EEG 2014: The New Monthly Reduction Regime for Solar

The new EEG 2.0 introduces new provisions on the regular monthly reduction of support for PV installations as of 1 August 2014. For September we will have a fixed degression of 0.5%. As of 1 October degression will be modified quarterly based on the installed capacity of PV installations in relation to the new target corridor.

The calculation of EEG rates for newly installed PV systems starting 1 August 2014 is somewhat complicated. Below, we outline our current understanding of the new provisions.

1. How to Calculate Degression

For August, the EEG 2014 has set a new support base for feed-in tariffs or the market premiums on which degression will be calculated. For September 2014, there will then be a fixed degression of 0.5%. Afterwards, the monthly degression will be determined quarterly.

The regular monthly reduction of 0.5% will be increased or decreased depending on newly commissioned capacity in the preceding reference 12 months. Degression will increase (i.e. the reduction will be higher) if the installed capacity of PV installations exceeds the so-called target corridor. It will decrease – or will actually turn into an increase – if it falls below the target corridor.

The new target corridor in the EEG 2.0 is 2,400 to 2,600 MWp (Section 31 para. 1 EEG 2014). To determine where the amount of newly installed capacity stands in relation to the target corridor, the Federal Network Agency will look at new capacity in a preceding one year reference period. The calculation of the reference period – in legalese – is the period after the last calendar day of the fourteenth month and prior to the first calendar day of the last month (Section 31 para. 5 EEG 2014). For the first calculation of the degression under the EEG 2014 as of 1 October 2014, this means that the reference period will then be 1 September 2013 to 31 August 2014.

The two tables below show the degression rates both under the previous EEG 2012 and the new EEG 2014:

EEG 2012 EEG 2014
> 7,500 MW 2.8% > 7,500 MW 2.8%
> 6,500 MW 2.5% > 6,500 MW 2.5%
> 5,500 MW 2.2% > 5,500 MW 2.2%
> 4,500 MW 1.8% > 4,500 MW 1.8%
> 3,500 MW 1.4% > 3,500 MW 1.4%
Target corridor: 2500 to 3500 MW 1.0% > 2,600 MW 1.0%
< 2,500 MW 0.75% Target corridor: 2,400 to 2,600 MW 0.5%
< 2,000 MW 0.5% < 2,400 MW 0.25%
< 1,500 MW 0.0% < 1,500 MW 0.0%
< 1,000 MW -0.5% (increase) < 1,000 MW 0.0% plus increase 1.5% once at beginning of quarter

As can be seen from the table above, changes in degression rates affect the range starting 2,600 MWp and lower, where monthly reductions under the EEG 2014 are now lower than before, or the increase higher.

2. Feed-in Tariff/Market Premium Base

The two tables below show the PV feed-in tariffs and the market premium support basis for July, August and September 2014:

Solar Feed-in Tariffs
Small Installations up to 500 kWp
§ 32(2) EEG 2012/§ 51(2) EEG 2014 (Roofs/Noise Walls) § 32(1) EEG 2013/§ 51(1) EEG 2014 (Other)
up to 10 KWp up to 40 kWp up to 500 kWp up to 500 kWp
Start of Operations
EEG 2012
from 01.07.2014 12.88 12.22 10.9 8.92
EEG 2014
from 01.08.2014 12.75 12.4 11.09 8.83
from 01.09.2014 (0.5% degression) 12.69 12.34 11.03 8.79

 

Solar Market Premium
Compulsory from 500 kWp
§ 32(2) EEG 2012/§ 51(2) EEG 2014 (Roofs/Noise Walls) § 32(1) EEG 2013/§ 51(1) EEG 2014 (Other)
up to 10 KWp up to 40 kWp up to 1 MWp up to 10 MWp up to 10 MWp
Start of Operations
EEG 2012
from 01.07.2014 12.88 12.22 10.9 8.92 8.92
EEG 2014
from 01.08.2014 13.15 12.8 11.49 9.23 9.23
from 01.09.2014 (0.5% degression) 13.08 12.74 11.43 9.18 9.18

As can be seen from the tables above, the actual amount that is paid to the operator depends on whether he is eligible to receive the feed-in tariffs or the market premium. A reduction of 0.4 ct/KWh applies if feed-in tariffs are chosen (Section 37 para.3 EEG 2014).

3. Total Cap

The maximum of 52 GWp (Section 31(5) EEG 2014) at which support for new PV systems will be stopped has remained unchanged.

4. Publication of Future Feed-in Tariffs and Market Premium Basis

The Federal Network Agency will publish the new figures on solar feed-in tariffs and market premium support on their website, based on newly commissioned capacity in the relevant reference period. The figures are currently available for August and September.

Source: EEG 2014Federal Network Agency

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