Economy minister plans end to feed-in tariffs from 2027

Federal Economy Minister Katherina Reiche wants to abolish feed-in tariffs for new photovoltaic systems up to 25 kilowatts from 2027. The draft amendment to the Renewable Energy Sources Act provides for this change.

Reiche argues that rooftop photovoltaic systems will still pay off without the previous statutory compensation if households increase their own consumption and market surplus electricity themselves.

Anyone installing a system from 2027 onward must therefore make different calculations. Possible options include investing in home storage or selling electricity on the exchange.

The proposal is part of the draft law amendment. It remains to be seen whether the savings and new revenues will offset the lost compensation.

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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.

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.

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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.

The federal cabinet has approved the draft of the building modernization law. The new legislation replaces the controversial heating law of the previous traffic-light coalition and aims to offer more flexibility in heating choices.

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The federal cabinet approved the power plant law in mid-May. Two recent studies however point to problems with using gas power plants as backup.

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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Germany's SPD is pushing for a national excess profits tax on mineral oil companies to fund a fuel discount, even without EU agreement. The move has reignited tensions with coalition partner CDU. Finance Minister Lars Klingbeil plans to address energy taxes on Friday.

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