,regionOfInterest=(1024,683)&hash=35ab0848facf2b114eaa3c2d2f6721f47bb69b45a1a9452a83b6075ab374d3c5 "Germany Reaches Preliminary Agreement to Maintain Solar Feed-in Tariffs")
The German government has reached a preliminary agreement to maintain feed-in tariffs for small solar installations, averting a planned total phase-out.
SPD and Union negotiators settled the dispute over the Renewable Energy Sources Act (EEG) late last week, according to a report by Focus.de.
The agreement preserves payments for solar systems with a capacity of up to 25 kilowatts, covering the vast majority of private residential rooftops. Under the terms, systems ranging from 26 to 50 kilowatts will have their power marketed by grid operators at the annual market value, while larger installations exceeding 51 kilowatts will receive no fixed remuneration, Focus.de reported.
This deal marks a retreat from the original draft proposed by Minister of Economic Affairs Katherina Reiche in July. That proposal sought to eliminate all feed-in tariffs by 2027, forcing households to market their electricity directly through power exchanges.
“The energy experts of the SPD and the Union parliamentary groups have reached a technical agreement on the EEG amendment as part of the coalition negotiations,” said SPD parliamentary group deputy Armand Zorn, as reported by Focus.de. Zorn and Union deputy Sepp Müller aim to conclude all energy policy negotiations in time for the Federal Council session on December 18, 2026.
The reform is critical because the European Union’s authorization for Germany’s current EEG framework expires at the end of December. If the new legislation is not passed by January 1, 2027, the federal government would lose the legal basis to approve subsidies or tenders for new energy projects.
Industry associations have warned that a failure to meet this deadline would bring the German energy transition to a standstill.
Even with a mid-December agreement, the legislative timeline remains tight. The new EEG must still undergo a formal approval process by the European Commission in Brussels.
Disagreements persist regarding the scope of the reform. The Ministry of Economic Affairs and the Union are insisting that the EEG update be passed only in conjunction with a separate, contentious package of grid regulations. The SPD opposes linking the two, arguing that the urgency of the EEG deadline demands a standalone vote.
The primary point of contention is the “redispatch” reservation, which would reduce compensation for operators in capacity-limited areas where grid congestion forces power curtailment. The SPD rejects this measure, fearing it will slow the expansion of renewable energy.
Negotiators have also reached terms on wind energy, including a “South quota” designed to incentivize more wind power projects in southern Germany. This shift is intended to alleviate the burden on transmission lines that carry electricity from northern wind farms to Baden-Württemberg and Bavaria. The government also plans to soften a proposed rent cap for wind turbines, limiting its application to cases where auctions receive insufficient bids.
Despite these breakthroughs, the precise timing for finalizing the legislative text remains uncertain. “The time is pressing,” said Green Party energy politician Michael Kellner, noting that thousands of jobs and millions in investments depend on the outcome.
It is not yet clear when the final draft will be presented for a vote, or if the government will resolve the remaining disputes with the grid package before the end of the year.
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