Promotion in Germany

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Updated: 11.01.2019

Author: Tim Sternkopf

Summary of support schemes

  • The KfW Renewable Energy Programme–Standard provides low-interest loans with a fixed interest period of 10 years including a repayment-free start-up period for investments in installations for electricity production.
  • The KfW Programme offshore wind energy provides loans and financing packages to support companies wanting to invest in offshore wind farms in the German Exclusive Economic Zone or in 12 nautical-mile zone of the North and Baltic Sea.
  • The KfW Consortium Loan Energy and Environment Programme provides a consortium loan between up to EUR 4 billion for on-shore wind farms and photo-voltaic installations. 
  • The KfW Renewable Energy Programme Premium provides amongst others low interest loans and grant repayment support (Tilgungszuschuss) for electricity generation in deep geothermal installations. 
  • The KfW Renewable Energy Programme “Storage” supports the usage of stationary battery storage systems, related to a PV installation, which is connected to the electricity grid.
  • The KfW Renewable Environmental Programme provides amongst others low interest loans for commercial purchases of electric, plug-in and hydrogen vehicles.
  • The BMU Innovation Programme provides low interest loans and subsidies for innovative pilot projects for RES.
  • The Environment Bonus is a buyer’s premium for the purchase of electric, plug-in and hydrogen vehicles.
  • Market premium. Plant operators of RES plants exceeding an installed capacity of 100 kW which are not obliged to take part in the tendering procedures are supported by a market premium for electricity they sell directly. The amount of the market premium shall be calculated each month.
  • Tenant electricity surcharge. PV-plants up to 100 kW on residential buildings are supported through the Tenant electricity surcharge, if the electricity is supplied and consumed within the building itself without using the grid. Electricity exported to the grid is supported by the Feed-in tariff.
  • Market premium. Plant operators of RES plants exceeding an installed capacity of 100 kW which are not obliged to take part in the tendering procedures are supported by a market premium for electricity they sell directly. The amount of the market premium shall be calculated each month. 
  • Feed-in tariff. For power plants up 100 kW the support system is based on a feed-in tariff, which the grid operator pays to the plant operators. The amount of tariff is set by law and is usually paid over a period of 20 years. The plant operators can also opt for the market premium. Plants with a capacity higher than 100 kW can be supported through the feed-in tariff in exceptional cases. 
  • Tendering. Onshore and offshore wind projects starting from 750 kW, solar projects starting from 750 kW, biomass plants starting from 150 kW and already existing biomass plants must be awarded in a tendering procedure. The tendering procedure will also set the level of this support.
  • Flexibility surcharge. The operators of new biogas plants may claim additional support for providing capacity for on-demand use.
  • Flexibility premium. The operators of biogas plants that have been commissioned before 1.8.2014 may claim additional support for providing additionally installed capacity for on-demand use.

Technologies

In general, the EEG promotes all technologies used to generate electricity from renewable energy. However, capacity, location or materials used may give reason for excluding certain types of plants from the support system. 

Statutory provisions

  • EEG 2017 (Erneuerbare-Energien-Gesetz - Renewable Energy Sources Act)
  • BiomasseV (Biomasseverordnung - Biomass Ordinance)
  • SDLWindV (Systemdienstleistungsverordnung – Ordinance on System Services by Wind Energy Plants)
  • KfW Rules for investment loans (Allgemeine Bestimmungen für Investitionskredite–Vertragsverhältnis Hausbank–Endkreditnehmer– General rules for investment loans – contractual relationship between the bank and borrower)
  • KfW Renewable Energy Programme Standard (Merkblatt KfW-Programm Erneuerbare Energien - KfW Renewable Energy Programme Standard)
  • KfW Programme Offshore wind energy (Merkblatt Offshore Windenergie - KfW Programme Offshore wind energy)
  • KfW Renewable Energy Programme Premium (Merkblatt KfW-Programm Erneuerbare Energien Premium – KfW Renewable Energy Programme Premium)
  • The BMU Innovation Programme (BMU Umweltinnovationsprogramm)
  • The KfW Programme Renewable Energies Storage (Merkblatt KfW Programm Erneuerbare Energien Speicher)
  • MaStRV (Marktstammdatenregister-Verordnung - Ordinance on a register for plants in the electricity and gas sector)
  • EEV (Erneuerbare-Energien-Verordnung – Renewable Energy Ordinance)
  • WindSeeG (Windenergie-auf-See-Gesetz – Offshore Wind Act)
  • GEEV (Grenzüberschreitende Erneuerbare Energien Verordnung – Ordinance on Trans-border Renewable Energies)

Germany

Further information

  • Bundesministerium für Umwelt, Naturschutzund nukleare Sicherheit (BMU) - Federal Ministry for the Environment, Nature Conservationand Nuclear Safety
  • +49 301 830 50
  • BMUB website
  • zentrale(at)bmu.de-mail.de