Economy minister plans end to feed-in tariffs for rooftop solar

Federal Economy Minister Katherina Reiche faces growing criticism over plans to abolish the legal feed-in tariff for solar systems on house roofs. Yet not all industry representatives reject the move.

In Berlin, Federal Economy Minister Katherina Reiche (CDU) has faced clear opposition from parts of the renewable energy sector in recent months. Her plan calls for ending the guaranteed feed-in tariff for photovoltaic systems on house roofs.

However, Philipp Schröder, head of energy provider 1Komma5Grad, explicitly supports the initiative. He even calls for abolishing the tariff for systems of all sizes. “It is right to stop paying feed-in tariffs in the future, not for small and not for large photovoltaic systems,” he told Handelsblatt.

Schröder stressed that new systems combined with smart meters could compete on the open market. Smart meters enable market-based billing and control of electricity generated from rooftop installations.

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German politicians in heated debate over electricity tax cut proposal amid coalition tensions.
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Finance ministry criticises Reiche's electricity tax cut proposal

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Germany's finance ministry opposes Economy Minister Katherina Reiche's proposal to cut the electricity tax for businesses and households. The dispute in the black-red coalition over relief from high energy prices is escalating after Reiche and Finance Minister Lars Klingbeil clashed on Friday. Chancellor Friedrich Merz has expressed annoyance at Reiche's push.

On May 1, 2026, electricity prices on the German exchange dropped to minus 499 euros per megawatt hour. High photovoltaic production met low demand on a holiday. Economy Minister Katherina Reiche plans reforms to address this.

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Federal Economics Minister Katherina Reiche (CDU) has rejected demands for an excess profits tax to address high fuel prices. She called measures like fuel vouchers misleading and proposed raising the commuter allowance instead. The price surges stem from the Iran war.

Former state secretary Patrick Graichen discusses the dispute over the Building Energy Act and climate protection debate in an interview. He defends the previous government's policy and criticizes the CDU and FDP. Graichen remains optimistic about the energy transition's future.

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In the continuing German fuel price crisis driven by Middle East tensions, economist Veronika Grimm warns against discounts to sustain high prices and curb demand, citing severe supply bottlenecks in the Strait of Hormuz. She critiques broad relief amid limited fiscal space.

Sepp Müller, deputy leader of the Union parliamentary group, deems comprehensive subsidies against high fuel prices unrealistic. Eastern German CDU state premiers demand suspension of the CO₂ tax. Care associations warn of impacts on rural patient care.

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With the Austria-model daily price cap now in place, record diesel prices spark fresh calls for relief. Consumer Protection Minister Stefanie Hubig (SPD) supports Vice-Chancellor Lars Klingbeil's flexible cap idea, while Greens and economists push speed limits.

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