German solar groups say removing feed-in tariffs for new PV systems up to 25 kW, as proposed under the draft EEG 2027, could sharply impact investment and threaten jobs
Industry associations argue that stricter direct marketing rules and proposed grid reforms would make many renewable energy projects less financially attractive
BEE and BSW-Solar are calling on lawmakers to substantially revise the EEG 2027 draft before it proceeds through Parliament
Germany's renewable energy sector has called for major changes to the draft Renewable Energy Sources Act (EEG) 2027, warning that the proposed legislation could significantly reduce investment in rooftop solar and slow the country's energy transition.
Germany’s Federal Ministry for Economic Affairs and Energy (BMWi) says the draft EEG 2027 aims to make the country’s renewable energy expansion more cost-efficient, market-oriented and grid-friendly. It aligns renewable energy growth with grid capacity and EU-mandated resilience auctions, while promoting solar energy expansion with storage systems.
The government prioritizes ground-mounted PV projects under EEG 2027 over rooftop solar projects. It has proposed to increase the annual auction volume for first-segment solar PV (referring to ground-mounted projects) from 9.9 GW (under EEG 2023) to 14 GW for 2027–2032, adding 4.1 GW of auction capacity each year.
At the same time, the new policy regime ends innovation tenders. Focus will be on resilience tenders.
However, the plan has come under fire from the renewable energy industry. The German Renewable Energy Federation (BEE) and the German Solar Association (BSW-Solar) said the draft, together with the proposed grid connection package, creates uncertainty for investors. It could put renewable energy projects, jobs and future capacity growth at risk.
A key concern for the solar industry is the proposal to end feed-in tariffs (FIT) for new solar PV systems of up to 25 kW, from 2027. According to BEE, these payments remain a decisive factor for most households and small businesses considering rooftop solar investments.
The federation warned that removing the incentive would undermine one of Germany's largest solar market segments.
Additionally, draft EEG 2027 also lowers the threshold for mandatory direct marketing to below 100 kW after a 36-month transition period. This means all new PV systems below 100 kW will have up to 36 months after commissioning to sell power generated into the wholesale market under the upcoming regime. They will be provided a temporary payment to ease the transition, which will be lower than the current FIT.
The ministry explains, “Renewable energies have moved to the heart of the electricity supply system. Consequently, the ‘produce and forget’ model previously applied to smaller installations is no longer appropriate for the current era. In the future, electricity feed-in must always be aligned with demand and market price signals.”
Industry groups say this would increase costs and complexity for smaller solar systems, reducing demand in the small-scale PV segment by around two-thirds. Even small-scale hydropower plants face an ‘existential threat’ with the proposed cuts.
BEE argues that even for operators and direct marketers, the scheme is ‘neither necessary nor economically viable’ as many technical and administrative barriers remain unresolved.
The German solar energy association BSW-Solar has similar concerns. It warns that eliminating support for new small rooftop solar systems could lead to billions of euros in lost investment and threaten tens of thousands of jobs across Germany's solar sector and skilled trades.
“The plans are completely outdated. They keep private households dependent on fossil fuels for longer and jeopardize tens of thousands of jobs in the solar industry,” said Carsten Körnig, CEO of BSW-Solar.
The association also criticized the planned reduction in the direct marketing threshold, saying many rooftop solar developers already struggle to secure direct marketing services because of technical and procedural challenges. This subject has already divided the industry (see Solar, Storage Stakeholders Differ On Germany’s Grid Overhaul).
Highlighting the government’s proposal to reduce compensation during periods of grid congestion, BSW-Solar believes it could make several parts of Germany ‘no-go areas’ for renewable energy and discourage investments.
The industry also highlights stricter grid connection rules proposed in the draft under which grid operators will be able to reduce renewable power output without compensation in congested areas. They will be allowed to impose power limits on new solar and wind projects, and potentially charge developers for grid connection costs.
“In an industry with around 436,000 employees, investment decisions in the tens of billions of euros are already pending for 2027 and 2028 alone, and these are now at considerable risk,” warns the BEE.
Beyond rooftop solar, BEE criticized the proposed framework for Contracts for Difference (CfDs). Under the two-way CfD system, selected projects must return excess profits when electricity prices are very high, while continuing to receive market-based support when needed. The rule would apply to new renewable energy projects of 100 kW or larger, except for biomass plants.
The CfD system is already in force in countries like the UK and was most recently introduced in China to replace FITs after years of an FIT-based mechanism (see World’s Biggest Solar Market Moving Towards CfD Mechanism). It led to a rush to install projects before the deadline of June 1, 2026, following which there was a significant decline in monthly installations. As the world’s largest solar market adjusts to the market-based pricing mechanism, China is forecast to register its first decline in annual solar installations, bringing down the global total (see CPIA: China Solar Installations To Dip In 2026 Before Resuming Growth).
The German renewable energy industry is of the view that the proposed CfD rules could reduce investment by making power purchase agreements (PPAs) harder to use and limiting developers' flexibility. It asks for more flexible rules, including a buffer before repayments start, increasing the threshold to 200 kW, and the option to switch between PPAs and EEG support.
“Without a market value corridor, the incentive for lower bids disappears – subsidy costs rise, and consumers pay more. Without a PPA option, green electricity remains too expensive for industrial customers, which jeopardizes Germany's competitiveness as a business location,” stated BEE President Ursula Heinen-Esser.
The association also argued that the proposals do not sufficiently support measures such as energy sharing, flexible use of existing grid connection points, improved storage integration and faster deployment of smart meters.
Heinen-Esser has called for the EEG and grid connection package to be revised into a coordinated framework capable of supporting investment and accelerating the energy transition. The bill needs to clear the Parliament to become a law.
“Instead of new obstacles and ineffective stopgap measures, we need a boost for the expansion of solar energy, storage, and grids,” said Körnig.
