Renewable energy policy database and support: single

Feed-in tariff (EEG feed-in tariff)

Updated: 11.01.2019

Author: Tim Sternkopf

In Germany, small RES-E plants up to 100 kW are eligible for feed-in tariff as set out in the EEG 2017 (§ 19 par. 1 no. 2. And § 21 EEG 2017). The eligibility is coupled to the obligation of the plant operator to feed the electricity into the grid in the months for which he raises the claim of receiving the financial support.

Regardless of the size, all plants are eligible in exceptional cases for a feed-in tariff reduced by 20% (Ausfallvergütung), however no longer than 3 consecutive months and no more than 6 months within a calendar year (§ 21 par. 1 no 2 EEG 2017).

Eligible technologies

In general, all technologies used to generate electricity from renewable sources are eligible for feed-in tariffs (§ 19 par. 1 EEG 2017). Eligibility also applies to electricity that was temporarily stored prior to being fed into the grid (§ 19 par. 3 EEG 2017).

Feed-in tariffs are granted only for electricity actually taken over by the grid operator (§ 21 par. 1 EEG 2017). The electricity may not be consumed in the direct surrounding of the power plant and needs to be transmitted through the grid (§ 21 par. 2 no 1 EEG 2017). Additionally, the plant is not allowed to participate at the electricity balancing market (§ 21 par. 2 no 2 EEG 2017).

Wind energy	Eligible. Extra technical requirement for onshore wind installation: Plants commissioned before the 1 July 2017 must guarantee to respect the provisions of the Ordinance of System Service by Wind Energy Plants when connecting the plant to the grid (§ 9 par. 6 EEG 2017, SDLWindV).
Solar energy	Eligible. Following additional technical requirements apply for solar installations: Solar plants must feature the technical capacity of being remote-controlled for the case of network overload and of reporting in real-time the actual feed-in power (§9 par. 1 and 2 EEG 2017). More solar installations, regardless of ownership, are considered one plant if they are on the same property or building and have been commissioned during 12 consequent calendar months. This consideration serves solely for the determination of the installed capacity (§9 par. 3 EEG 2017). Building-mounted systems must comply with additional pre-requirements depending on their nature (attached to or on top of building-roofs, facades, noise barriers, other buildings): (§ 48 par. 1, no.1, par 2 and 3 EEG 2017). Ground-mounted systems: The installation has to be erected within the territorial application of a formal development plan (e.g. a local development plan) (§ 48 par. 1 no. 2-3 EEG 2017). Installations erected within the territorial application of a local development plan drawn up after 1.9.2003 must be located on certain plots of land such as areas next to speedways, railroad tracks as well as on sealed and conversion areas (§ 48 par. 1 no. 3 abc EEG 2017).
Geothermal energy	Eligible (§ 19 par. 1 EEG 2017).
Biogas	Biogas is eligible for a feed-in tariff. (§ 19 par. 1 EEG 2017). According to the definition of the technology (§3 no. 11 EEG 2017), biogas is every gas won through the anaerobic digestion of biomass. § 3 no. 21 EEG 2017 specifies that biomass includes biogas, biomethane, landfill gas and gas from purification plants and from the biological degradable part of household and industrial waste. Biogas plant operators (except for plants using exclusively manure or waste) must additionally guarantee for plants commissioned after 31 December 2016 and fermentation residue storage build after 31 December 2011 that the hydraulic retention time at least 150 days is (§ 9 par. 5 EEG 2017). Further pre-requirements are: Definition of biomass. The substances regarded as biomass are specified in a separate ordinance (BiomasseV). Capacity limits. Electricity generated by a plant using biogas from the fermentation of manure is eligible only if the installed capacity does not exceed 75 kW (§ 44 no. 2 EEG 2017). Additionally, the proportion of manure excluding liquid and solid poultry manure must be of at least 80% (§ 44 no. 3 EEG 2017). Obligation to employ CHP technology. Electricity from plants using biomethane is eligible only if the electricity is generated through CHP (§ 44b par. 2 EEG 2017). The operator of the plant has to prove that the plant met this requirement (§ 44b par. 3 EEG 2017). Obligation to keep a record of substances. Electricity will be eligible for the full tariff as specified in the EEG only if the plant operator can prove which type of biomass is used by presenting a copy of a record of the substances used and provides evidence that no other substances are used (§ 44c par. 1 EEG 2017). Technical requirements. The plant operator shall make sure that devices are used to avoid any escape of biogas (§ 9 par. 5 EEG 2017). Electricity generation sites. Where electricity is generated from biogas that was generated from anaerobic fermentation of manure, the electricity shall be produced at the site of the biogas generation plant (§ 44 no. 1 EEG 2017).
Hydro-power	Eligible (§ 19 par. 1 EEG 2017).
Biomass	Eligible (§ 19 par 1 EEG 2017). § 3 no. 21 EEG 2017 specifies that biomass includes biogas, biomethane, landfill gas and gas from purification plants and from the biological degradable part of household and industrial waste. A further specification of the substances regarded as biomass are to be found in a separate ordinance (BiomasseV). Additionally, there is an Obligation to keep a record of substances. Electricity will be eligible for the full tariff as specified in the EEG only if the plant operator can prove which type of biomass is used by presenting a copy of a record of the substances used and provides evidence that no other substances are used (§ 44c par. 1 EEG 2017).

Amount

The level of the feed-in tariff is defined by law and varies according to specificities of the technologies (§§ 40 – 49 EEG 2017).

Additionally, the EEG 2017 describes several conditions, which would lead to the reduction of the tariff levels.

If the plant operator receives a regional certificate the feed-in tariff shall be reduced by EUR ct. 0.1 pro KWh (§ 53b EEG 2017)
The feed-in tariff for tac except electricity shall be reduced by the amount of the tax exemption (§ 53c EEG 2017)
The tariff level will be reduced to zero in case that
- a plant operator has not registered his plant as required by law (§ 52 par. 1 no. 1 EEG 2017 in conjunction with § 71 no. 1, EEG 2017; MaStRV). A plant operator has to register his plant at the Federal Network Agency (§ 6 par. 1 EEG 2017). This information to be submitted is defined by law and includes, for example, the name and contact details of the plant operator, the location of the power plant, the type of power plant, and its installed capacity (§ 6 par. 2 EEG 20172014);
The tariff level will be reduced to the actual market value in the case that
- technical requirements are not met (§ 52 par. 2 no. 1 EEG 2017 in conjunction with § 9 par. 1, 2, 5 or 6 EEG 2017).
- the plant operator has switched between direct marketing of the electricity and the feed-in tariff without informing the grid operator (§ 52 par. 2 no. 2 EEG 2017);
- a plant operator breaches the prohibition of multiple sale electricity from renewable energy sources and mine gas (§ 52 par. 2 no. 5 EEG 2017 in conjunction with § 80 EEG 2017).

If the electricity of the RES-E plant (of a capacity also higher than 100 kWp) is sold under the feed-in tariff as an exceptional case, the tariff has to be reduced by 20% (§ 53 EEG 2017).

Wind energy	Onshore: €ct 4.66 – 8.38 per kWh (according to duration of payment) (§ 46 EEG 2017) minus €ct 0.4 per kWh (§ 53 no. 2 EEG 2017); Offshore until 2020: €ct 3.9 – 1.4 per kWh (according to duration of payment and scheme chosen by plant operator) (§ 47EEG 2017) minus €ct 0.4 per kWh (§ 53 no. 2 EEG 2017).
Solar energy	The amount of tariff depends on the site of production and the installed capacity. specific building-mounted systems (e.g. roofs, facades, noise barriers, other building) €ct 8.91 – 12.70 per kWh (§ 48 par. 1 and 2 EEG 2017) minus €ct 0.4 per kWh (§ 53 no. 2 EEG 2017);
Geothermal energy	€ct 25.2 per kWh (§ 45 EEG 2014) minus €ct 0.2 per kWh (§ 53 no. 1 EEG 2017)
Biogas	Biogas from bio-waste: €ct 13.05 – 14.88 per kWh (according to plant size) (§ 43 EEG 2017) minus €ct 0.2 per kWh (§ 53 no. 1 EEG 2017). Biogas from manure: €ct 23.14 kWh minus €ct 0.2 per kWh (§ 53 no. 1 EEG 2017) for plants smaller than 75 kW (§ 44 EEG 2017). Landfill gas: €ct 5.66 – 8.17 per kWh (§ 41 par 1 EEG 2017) minus €ct 0.2 per kWh (§ 53 no. 1 EEG 2017). Sewage gas: €ct 5.66 – 6.49 per kWh (§ 41 par 2 EEG 2017) minus €ct 0.2 per kWh (§ 53 no. 1 EEG 2017).
Hydro-power	€ct 3.47 – 12.40 per kWh (depending on plant size and date of commissioning) (§ 40 par. 1-4 EEG 2015) minus €ct 0.2 per kWh (§ 53 no. 1 EEG 2017).
Biomass	€ct 5.71 – 13.32 per kWh (according to plant size) (§ 42 EEG 2017) minus €ct 0.2 per kWh (§ 53 no. 1 EEG 2017).

Addressees

Procedure

Process flow	Statutory law does not set out a formal application process. According to the EEG, the conclusion of a contract between the grid operator and the plant operator must not be made a condition for the payment of tariffs (§ 7 par. 1 EEG 2017).
Competent authority	The implementation of the EEG is monitored by the Federal Network Agency (§ 85 EEG 2017). The Act is evaluated by the Federal Government (§ 97 EEG 2017).

Degression

For most technologies, the tariff levels will decrease in regular periods of time. New plants will receive the tariff level applicable on the day they are put into operation. This tariff level will apply for the entire payment period, i.e. for 20 years (§ 25 EEG). For some technologies, the percentages by which the tariff levels will decrease are set by law and are not subject to change. For other technologies the percentage by which the tariff levels will decrease depend on the amount of newly installed capacity.

Wind energy	Onshore: The feed-in tariff were reduced on the 1 of the months from March to August 2017 by 1.05%; afterwards the degression contains a basis degression rate of 0.4% every 3 months (1.October 2017, 1 January 2018, 1. April 2018, 1. July 2018 and 1. October 2018) (§ 46a par. 1 EEG 2017). The EEG 2017 has defined a target-corridor for the development of on-shore wind power of 2,500 MWMW per annum. If the real development surpasses the corridor the degression rate will be increased from 0.5% to up to 2.4% (§ 46a par. 2 EEG 2017). If the development of wind 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 0.4% (§ 46a par. 3, 4 EEG 2017). Offshore: Until 1.1.2018 there is no degression for offshore wind power plants. In the following years, the degression will be between 0.5 and 1.0 ct/kWh, depending on the year and the tariff (§ 47 par. 5-6 EEG 2017).
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).
Geothermal energy	The degression rate will be 5% every year from 2021 (§ 45 par. 2 EEG 2017).
Biogas	The degression rate for landfill gas sewage gas and mine gas is starting from 1.1.2018 by 1.5% annually (§ 41 par. 4 4 EEG 2017). The degression of biogas from other forms of biomass has a basis degression rate of 0.5% every 6 months (1 April and 1 October) starting from April 2017 (§ 44a EEG 2017).
Hydro-power	The degression rate is 0.5% every year (§ 27 par. 1 no. 1 EEG 2017).
Biomass	The degression for biomass has a basis degression rate of 0.5% every 6 months (1 April and 1 October) starting from April 2017 (§ 44a EEG 2017).

Eligibility period

Distribution of costs

Consumers	The costs of the feed-in tariff scheme are borne by the final consumers.
Distribution mechanism	Plant operator – grid operator. The grid operator is obliged to purchase all electricity generated by a plant operator and pay the tariff set out by law (§ 11 par. 1, § 19 par. 1 no. 2 EEG 2017). Grid operator – transmission system operator. The grid operator is obliged to transfer the electricity received to the transmission system operator without undue delay (§ 56 EEG 2017). The grid operator is entitled to the purchase of and payment for the quantity of electricity he has paid tariff for (§ 57 par. 1 EEG 2017). Transmission system operator – transmission system operator. The transmission system operators divide the costs resulting from the EEG equally among themselves (§ 58 par. 1-3 EEG 2017). A transmission system operator is eligible for compensation from other transmission system operators in case he incurred higher costs due to feed-in tariff and premium payments than the average compensation costs of all transmission system operators (§ 58 par. 3 EEG 2017). Transmission system operator – spot market. The transmission system operators sell electricity from renewable sources on the day-ahead or intraday spot market at the stock exchange price (§ 59 EEG 2017 in conjunction with § 2 EEV). Transmission system operator – utility companies. The utility companies are obliged to reimburse the transmission system operators for their costs (§ 60 par. 1 EEG 2017 in conjunction with § 3 EEV). Utility companies – final consumers. The costs incurred are included in the electricity price and thus, passed on to the final consumers via their electricity bills (§ 60 par. 1 EEG 2017). Special regulations apply for electricity intensive companies and rail operators (§§ 63-65 EEG 2017).

Consumers

The costs of the feed-in tariff scheme are borne by the final consumers.

Distribution mechanism

Plant operator – grid operator. The grid operator is obliged to purchase all electricity generated by a plant operator and pay the tariff set out by law (§ 11 par. 1, § 19 par. 1 no. 2 EEG 2017).
Grid operator – transmission system operator. The grid operator is obliged to transfer the electricity received to the transmission system operator without undue delay (§ 56 EEG 2017). The grid operator is entitled to the purchase of and payment for the quantity of electricity he has paid tariff for (§ 57 par. 1 EEG 2017).
Transmission system operator – transmission system operator. The transmission system operators divide the costs resulting from the EEG equally among themselves (§ 58 par. 1-3 EEG 2017). A transmission system operator is eligible for compensation from other transmission system operators in case he incurred higher costs due to feed-in tariff and premium payments than the average compensation costs of all transmission system operators (§ 58 par. 3 EEG 2017).
Transmission system operator – spot market. The transmission system operators sell electricity from renewable sources on the day-ahead or intraday spot market at the stock exchange price (§ 59 EEG 2017 in conjunction with § 2 EEV).
Transmission system operator – utility companies. The utility companies are obliged to reimburse the transmission system operators for their costs (§ 60 par. 1 EEG 2017 in conjunction with § 3 EEV).
Utility companies – final consumers. The costs incurred are included in the electricity price and thus, passed on to the final consumers via their electricity bills (§ 60 par. 1 EEG 2017). Special regulations apply for electricity intensive companies and rail operators (§§ 63-65 EEG 2017).

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