Germany: Overall Summary

Updated: 12.10.2017

Author: Tim Sternkopf

In Germany, electricity from renewable sources is mainly supported through a market premium scheme. For most installations, the award and the level of the market premium is determined through a tendering scheme. However, small power plants up to 100 kW are still supported by a feed-in tariff. The criteria for eligibility and the tariff levels are set out in the Renewable Energy Sources Act (EEG 2017). In 2017 the tenant electricity surcharge has been added to the EEG, which supports electricity produced and consumed in the same residential building. Moreover, low interest loans for investments in new plants are provided for by different KfW-Programmes and there is an additional subsidy to promote the installation of flexible biogas capacities.

In Germany, the Guidelines for the support of RES-H set out the Market Incentive Programme (MAP), stipulating support schemes for the promotion of heat produced from renewable energy. BAFA is providing investment support and KfW offers low-interest loans.

There is no support scheme addressing particularly the use of renewable energy sources for the transport sector. A greenhouse gas reduction quota is in place, which can be fulfilled through the use of biofuels. A KfW loan provides – among other -support for the commercial purchase of hybrid and e-cars. It is complemented by an Enviromental Bonus shared between the federal state and the car producer for the purchase of electric, plug-in and hydrogen passenger cars.

Plants for the generation of electricity from renewable sources shall be given priority connection to the grid. Furthermore, grid operators are obliged to give priority to electricity from renewable sources when purchasing and transmitting electricity. Moreover, those interested in feeding in electricity may demand that the grid operator expands his grid.

Germany provides policies for the promotion of renewable energy sources covering training, certification and research programmes, a self-commitment of public authorities, the support of district heating networks and the introduction of building obligations regarding the use of heat produced from renewable energy.

More about support schemes More about grid issues More about policies
Germany

Further information

  • Bundesministerium für Umwelt, Naturschutz, Bau und Reaktorsicherheit (BMUB) - Federal Ministry for the Environment, Nature Conservation, Construction and Nuclear Safety
  • +49 301 830 50
  • BMUB website
  • service(at)bmub.bund.de