Skip to content

The question at hand concerns the continued value of implementing miniature solar power stations.

Federal Minister of Economy, Katharina Reiche, states that small PV power plants no longer necessitate subsidies. Possible implication: End for private solar installations?

Solar Plant Efficiency: A Valuable Investment?
Solar Plant Efficiency: A Valuable Investment?

The question at hand concerns the continued value of implementing miniature solar power stations.

Federal Minister of Economics Katharina Reiche is contemplating a move that could reshape the renewable energy landscape in Germany. The minister is considering abolishing the EEG feed-in remuneration for new small private solar systems, a decision that questions a central instrument of the energy transition.

Introduced around 25 years ago, the EEG promotion was designed to make renewable energies economically viable compared to conventional power plants. However, with the global expansion and mass production of solar modules, prices have significantly reduced. Today, installing a PV small system can overload the power grid, which is often overloaded by many feeding solar systems, particularly on sunny days.

Katharina Reiche wants to reduce the unnecessary expense of the power system caused by the overloading of the grid by solar systems. She finds this overloading no longer timely, especially during midday summer peaks. The minister believes that new small PV systems are already profitable in the market and do not need promotion.

The proposal does not affect existing PV systems. The feed-in remuneration for small solar systems under 10 kWp will be reduced to 7.87 cents per kWh as of August 1, 2025. This reduction is aimed at slowing the expansion of solar installations due to concerns about grid overload and high costs for grid expansion.

The minister's proposal has sparked controversy, with critics arguing that it could hinder the expansion of renewable energies. The increasing number of negative electricity prices is a concern due to the overloading of power grids. On the other hand, supporters of the proposal argue that it is necessary to address the issue of grid overload and reduce costs for consumers.

The Augsburger Allgemeine reported on Katharina Reiche's proposal, highlighting its potential implications for farmers. Many farmers in Germany have installed solar systems on their land, taking advantage of the EEG feed-in remuneration. The reduction in remuneration could affect their profits, making it essential for the government to consider alternative measures to support farmers in their transition to renewable energy.

The topic of another article is the reduction in feed-in remuneration for PV systems and why they still remain profitable. With prices for solar systems and battery storage having significantly decreased, it is possible for farmers and homeowners to invest in renewable energy without relying on subsidies. The energy transition continues, and the debate over the role of subsidies in driving renewable energy expansion is far from over.

Read also: