Small rooftop solar installations in Germany could lose guaranteed funding – media

Roof-mounted solar power installations on private homes in Germany could soon lose eligibility for guaranteed feed-in remuneration, according to a reform draft from the economy ministry seen by news site ntv. The draft says small private solar panels should be excluded from public support because many are already profitable thanks to lower installation costs and a high share of own consumption, ntv said. Installations with a capacity of up to 25 kilowatts (kW) would therefore drop out of the country’s long-standing support scheme in an update to the Renewable Energy Act (EEG) expected later this year. 

A spokesperson for the ministry, which is headed by conservative Christian Democrat (CDU) minister Katherina Reiche, did not want to confirm the plans because work on the reform is still in progress. However, he said that “cost efficiency and supply security targets did not get enough attention in the past years.” Taxpayers were currently funding installations that are already profitable, while the fast expansion of solar power capacity posed challenges for grid capacity and system integration, the spokesperson added. Minister Reiche repeatedly suggested that new small solar power installations should lose their right to the public support scheme that pays operators guaranteed remuneration for 20 years. 

Renewable energy federation BEE said the reported support cuts would amount to an "attack" on renewables. “The outlined measures block a successful continuation of the energy transition and therefore threaten jobs and our resilience to crises,” said BEE head Ursula Heinen-Esser. Measures listed in the leaked draft, which besides the end of support for small private solar installations also include mandatory direct marketing of the produced electricity, would have “disastrous consequences” for the industry and for public participation in the transition to clean energy, Heinen-Esser warned. A stated commitment by the ministry to stick to Germany’s renewables expansion path would not fit with the measures described in the draft, she added. “Renewables are one of the few growing industries that continue to create jobs in Germany,” Heinen-Esser said.

Industry group BSW Solar said the reform could slash tens of thousands of jobs and put Germany’s emissions reduction targets out of reach. “If these measures are really implemented, this will largely spell the end of solar power installations on private homes,” the solar industry lobby group said. Guaranteed remuneration remains essential to make the installations economically viable, said association head Carsten Körnig. This was compounded by the mandatory direct marketing clause, for which there is not even adequate infrastructure of smart metering systems in place, he added. 

The opposition Green Party linked the alleged cuts to a planned reform of Germany’s heating energy regulation. A government proposal aims to drop a mandatory share of renewable energy in new heating systems and instead use a “green” fuel quota for fossil boilers, a decision that critics say will lead to higher costs for consumers and a slower roll-out of clean energy technologies. “First, people get a cost explosion in heating, and now they are being punished if they have a solar power installation on their roof,” said the Greens’ parliamentary group leader, Katharina Dröge. 

A review of Germany’s support system for renewable energy sources has been a key policy goal of economy minister Reiche since taking office in May 2025. While she argues that steps to control the expansion of renewable energy capacity are needed to keep costs in check and allow grid expansion to catch up, critics say planned measures will slow the energy transition and keep fossil power business models viable for longer.