Tenant electricity surcharge

Updated: 11.01.2019

Author: Tim Sternkopf

In order to help tenants to benefit from renewable energy, small PV-plants up to 100 kW on residential buildings (§ 3 no 50 EEG 2017) are supported through the tenant electricity surcharge, if the electricity is supplied and consumed within the building itself without using the grid (§ 21 par. 3 EEG 2017). This support is lower than the feed-in tariff, but other cost factors like network charges, taxes etc. are avoided.

Eligible technologies

All the locally supplied and consumed electricity produced by solar and not transferred through the grid is eligible for a financial support in terms of a tenant electricity surcharge (§ 19 par. 1 no. 3 EEG 2017 and § 21 par. 3 EEG 2017), a fixed support tariff per kWh. The electricity, which is not consumed, is fed into the grid and reimbursed with the regular already existing feed-in tariff (§ 19 par. 1 no. 2 and § 21 par. 1-2 EEG 2017). The conditions include a maximum capacity of 100 kW and a minimum of 40% residential use of the building space (§ 21 par. 3 EEG 2017). Electricity fed into a storage is not eligible for the support (§ 21 par. 3 EEG 2017). As it does not fulfil the definition of self-consumption (§ 3 no. 19 EEG 2017), the EEG apportionment has to be paid.

Solar energy

Solar installations up to 100 kW are eligible for support.

Amount

Solar energy

The amount depends on the installed capacity and is EUR ct 8.5 lower than the feed-in tariff (§ 48 par. 2 EEG 2017, § 23b par. 1 EEG 2017), which is classified for installations <10 kW, 10-40 kW and 40 – 100 kW in addition to the deduction of EUR ct 0.4 (§ 53 par. 2 EEG 2017).

Addressees

Plant operators are eligible to receiving the Tenant electricity surcharge, if the electricity of the plant is supplied and consumed in the same building without being transferred via the grid. The residential use of the building space has to exceed 40% (§ 21 par. 3 EEG 2017). 

Procedure

Process flow

The Federal Government will present a report on the tenant electricity system until 30.09.2019 (§ 99 par. 1 EEG 2017). The Federal Network Agency will support the BMWi with the production of the report (§ 99 par. 2 EEG 2017).

Competent authority

The Federal Government will present a report on the tenant electricity system until 30.09.2019 (§ 99 par. 1 EEG 2017). The Federal Network Agency will support the BMWi with the production of the report (§ 99 par. 2 EEG 2017).

Degression

In terms of degression, the degression rate for the feed-in tariff for solar applies.

Solar energy

The degression contains a basis degression rate of 0.5% every month (§ 49 par. 1 EEG 2017). The EEG 2017 has defined a target-corridor for the development of solar power of 2,500 MW per annum (§ 49 par. 2 EEG 2017). If the real development surpasses the corridor the degression rate will be increased from 0.5% to up to 2.8% (§ 49 par. 2 EEG 2017). If the development of solar power goes below the targets of the corridor, the degression rate is reduced and in extreme cases, the tariff rate will be even increased by up to 3% (§ 49 par. 3 EEG 2017). The current degression rates can be retrieved from https://www.bundesnetzagentur.de/DE/Sachgebiete/ElektrizitaetundGas/Unternehmen_Institutionen/ErneuerbareEnergien/ZahlenDatenInformationen/EEG_Registerdaten/EEG_Registerdaten_node.html#doc732052bodyText5 (only in German)

Cap

The annual eligible capacity for the tenant electricity surcharge is 500 MW. The Federal Regulatory Authority announces the date the cap is reached. All projects entering into the register after the last day of the consecutive month of the announced date are not eligible for support (§ 23b par. 3 EEG 2017).

Eligibility period

The payment period is 20 years (§ 25 EEG).

Distribution of costs

Consumers

The costs of the support are financed by the EEG apportionment, which is paid by the consumers.

Germany

Further information

Basic information on legal sources