Germany’s Renewable Energies Act: What do recent changes mean for plug & play solar kits?

On April 26, 2024, the German Bundestag passed the groundbreaking Solar Package I (in German). This change of law is expected to sustainably strengthen photovoltaics in Germany and is only a few steps away from final adoption. The new law brings particularly exciting innovations for plug & play solar kits. With Germany being Europe’s leading solar market, these changes are likely to have an impact on other European countries in the near future.

What is the Renewable Energies Act about?

The Renewable Energies Act (“Erneuerbare-Energien-Gesetz”, or EEG) is a central instrument of German energy policy for promoting renewable energies. It was first introduced in 2000 and has been amended several times since then. The aim of the EEG is to promote the expansion of renewable energies such as wind energy, solar energy, biomass and hydropower in order to reduce dependence on fossil fuels and combat climate change.

The EEG stipulates that operators of renewable energy systems receive a fixed remuneration for the electricity fed into the grid, which is guaranteed over a certain period of time. This remuneration is financed by the EEG levy, which is paid by consumers through their electricity bills.

The law also sets goals for the expansion of renewable energies and regulates various aspects such as grid access for renewable energy systems, the integration of renewable energies into the electricity grid and the promotion of innovations in the field of renewable energies.

Overall, the EEG is intended to help advance the energy transition in Germany and make a contribution to climate protection.

What has changed now?

The current reform of the EEG, which should have come into force already in 2023, expands the framework for the advancement of renewable energies in Germany, in addition to the promotion of photovoltaics, also to other forms of energy production such as wind power and biomass. It focuses on accelerating the expansion of solar systems and optimizing the entire electricity system to achieve a secure, affordable and climate-neutral power supply. Also, measures such as energy communities will be significantly simplified, and funding for innovative solar systems such as agri-PV, biodiversity PV and parking lot PV will be strengthened.

What are the innovations for plug & play solar kits?

1. Increased power limits for plug & play solar kits: From now on, plug & play solar kits can have a total output of up to 2,000 Wp on panels and an inverter output of up to 800 W, and be easily connected to a home’s power grid. This adaptation makes it easier to use larger systems and enables more efficient energy generation at home. The result are plug & play solar kits that can regularly provide the full 800 W output for longer hours during the day, even on days with less sunshine.
2. Simplified registration: Plug & play solar kits will no longer be registered in the previous register (MaStR), but in a special database of the Federal Network Agency. This simplified process helps to put plug & play solar kits into operation more quickly and easily.
3. Counters turning backwards: A significant innovation is that electricity meters are now allowed to temporarily turn backwards when excess energy from your plug & play solar kit is fed into the grid. This reduces your electricity bill because the meter directly deducts the energy fed into the grid. This addresses a German anomaly, the still very high penetration of analog power meters with turning wheels, that has no equivalent in other western European countries. Over the coming years Germany power meters will be converted to smart meters.
4. Transitional regulations for measurement technology: As mentioned, you can already use your plug & play solar kit before a bi-directional meter or a digital meter is installed. This transitional arrangement allows you to benefit immediately from your investment while the final measurement technology is still being installed.

These legal adjustments mean less red tape and more incentives to invest in plug & play solar kits. Installation becomes easier, usage more effective and the return on investment faster. With the improved framework conditions, now is the perfect moment to invest in a plug & play solar kit. You benefit from lower costs, less effort when setting up and a quick payback through saved electricity costs.

Conclusion