Industry Update | New Solar Regulation in Germany: What It Means for Solar and Battery Storage

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Germany has introduced a major regulatory shift affecting the solar energy sector, with new rules coming into effect from February 25, 2025: https://www.recht.bund.de/bgbl/1/2025/51/VO.html. The "Solar Peak Act" aims to address temporary electricity oversupply by changing the way photovoltaic (PV) systems receive compensation under the Renewable Energy Sources Act (EEG).

Key Changes in the New Regulation

From now on, newly installed solar PV systems of 2 kW or more will no longer receive EEG remuneration when electricity prices turn negative. This applies to all installations commissioned from February 25, 2025, onwards. However, under certain conditions, the lost payments can be recovered after 20 years.

What is EEG remuneration?

The Renewable Energy Sources Act (EEG) ensures financial incentives for renewable energy operators by offering a fixed tariff for electricity fed into the grid. The new regulation suspends this support during periods of negative electricity prices, meaning PV operators will no longer be guaranteed earnings under such conditions.

Implications for Solar Operators

• New solar systems (≥2 kW) will not receive EEG remuneration during negative electricity prices.
• Lost payments can be recovered after 20 years, provided smaller system meet smart metering requirements, (≤100 kW) and larger solar systems (≥100 kW) must participate in direct marketing to comply with grid management requirements.
• Existing PV installations can voluntarily switch to the new model and receive a 0.6 cent/kWh premium on their current EEG remuneration.

The regulation is intended to stabilize electricity market values, prevent excess grid loads, and create incentives for investment in energy storage.

Why Battery Storage Is Now More Important Than Ever

With this change, the role of battery storage in the renewable energy market becomes even more crucial. Energy storage can help solar operators manage revenue losses by storing excess generation during peak hours and selling electricity when market prices are more favorable.

At Re-Twin Energy, we help to evaluate the business case for battery storage in combination with solar projects.

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