Overview
- The cabinet approved the EEG reform and a Netzpaket on July 29 that ends many fixed feed‑in guarantees for small rooftop solar, forces direct marketing with transitional payments, and allows network operators to limit compensation in congested areas.
- Earlier in July the new Gebäudemodernisierungsgesetz took effect removing strict renewables quotas for new heaters while introducing a phased 'Biotreppe' that raises renewable fuel shares from 10% in 2029 to 60% by 2040 and requires suppliers to be non‑fossil by 2045.
- The government says it cannot yet quantify the law’s climate impact and key details still need parliamentary approval and EU state‑aid clearance before the EEG changes take full effect.
- Experts and local utilities warn the package raises near‑term costs and planning risks for households and municipalities because rising green‑gas quotas, higher network charges and lower heat‑pump subsidies already applied by KfW make new gas heaters a potential long‑term cost trap.
- Industry groups welcome the shift as a cost‑containment move while renewables associations and consumer advocates fear it will slow PV and district heating growth, and analysts note rollout depends on grid upgrades and uncertain large‑scale biofuel supplies.