Germany's Federal Network Agency has lowered the price ceiling for rooftop solar tenders in 2024 to 0.105 euros (about $0.12)/kWh from 0.1125 euros (about $0.12)/kWh in 2023.
The price cap for onshore wind and ground-mounted solar (€0.735 (~$0.80)/kWh) remains the same as in 2023.
The price ceiling for rooftop solar has been lowered in line with falling project costs, according to the agency. In the last round of bidding in 2023, there were not many bids above 0.105 euros (about 0.12 US dollars)/kWh. The 191MW rooftop solar tender in November 2023 was 195% oversubscribed. The weighted average price of the winning capacity is 0.0958 euros (approximately $0.10)/kWh, which is 0.006 euros (approximately $0.0065)/kWh lower than the previous round of bidding.
Klaus Müller, President of the Federal Energy Network Agency, said, "We are establishing a reliable framework for the tender. The price cap takes into account the actual costs of renewable energy. In the near future, we will consider tenders for biomass, biomethane and innovative Set a price cap."
If the Federal Energy Network Agency does not set a new price cap, the price cap will drop to the lower limit specified in the Renewable Energy Act, which is 0.588 euros (approximately US$0.64)/kWh for onshore solar and 0.590 euros (approximately 0.590 euros)/kWh for ground-mounted photovoltaic systems. (approximately US$0.64)/kWh, rooftop solar energy is €0.891 (approximately US$0.97)/kWh.
Due to a lack of interest, the initial tender volume for the onshore wind power tender held by the Federal Energy Network Agency in September 2023 was reduced from 3192MW to 1667MW, with only 1436MW being subscribed.
The Federal Network Agency has announced new price caps against the backdrop of changes in the costs and interest rates for developing and operating projects.
Taking into account the poor response to the solar and wind energy tenders in 2022, the Federal Network Agency increased the maximum electricity price limit by 25% in 2023. Since then, the response to the solar tender has improved significantly. In the solar energy and energy storage tender held in October 2023, a total of 32 projects won the bid, with the lowest electricity price being 0.077 euros (approximately US$0.081)/kWh. The tender was 95% oversubscribed, with a total of 53 bids received for a total bid volume of 779MW.
In the third quarter of 2023, Germany's solar installed capacity was 3.4GW, an increase of 79% from 1.9GW in the same period last year, but a 5.6% decrease from 3.6GW in the previous quarter.