Germany concludes draft detailing drastic cutbacks for PV systems 40 kW and over

From pv magazine Germany

The draft Energy Sources Act, which includes surprisingly large cuts to solar subsidies for plants 40 kW and over starting on January 1, 2019, only became known last week, and has since thrown the industry into a state of uncertainty. The residential sector will not be affected.

Citing massive over subsidization, the German Federal Government wants to cut subsidies by around 20% from the start of the new year, to €0.0833/kWh*. This decision was taken by the Federal Cabinet on Monday, according to the Federal Ministry of Economics in a statement yesterday.

German Solar Industry Association, BSW-Solar, reports that there is already opposition from the ranks of the CDU, CSU and SPD coalition groups.

“It is now up to the Federal Parliament to make the draft bill a sensible energy transition law and to remove obstacles to PV, such as the 52 GW cap or the self-consumption levy,” said managing director Carsten Körnig.

The draft bill also includes additional tenders for PV and onshore wind totaling 4 GW each between 2019 and 2021. Innovative tenders should further be a feature, as should the EEG privilege of new combined heat and power plants.

Timelines for the plans were not, however, communicated in the draft.

In his statement on the Cabinet's decision, Federal Minister for Economic Affairs and Energy Peter Altmaier emphasized that just the costs to consumers have been considered. “We are setting the central course for a safer and more affordable energy transition,” he said. “With the special tenders, we are making even faster progress in expanding renewable energies. At the same time, we are accelerating grid expansion with the Grid Expansion Acceleration Act – NABEG.”

The draft will now go to the Federal Parliament for review.

*The article was amended on 07.11.2018 to correct the subsidy amount. It should read €0.0833/kWh not €0.833/kWh.