Germany to Cut Rooftop Solar Support as Technology’s Costs Fall

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(Bloomberg) — Germany’s economy ministry is planning to scale back support for rooftop solar and shift its focus toward larger solar parks, arguing that the former is already economically viable on its own.

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From 2027 onwards, fixed feed-in tariffs for new rooftop solar with a capacity of less than 25 kilowatts will be abolished, according to a draft proposal seen by Bloomberg. Currently, small-scale rooftop solar benefits from guaranteed tariffs.

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“These systems – especially small solar systems – are now often economically viable without additional subsidies due to reduced costs, provided they can achieve high self-consumption rates,” the draft states. “To strengthen the cost efficiency of solar expansion, a stronger focus will in future be placed on cost-effective solar parks.”

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Germany’s rooftop solar build-out has accelerated in recent years, with states such as Bavaria recording particularly strong growth. While the technology has been attractive for homeowners, uncontrolled feed-in has repeatedly created challenges for the power system. The new legislation is also meant to encourage investors to install batteries together with solar panels in order for the generated power to be used more efficiently, the draft states.

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A spokesperson for the German economy ministry said the draft is still being worked on and declined to comment on specific details. They said the ministry is generally working to make renewable energy subsidies more cost efficient.

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The German Solar Association warned that the installation of new solar power systems on private buildings could come to a standstill under the new rules. At the same time, a survey conducted by YouGov on behalf of the industry group showed respondents were nearly evenly divided on whether they would proceed with rooftop solar projects in the absence of subsidies, while 17% were unsure.

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According to the draft, the economy ministry is sticking to its goal of reaching 115 gigawatts of onshore wind capacity and 215 gigawatts of solar capacity by 2030. The news was previously reported by local German media outlets.

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