The German government has approved plans for new wind and solar plants to sell their electricity directly on the open market, moving away from guaranteed prices. New solar PV systems will no longer receive state-subsidised feed-in tariffs if massive renewable injection into the grid leads to negative prices at certain times, which should incite operators to invest in energy storage systems. In addition, the obligation to direct marketing will to be extended from the current 100 kW threshold to 25 kW in three annual steps. Installations below the threshold values will continue to receive a feed-in tariff.
The reform addresses issues of electricity surpluses, particularly during summer, which can lead to negative pricing, and aims to further develop smart meter rollouts. The draft law also contains key measures to stabilise electricity costs in Germany, mandating electricity suppliers to protect their private electricity customers against significant price increases.
This change aims to integrate renewables into the energy system more effectively, as the country seeks to increase renewable energy’s share to 80% of electricity consumption by 2030 (55% in 2023).