The German Solar Energy Association has warned that the changes the Ministry of Economy intends to implement could hinder the expansion of solar energy projects within Germany.
The union stressed that the proposal to eliminate subsidies for new small solar energy systems from 2027 could lead to a decline in investments estimated at billions of euros, as well as putting tens of thousands of jobs in medium-sized companies and the crafts and industries related to solar energy at risk.
The Ministry of Economic Affairs, headed by Katharina Reiche, published draft amendments to the Renewable Energy Act as part of what is known as the "Grid Package." The proposals stipulate that new solar energy systems with a capacity not exceeding 25 kilowatts, scheduled for installation from 2027 onwards, will be granted a guaranteed purchase tariff for only 36 months, after which their owners will be required to sell the electricity directly through energy exchanges.
The union's chief executive, Carsten Cornish, described the plans as unrealistic, stressing that they would increase households' dependence on fossil fuels and harm the solar energy sector.
The amendments also include reducing compensation for new solar and wind power plants in areas with bottlenecks in electricity grids if they are forced to temporarily halt production, which the union considers a measure that will make large parts of Germany less attractive for investment in renewable energy projects.
Green Party politician Michael Kellner criticized the "grid package," arguing that it gives grid operators too much time to address bottlenecks, which will slow the expansion of renewable energy and restrict rooftop solar power production.
Renewable energy sources currently account for 58% of electricity production in Germany, while the government aims to raise this to 80% by 2030. The Minister of Economy confirms that the reforms aim to reduce subsidy costs without abandoning the goals of the energy sector transformation.
