Abolishing fixed support for rooftop solar could jeopardise expansion in Germany – analysis
Clean Energy Wire
The German economy ministry is discussing the abolition of support in the form of feed-in tariffs for small rooftop solar power systems, which could significantly reduce private investment in such systems and slow down the expansion of solar energy, found an analysis by research institute Fraunhofer ISE. The ministry led by conservative Christian Democratic Union (CDU) minister Katherina Reiche instead wants to introduce mandatory direct marketing, arguing that the technology has matured enough to compete without state support.
According to Fraunhofer ISE, cutting fixed support will lead to lower economic efficiency of solar PV battery systems, higher costs, and greater uncertainty for private households. The report was commissioned by EWS Schönau, a local citizens’ energy utility in southern Germany.
Under direct marketing, households would need to consume a higher share of the electricity of their PV installation themselves to achieve the same economic return as under the current Renewable Energy Act (EEG) remuneration scheme based on fixed remuneration through feed-in tariffs, the researchers found. This would push households to opt for smaller systems, thereby likely reducing the total roof area covered by solar panels.
Small rooftop PV systems (up to 30 kilowatt-peak) in 2025 accounted for over a third of the installed solar capacity in Germany. They made up 5.2 of the 17.5 gigawatt-peak of new solar power plants put into operation in the same year, according to industry figures.
The report highlighted that the processes involved in direct marketing would need to be simplified in order enable a large-scale use of smaller solar systems. However, the authors concluded that even with relevant changes, direct marketing of very small amounts of electricity involves high costs that will scare off private investments in the technology.
A group of associations related to Germany’s solar power sector have urged the government to continue supporting small and roof-mounted solar PV systems, for fear that future expansion of the technology is at risk. While the expansion of solar power has made great strides in Germany in recent years, current buildout levels are still below what is needed for the country to comply with national renewable power targets.