Cabinet Agrees on New Solar Feed-in Tariffs

The German Government has today agreed on new solar feed-in tariffs.

The Cabinet agreed on a “wording aid” (Formulierungshilfe) for the upcoming amendment of the feed-in tariff provisions of the German Renewable Energy Sources Act (EEG). The draft amendment will be submitted to the Bundestag by the parliamentary groups of the ruling CDU/CSU/FDP coalition for further discussion and decision.

Key elements of the amendment shall be:

  • The target for annual increase of solar generation shall be increased from 1,700 MW to 3,500 MW.
  • The feed-in tariff for roof mounted systems shall be reduced by 16% starting 1 July 2010.
  • The feed-in tariff for freestanding facilities by 11% on conversion areas and by 15% on other areas, starting 1 July 2010 in both cases.
  • The regular yearly degression of solar feed-in tariffs shall be tied closer to the increase in generation capacity:
    • If the target of additional 3,500 MW is exceeded, the feed-in tariff shall be reduced by an additional 2% per additional 1,000 MW  at the end of 2010 and by an additional 3% at the end of 2011 (in addition to the regular 9% degression)
    • If the increase of additional solar generation capacity stays below 2,500 MW the feed-in tariffs shall decrease more slowly.
  • The incentive for private household not to feed the solar power into the grid (but to use it directly) shall be increassed from currently 3.6 to 8 c/kWh.
  • The incentive to use solar power directly (and not feed it into the grid) shall be extended to businesses, as it shall in the future cover installations up to 800 kW installed capacity.
  • The category of agricultural land shall be deleted in the EEG as of 1 July 2010.
  • Transitional provisions shall apply for freestanding facilities in the planning phase but will not have started to operate when the amendments will enter into force. Installations for which a zoning plan (Bebauungsplan) existed at the end of 2009 can be completed until the end of 2010. The one-time reduction shall not apply to such installations.
  • Commercial and industrial areas as well as areas alongside autobahns and railway lines shall be included as new area categories in the EEG.

Source: Federal Environment Minstry

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