In Berlin, the Federal Government is preparing a far-reaching overhaul of solar energy subsidies, as Federal Minister of Economics Katherina Reiche intends to reduce state payments for new small-scale PV systems. The amendment to the Renewable Energy Sources Act (EEG) and the accompanying Grid Package remain under inter-ministerial coordination; according to the current schedule, the Federal Cabinet is slated to address these proposals on May 27, 2026. Starting in 2027, new solar installations could lose their fixed feed-in tariffs, while grid operators are set to gain greater influence over grid connections and curtailment measures. This would primarily affect homeowners with new systems, whereas existing installations—under the current status quo—are expected to retain their grandfathered protections. (zfk: 21.05.26)
New Rules Alter Calculations for Private Solar Systems
The Ministry points to significantly reduced costs for solar technology. Many small rooftop systems now offer better returns through self-consumption, energy storage, and direct use of generated electricity. Consequently, the Federal Government intends to align solar subsidies for new installations more closely with market prices.
For new systems under 25 kilowatts, the fixed feed-in tariff could be eliminated. Operators would then be required to market their surplus electricity directly more frequently. At the same time, uncertainty is rising, as private households have little experience with such market models.
Solar Subsidies Remain in Place for Now, but the Timeline Is Tightening
Currently, the existing remuneration rates remain in effect. As of February 1, 2026, new systems up to 10 kilowatts receive 7.78 cents per kilowatt-hour for partial grid injection. For full grid injection, however, the rate stands at 12.34 cents per kilowatt-hour.
Under the current regulatory framework, this remuneration declines on a regular basis. Nevertheless, it has so far provided operators with a solid foundation for their investment calculations. However, precisely this certainty could vanish for new small-scale systems starting in 2027.
Grid Operators Set to Gain Greater Control
Alongside the reform of the Renewable Energy Sources Act (EEG), the Federal Government is planning new regulations for the electricity grid. Grid operators are to be granted greater authority to decide which systems receive grid connections in areas prone to bottlenecks. Consequently, the capacity and resilience of distribution grids are moving more firmly into the spotlight.
Changes are also looming regarding curtailment measures. In the future, operators could receive less compensation if grid operators throttle systems due to grid bottlenecks. Furthermore, new cost models could make the grid connection of power generation systems more expensive.
Criticism from Politics and the Solar Industry Mounts
The SPD, the Greens, and the solar industry warn of a decline in the expansion of private solar installations. They view small rooftop systems as a crucial building block of the energy transition. At the same time, industry associations criticize the fact that direct marketing requirements overwhelm many private system operators.
However, the Federal Government remains committed to its goal of meeting approximately 80 percent of gross electricity consumption with renewable energy sources by 2030. This objective necessitates additional solar capacity, even as grid bottlenecks are already straining many regions today. Consequently, the outcome of this reform will determine not only the level of subsidy costs but also the pace of decentralized energy expansion.
Decision Still Pending, but Homeowners Must Plan Further Ahead
A final decision has not yet been reached. As of now, the consultation process involving the federal states and industry associations has also not yet begun. Nevertheless, the Cabinet meeting scheduled for May 27 marks the next significant step in this process.
For homeowners, therefore, the actual date of commissioning now carries greater weight than in the past. Those planning to install a system in 2026 will—under current legislation—continue to qualify for the existing remuneration rates. However, those who invest at a later date must anticipate exposure to market price risks, direct marketing requirements, and stricter grid connection regulations.