Anyone planning a rooftop photovoltaic system ('PVA') needs to pay close attention: the Federal Ministry for Economic Affairs and Energy ('BMWE') has presented a draft for a fundamentally revised Renewable Energy Sources Act (Entwurf eines Gesetzes für einen planbaren, kosteneffizienten, netzverträglichen und marktorientierten Ausbau der erneuerbaren Energien im Stromsektor (EEG-Novelle) | BMWE).
The draft of the EEG 2027 (‘EEG 2027-E’) adopted by the Cabinet today introduces several profound changes – and specifically affects even small PVAs. Below, we break down what would change under this draft bill for PVAs below the tender threshold.
The EEG 2027-E is primarily based on a working draft by the BMWE which was leaked as early as February 2026. The current draft had been subject to consultation with industry associations since 17 July 2026 and was adopted by the Federal Cabinet on 29 July 2026. Next, the bill must be debated in the German Bundestag and Bundesrat. Subsequently, the subsidy system under the EEG 2027-E must be approved by the European Commission. Amendments are possible at every stage of this legislative journey.
Previously, the rules were straightforward: anyone feeding electricity into the grid with systems up to 100 kWp received a legally defined feed-in tariff. This is set to change fundamentally with the EEG 2027. The draft bill gradually phases out the fixed feed-in tariff, making direct marketing (Direktvermarktung) the new rule. The government justifies this by arguing that small PVAs are generally economically viable anyway.
The bottom line: In the future, system operators will have to market their electricity directly. This will typically require entering into a contract with a third-party direct marketing company. To ease the transition, temporary transitional payments are planned, although these depend on the commissioning date and the system size and are also limited to a maximum of 36 months (the so-called 'grid operator acceptance').
Anyone planning a new PVA should arrange a direct marketing contract at an early stage and clarify whether they may be eligible for transitional payments for electricity fed into the grid. The former currently poses a significant challenge, as a functioning market for the direct marketing of small PVAs virtually does not yet exist.
The level of German EEG funding is also changing. The so-called 'reference value' – the basis for essential calculations within the German Renewable Energy Sources Act – will be uniformly set at 6.2 cents per kilowatt hour. Previously, remuneration was structured in graduated capacity-based tiers depending on factors such as installation size or design (e.g. PV rooftop installations); in the future a uniform rate will apply to all.
Furthermore, the so-called 'full feed-in bonus' (Volleinspeisebonus) will cease to apply. Previously, anyone who fed all of their solar electricity into the grid instead of using it themselves received a premium of up to 5.1 cents per kWh. This funding will cease to apply without replacement for new systems.
Another significant change involves what is known as ‘active power capping’ (Wirkleistungskappung), which refers to the technical limit on the amount of electrical power that can actually be utilised by the PVA. Even today, PV rooftop installations are not permitted to feed electricity into the grid without limitation – the limit to date has been 60 per cent of the installed capacity. However, this limit previously ceased to apply as soon as a smart metering system (intelligentes Messsystem) was installed; meaning that if the system generates peak values, this electricity can still be channelled into the heat pump etc. but cannot be fed into the grid.
Under the EEG 2027-E, the limit will be permanently reduced to 50 per cent – regardless of the metering technology used. Thus, anyone operating a 30 kWp PVA will only be permitted to feed 15 kW into the grid in future.
Under the EEG 2027-E, operators of systems of 100 kilowatts and above must prepare themselves for a fundamental change in the system. Until now, government funding was a one-way street (the so-called one-sided 'Contract for Difference'): if the monthly market value of electricity fell below the guaranteed support level, the grid operator paid the difference in the form of a market premium (Marktprämie). If prices were higher, system operators retained the full profit.
The draft EEG 2027 now turns this into a two-way street: the market premium will still be paid if the actual figure falls short of the reference value. However, when market prices are high, operators must pay a so-called refinancing contribution (Refinanzierungsbeitrag) to the grid operator (the so-called two-sided 'Contract for Difference').
Provision is made, though, for plant operators to waive subsidised direct marketing once and irrevocably – in which case the repayment obligation will also cease to apply.
Even today, systems of 7 kilowatts or more must be equipped with a smart metering system. In the draft EEG 2027, this threshold is reduced to 2 kilowatts.
Anyone who already operates a PVA enjoys grandfathering protection – existing law continues to apply. Funding that has already been committed will remain unaffected.
There are, however, exceptions that must not be overlooked, such as with regard to smart metering systems and repowering measures.
The EEG 2027-E is clearly geared towards creating an incentive scheme for the decentralised – that is, building-based – use of PV electricity, such as self-consumption, tenant electricity, communal building supply, etc.
To make this incentive scheme work, though, a market for the direct sale of electricity from small PV systems must be established. It is also essential that the roll-out of smart meters gains momentum. Yet it remains to be seen whether the legislature will take supporting measures to defer these aspects. The coalition’s agreement on implementing a ‘smart-meter-light’ approach at least offers some hope for the latter.
