Proposal 9 February 2010

The German government is in the process of reviewing the feed-in tariffs for electricity from solar facilities. The German solar feed-in tariffs pursuant to the German Renewable Energy Sources Act (EEG) are therefore most likely to be reduced in the course of 2010.

Please note: On 6 May 2010 the German Bundestag (parliament) adopted a slightly modified reduction of the solar feed-in tariffs. Further information on the Bundestag’s decison can be found in this post. The following summary and table therefore no longer represent the latest state of discussions about the solar feed-in tariff reductions.

It was reported that representatives of the the CDU/CSU and FDP coalition on 9 February 2010 have agreed on the following reductions:

  • Roof systems: minus 16% starting 1 June 2010
  • Freestanding facilities: minus 15% starting 1 July 2010
  • Freestanding facilities on conversion areas (former waste disposal sites or military sites): minus 11% starting 1 July 2010
  • Freestanding facilities on agricultural land: unclear, CSU proposal to exclude completely, FDP proposal only to exclude facilities on good soil
  • Generated electricity consumed within building/facility: plus EUR 0.10 up to 1 MW, details unclear
  • If newly installed capacity per year is below 3,500 MW, the feed-in tariff shall increase; amount unclear
  • If newly installed capacity per year exceeds 3,500 MW, the feed-in tariff shall decrease by an additional 2%
  • If newly installed capacity per year exceeds 4,500 MW, the feed-in tariff shall decrease by 4%
  • If newly installed capacity per year exceeds 5,500 MW, the feed-in tariff shall decrease by 6%
  • Further decrease in 2012

Based on  the proposal of 9 February 2010, the revision of the German Renewable Energy Sources Act would lead to the following new solar feed-in tariffs:

Solar radiation (§§ 32, 33 EEG)
Roof-mounted facilities
Proposal 09.02.2010
starting 01.06.2010
Current
Capacity
Up to 30 kW 32.88 39.14
Up to 100 kW 31.27 37.23
Up to 1 MW 29.59 35.23
Over 1 MW 24.67 29.37

Electricity produced is used within building/facility
Capacity Proposal 09.02.2010
starting date unknown
Current
Up to 30 kW (current)/up to 1 MW (proposal) plus 0.10 22.76

Freestanding facilities
Proposal 09.02.2010
starting 01.07.2010

normal/conversion

Irrespective of capacity (additional requirements apply, facilities on agricultural land under discussion) 24.17/25.30 28.43

Degression for solar radiation
Basic fee & bonuses
Freestanding Facilities 2010 10.0% 4)
from 2011 9.0% 4)
Roof Systems up to 100 kW 2010 8.0% 4)
from 2011 9.0% 4)
Roof Systems over 100 kW 2010 10.0% 4)
from 2011 9.0% 4)
4) Proposal 09.02.2010: if newly installed capacity per year is below 3,500 MW, the feed-in tariff shall increase; amount unclear; if above 3,500 MW, decrease by 2%; if above 4,500 MW, decrease by 4%; if above 5,500 MW, decrease by 6%; further decrease 2012, amount unclear

Please note: the above table is calculated based on information drawn from various news reports on the revision of the German Renewable Energy Sources Act that may not correctly reflect the understanding of the parties involved.

The timeline for the revision of the EEG was reported to be:

  1. Cabinet decision 24 February 2010
  2. First reading in the Bundestag (German Parliament) 22 April 2010
  3. Second and third reading 21 May 2010
  4. Submission to Bundesrat (Federal Council) 4 June 2010

Sources: Financial Times Deutschland, Spiegel Online, Frankfurter Allgemeines Zeitung, 10 February 2010, page 11

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