Decision 6 May 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. Based on this, the German solar feed-in tariffs pursuant to the German Renewable Energy Sources Act (EEG) would have been adjusted downwards as of 1 July 2010.

Please note that the Bundesrat (Federal Council) invoked the Mediation Committe procedure to reduce the cuts. Details of the final version can be found here.

Based on the Bundestag’s decisions of 6 May 2010, the following key changes were planned:

  • Installations attached to or on top of buildings: minus 16% for installations starting operation for the first time after 30 June 2010
  • Other installations (in particular freestanding facilities): minus 15% for installations starting operation for the first time after 30 June 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 11% for installations starting operation for the first time after 30 June 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 01.01.2010 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 24.67 21.96
Conversion/Sealed Areas 28.43 25.30 22.52
Other Qualified Areas 28.43 24.16 21.50

* Assuming a degression of 11%

Information about earlier proposals to reduce the feed-in tariffs is available here and here. The proposal was ultimately changed because of a compromise reached at the Mediation Committee on 5 July 2010. Details of the final version of the additional 2010 reduction can be found here.

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