Overview

• Federal Economics Minister Katherina Reiche has proposed to stop the 20-year feed-in tariff for new small and private photovoltaic installations.
• Existing rooftop PV systems would be grandfathered, preserving their current feed-in payments for the remainder of their contracted periods.
• Driven by €9.5 billion in subsidy payments through July and recurring grid congestion, the plan shifts renewable growth toward market-based models that help fund network upgrades.
• Under the proposal, new PV projects must feature controllability, paired battery storage and direct electricity marketing to share in grid-expansion costs.
• Industry groups and Green politicians warn that removing the tariff without replacement schemes could extend payback to over 30 years, discourage investment, jeopardize solar build-out targets and create political and market uncertainty.