Taking into account the ‘actual costs of renewables’, Bundesnetzagentur, or the Federal Network Agency, has announced the tariff caps for renewable energy auctions it plans to hold in 2024.

For ground-mounted solar, the maximum tariff has been capped at €0.0737 ($0.080)/kWh, unchanged from the cap announced for auctions in 2023. However, for rooftop solar, the limit has been lowered from €0.1125/kWh to now €0.1050 ($0.11)/kWh (see Germany Caps Ground Mounted PV Tender Tariff At €0.0737/kWh).

Explaining the rationale for not keeping the same level for rooftop solar, the agency stated, “Compared to the last determination, a slightly lower level is sufficient to enable adequate bids. The reasons for this are the fall in the forecast costs of rooftop systems and the lack of significant additional bids above a value of €0.1050/kWh in the last bidding round.”

If the tariffs were not capped, the agency says, the maximum values would have dropped significantly, down to the lower regulated values provided in the Renewable Energy Sources Act—€0.0590 ($0.064)/kWh for ground-mounted solar systems and €0.0891 ($0.097)/kWh for rooftop solar systems.

These values are not sufficient, according to Bundesnetzagentur. It believes ‘costs have increased so much that profitable operation of newly planned systems with legal maximum values would not be possible to the extent required for the energy transition.’

For onshore wind, the maximum tariff limit has been capped at €0.0735 ($0.080)/kWh.