Germany: Changes to FITs, still an open discussion

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The BSW-Solar sees quarterly reductions to the subsidies as logical, but also thinks that monthly reductions may be helpful, as Carsten Körnig said at a press conference on Friday. Körnig expects a decision to be made on the political level by April or May latest. The ammendment to the EEG can be done relatively quickly as the Federal Council does not need to get any consensus for any changes.

In the coming week, the working groups representing energy politics from the CDU (Christian Democratic Party) and the FDP (Free Democratic Party) will meet. They will then internally decide if Environment Minister Norbert Röttgen’s suggested changes to the EEG (German Renewable Energy Act) receive a majority vote.

A multi-tier reduction scenario has been discussed within the PV association before, but this time the proposal comes directly from Röttgen. It remains uncertain how he sees the new reduction-structure in place. According to BSW-Solar and Röttgen, the maximum reductions annually ought not be over 24 percent.

The BSW-Solar sees the situation of investors in a relatively optimistic light. According to Körnig, the lead times for installation of small PV systems is about six weeks and thus, the returns of investment for investors remains on a certain level of predictability even if reductions are on a monthly basis. Körnig expressed no view on larger PV installations which require longer lead times.