bundestag approved a number of significant changes to the EEG, which went into effect on August 1st.

First, beginning August 1st, the proceeds for electricity from large-scale plants (> 500 kW) will consist of a market premium and an electricity price directly negotiated with the customer. For small systems, existing feed-in tariffs will continue to apply.

Second, the new EEG also regulates the treatment of self-generated power, that is, the electricity that one both produces and consumes. What is new here is a "solidarity" levy of between 30 to 40 percent of the EEG levy, which will be charged by grid operators on solar power for own consumption. Solar power systems of the size typical for one and two-family homes (up to 10 kW) are exempted from this regulation. For them, there is no change from the old EEG.



EEG remuneration for solar power systems up to 500 kWp

Commissioning from up to 10 kWp
(Ct/kWh)
up to 40 kWp
(Ct/kWh)
up to 500 kWp
(Ct/kWh)
Determined annual addition 3,500 MWp 2,600 MWp 2,400 MWp 3,500 MWp 2,600 MWp 2,400 MWp 3,500 MWp 2,600 MWp 2,400 MWp
Aug. 1, 2014 12.75 12.40 11.09
Sep. 1, 2014 12.69 12.34 11.03
Oct. 1, 2014 12.56 12.62 12.65 12.21 12.28 12.31 10.92 10.98 11.01
Nov. 1, 2014 12.43 12.56 12.62 12.09 12.21 12.28 10.81 10.92 10.98
Dec. 1, 2014 12.31 12.50 12.59 11.97 12.15 12.25 10.71 10.87 10.95

Source: BSW

(Status: Aug. 1, 2014, all information without guarantee, only for the German market)



Maximum achievable income from market premium plus sales for systems from 500 kWp upwards

Commissioning from 500 up to 1,000 kWp
(Ct/kWh)
up to 10 MWp
(Ct/kWh)
Determined annual addition 3,500 MWp 2,600 MWp 2,400 MWp 3,500 MWp 2,600 MWp 2,400 MWp
Aug. 1, 2014 11.49 9.23
Sep. 1, 2014 11.43 9.18
Oct. 1, 2014 11.32 11.38 11.40 9.09 9.14 9.16
Nov. 1, 2014 11.21 11.32 11.38 9.00 9.09 9.14
Dec. 1, 2014 11.09 11.26 11.35 8.91 9.05 9.12

Source: BSW

(Status: Aug. 1, 2014, all information without guarantee, only for the German market)

The feed-in tariff and market premium are progressively reduced in line with technological progress. Additionally, a fine adjustment will be made depending on the actual annual amount of added new systems in Germany as measured by the Federal Network Agency. The values listed in the previous tables apply to new systems and remain fixed for these 20 years.



EEG levy share on self-consumption for systems >10kW

Year EEG levy share ct/kWh
2014/2015 30 percent 1.87*
from 2016 35 percent 2.18*
from 2017 40 percent 2.50*

*with an EEG levy of today 6.24 Cent/kWh

(Status: Aug. 1, 2014, all information without guarantee, only for the German market)

With the EEG levy, electricity consumers in Germany will be charged proportionally per kilowatt-hour used for the costs of supporting renewable energy. For electricity drawn from the grid, this is currently 6.24 Cent/kWh. For self-generated electricity from systems larger than 10 kW commissioned after August 1st, 2014, a reduced EEG levy of first 30 and later 40 percent will be charged. Small systems < 10 kW remain exempt.