Germany's Bundestag today passed a new set of energy regulations, including a new version of the country's renewable energy law EEG 2023, that will lead to an increase in long-term protective electricity prices for solar energy.
The new regulations will bring some changes to the PV industry, the most important of which is the introduction of two separate long-term protective tariffs. Owners of rooftop PV systems can now choose to use part of their rooftop power and accept a lower tariff, or connect 100% of their rooftop power to the grid, but get paid extra on top of the standard tariff.
The plan was introduced to incentivize the full use of rooftops for photovoltaics. Previous incentives encouraged homeowners and businesses to adjust PV systems to their electricity usage, leaving vast rooftop areas unutilized.
For example, for PV systems up to 10 kW, the electricity price will increase from €0.0693 ($0.0760) to €0.0860 per kWh. Owners who decide not to use their own electricity at all will receive a full grid connection bonus of €0.048/kWh, with a combined remuneration of €0.134/kWh.
For photovoltaic systems ranging from 10 kW to 40 kW, the electricity price will increase from €0.0685/kWh to €0.0750/kWh; for solar arrays from 40 kW to 750 kW, the electricity price will increase from €0.0536/kWh to €0.0620/kWh.
Based on previous criticism, the government has decided to slightly reduce the full long-term protective incentive. The electricity price for PV systems below 10 kW will be reduced from €0.0687/kWh to €0.0480/kWh, and for installations ranging from 10 kW to 40 kW, the electricity price will be reduced from €0.0445/kWh to €0.0380/kWh. In addition, the government lowered the electricity price for solar projects with capacities between 40 kW and 100 kW from €0.0594/kWh to €0.0510/kWh, and from €0.0404/kWh to €0.0320/kWh for 100 kW to 300 kW installations .
The government has also enabled the option of deploying two different PV systems on one property for individuals and businesses. This gives homeowners the opportunity to register one system as part-on-grid and use part of the solar power themselves, while a second PV system can utilize the entire rooftop space and receive full grid-connection incentives. This measure is especially beneficial to farmers, who can, for example, register a 15 kW system for their own use and a 70 kW system for full grid connection. But the premise is that the two systems use independent meters. The 2023 EEG revision also introduces procedures to simplify taxation and speed up grid connection.
In addition, the new terms stipulate that the size limit for energy communities will be raised from 1 MW to 6 MW, and that rooftop PV integration will take place through the grid operator's portal.