German Solar Feed-in Tariff Reduction Mid-2010

After much political debate, the German Bundestag (Parliament) on 6 May 2010 decided on a mid-year redution of the solar feed-in tarrifs. However, the Bundesrat (Federal Council) invoked the Mediation Committe (Vermittlungsausschuss) procedure to reduce the cuts.  On 5 July 2010, the Mediation Committee  agreed on a two-step reduction, with reductions becoming effective 1 July and 1 October 2010.

The German Bundestag on 8 July 2010 agreed with the proposed changes. The Bundesrat also decided not to object on 9 July 2010. The German solar feed-in tariffs pursuant to the German Renewable Energy Sources Act (EEG) will therefore be adjusted downwards as of 1 July and 1 October 2010.

Based on the Bundestag’s decisions of 8 July 2010, the following key changes will take place:

  • Installations attached to or on top of buildings: minus 13% for installations starting operation for the first time after 30 June 2010, minus a further 3% for installations starting operation for the first time after 30 September 2010
  • Other installations (in particular freestanding facilities): minus 12% for installations starting operation for the first time after 30 June 2010, minus a further 3% for installations starting operation for the first time after 30 September 2010
    • Transitory provision: no reduction if facility covered by a local development plan (Bebauungsplan) adopted (beschlossen) before 25 March 2010 and in operation before 1 January 2011
  • Other facilities on conversion areas from economic, traffic, residential or military use and areas that had already been sealed when the decision to set up or change a building plan was made: minus 8% for installations starting operation for the first time after 30 June 2010, minus a further 3% for installations starting operation for the first time after 30 September 2010
    • Transitory provision: no reduction if facility covered by a local development plan (Bebauungsplan) adopted (beschlossen) before 25 March 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 25 March 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 immediate vicinity of building/facility by operator or third parties for installations up to 500 kW: Payment of feed-in tariffs for consumed electricity, but the applicable feed-in tariffs will be reduced by EUR 0.1638 for up to 30 percent of the generated power and by EUR 0.12 for the remaining power
    • To benefit from this provision, solar installations have to be connected before 1 January 2012
  • 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 1 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 2 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 3 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 4 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 1 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 2 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 3 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

The above changes can be summarised as follows (in ct/kWh):

Capacity/Category 01.01.10 01.07.10 01.10.10 01.01.2011*
Up to 30 kW Building 39.14 34.05 33.03 28.74
Up to 100 kW Building 37.23 32.39 31.42 27.33
Up to 1 MW Building 35.32 30.65 29.73 25.86
Over 1 MW Building 29.37 25.55 24.79 21.56
Conversion/Sealed Areas 28.43 26.15 25.37 22.07
Other Qualified Areas 28.43 25.02 24.26 21.11

* Using a degression of 13%; as established by the Federal Network Agency

Information about earlier proposals to reduce the feed-in tariffs is available herehere and here.

The amendment to the EEG was published on 17 August 2010 in the Federal Law Gazette (Bundesgesetzblatt), with retroactive effect as of 1 July 2010.

1 Response to “German Solar Feed-in Tariff Reduction Mid-2010”


  • Excellent Post!!! Keep up the good work. I think that we might see the 4% extra digression in Jan 2011 with June certain to be near 1.5 GW like Dec 2009.

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