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Germany Softens EEG and Grid Drafts but Industry Warns of Investment Risk

The ministry says the package will curb subsidy costs, align new renewables with grid capacity, require EU approval before it can become law.

Overview

  • The Federal Ministry for Economic Affairs published revised referent drafts for an EEG overhaul and a Netzpaket on Friday, July 17, and opened a Länder- and Verband consultation with only days allowed for responses.
  • The draft ends guaranteed feed‑in tariffs for new small rooftop PV and replaces them with a limited transition payment of about 36 months followed by mandatory direct marketing for systems phased in from 2027, with the initial size cutoff at roughly 25 kilowatts.
  • Redispatch compensation would not be abolished but narrowed: payments would be cut only when local curtailment exceeds about five percent, the draft limits the amount of unpaid curtailed energy and introduces a technical 'Spitzenkappung' that caps injection power of new plants in capacity planning.
  • Industry groups and opposition parties say the measures risk cutting installations, costing jobs and creating financing uncertainty, and they have also criticised the three‑day consultation window as too short for complex rules.
  • The texts still require cabinet approval, Bundestag debate after the summer break and EU state‑aid clearance before the rules can apply to projects from January, so further political and legal changes remain possible.