Proposal 3 March 2010

The German federal 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 about to be adjusted downwards.

On 3 March 2010 the German federal government politically agreed on key aspects of the upcoming reduction of the solar feed-in tariffs. A summary of this proposal can be found in this post.

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 The following summary and table therefore no longer represent the latest state of discussions about the solar feed-in tariff reductions.

Based on the federal government’s “wording aide” (Formulierungshilfe) of 3 March 2010, the following key changes have been politically agreed:

  • Installations attached to or on top of buildings: minus 16% starting 1 July 2010
  • Other installations (in particular freestanding facilities): minus 15% starting 1 July 2010
    • Transitory provision: no reduction if facility covered by a local development plan (Bebauungsplan) adopted (beschlossen) before 1 January 2010 and in operation before 1 January 2011
  • Other facilties on areas that had already been sealed when the decision to set up or change a building plan was taken: minus 11% starting 1 July 2010
    • Transitory provision: no reduction if facility covered by a local development plan (Bebauungsplan) adopted (beschlossen) before 1 January 2010 and in operation before 1 January 2011
  • Other facilities on conversion areas from economic or military use: minus 11% starting 1 July 2010
    • Transitory provision: no reduction if facility covered by a local development plan (Bebauungsplan) adopted (beschlossen) before 1 January 2010 and in operation before 1 January 2011
  • Other facilities on green areas: only if facility covered by a local development plan (Bebauungsplan) adopted (beschlossen) before 1 January 2010, if area at the time when the decision on drawing up or amending the local development plan was adopted had been used as cropland for the three years preceding this point, and if facility will be in operation before 1 January 2011
  • Generated electricity consumed within building/facility: plus EUR 0.12 up to 800 kW
  • Increase in 2011 degression if certain additional capacity thresholds are exceeded:
    • If capacity registered after 31 May 2010 and before 1 October 2010 multiplied by 3 exceeds 3,500 MW, the 2011 feed-in tariff degression shall increased by 2 percentage points
    • If capacity registered after 31 May 2010 and before 1 October 2010 multiplied by 3 exceeds 4,500 MW, the 2011 feed-in tariff degression shall increased by 4 percentage points
    • If capacity registered after 31 May 2010 and before 1 October 2010 multiplied by 3 exceeds 5,500 MW, the 2011 feed-in tariff degression shall increased by 6 percentage points
    • If capacity registered after 31 May 2010 and before 1 October 2010 multiplied by 3 exceeds 6,500 MW, the 2011 feed-in tariff degression shall increased by 8 percentage points
  • Decrease in 2011 degression if additional capacity falls below certain thresholds:
    • If capacity registered after 31 May 2010 and before 1 October 2010 multiplied by 3 falls below 2,500 MW, the 2011 feed-in tariff degression shall reduced by 2.5 percentage points
    • If capacity registered after 31 May 2010 and before 1 October 2010 multiplied by 3 falls below 2,000 MW, the 2011 feed-in tariff degression shall reduced by 5.0 percentage points
    • If capacity registered after 31 May 2010 and before 1 October 2010 multiplied by 3 falls below 1,500 MW, the 2011 feed-in tariff degression shall reduced by 7.5 percentage points
  • Increase in 2012 and later degression if certain additional capacity thresholds are exceeded:
    • If capacity registered in the 12 months until 30 September of the previous year exceeds 3,500 MW, the feed-in tariff degression shall increased by 3 percentage points
    • If capacity registered in the 12 months until 30 September of the previous year exceeds 4,500 MW, the feed-in tariff degression shall increased by 6 percentage points
    • If capacity registered in the 12 months until 30 September of the previous year exceeds 5,500 MW, the feed-in tariff degression shall increased by 9 percentage points
    • If capacity registered in the 12 months until 30 September of the previous year exceeds 6,500 MW, the feed-in tariff degression shall increased by 12 percentage points
  • Decrease in 2012 and later degression if additional capacity falls below certain thresholds:
    • If capacity registered in the 12 months until 30 September of the previous year falls below 2,500 MW, the feed-in tariff degression shall reduced by 2.5 percentage points
    • If capacity registered in the 12 months until 30 September of the previous year falls below 2,000 MW, the feed-in tariff degression shall reduced by 5.0 percentage points
    • If capacity registered in the 12 months until 30 September of the previous year falls below 1,500 MW, the feed-in tariff degression shall reduced by 7.5 percentage points

Assuming these changes will be adopted, the new German solar feed-in tariffs could be summarised as follows (in ct/kWh):

Capacity/Category 01.01.2010 01.07.2010 01.01.2011*
Up to 30 kW Building 39.14 32.88 29.26
Up to 100 kW Building 37.23 31.27 27.83
Upt to 1 MW Building 35.32 29.59 26.34
Over 1 MW Building 29.37 26.14 23.26
Conversion/Sealed Areas 28.43 25.30 22.52
Other Qualified Areas 28.43 24.16 21.50

* Assuming a degression of 11%

The amendment shall be submitted to the Bundestag by the parliamentary groups of the ruling CDU/CSU/FDP coalition for further discussion and decision. As the changes are scheduled to enter into force on 1 July 2010, there is only little time for the legislative process in the Bundestag.

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