FILE PHOTO: A view of solar panels on the roof of a Metro logistics centre. (is associated with: «Germany’s solar industry says government plans threaten sector») Bernd Thissen/dpa
The German solar industry says plans by the Economy Ministry to eliminate subsidies threaten the industry.
The planned abolition of support for new, small solar systems from 2027 in particular could cause investments worth billions to collapse and put tens of thousands of jobs at medium-sized businesses and in the skilled trades at risk nationwide, the German Solar Association (BSW) warned.
The ministry, led by Katherina Reiche of Chancellor Friedrich Merz’s conservative Christian Democratic Union party (CDU), published its drafts on Friday evening for a new version of the Renewable Energy Act (EEG) and the Grid Package.
Under the plans, operators of solar systems with up to 25 kilowatts of installed capacity that are built from 2027 would be guaranteed a payment for a maximum of only 36 months.
After this transition phase, they would have to switch to direct marketing, meaning they would need to sell their electricity on power exchanges via a service provider, where prices fluctuate and are not predictable.
“The plans are completely out of date. They keep private households dependent on fossil energy for longer and put tens of thousands of jobs in the solar industry at risk,” said BSW chief executive Carsten Körnig.
The German Renewable Energy Federation (BEE) agreed. “Instead of reliable investment conditions, the federal government is creating new uncertainty,” said BEE President Ursula Heinen-Esser.
Lower compensation if systems are shut down by force
For new solar and wind systems built in regions that already have grid bottlenecks, the plans call for reduced compensation if these systems have to be shut down temporarily to prevent a grid overload. That means large parts of Germany would become exclusion zones for renewable energies, said the BSW.