Uproar over subsidies for solar systems

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The announcements with which Federal Minister for Economic Affairs and Energy Katherina Reiche (CDU) is driving the debate forward are still vague. However, after she not only called for fewer subsidies and more grid-compatibility from solar system operators in an interview with the Augsburger Allgemeine newspaper at the weekend, the minister's comments have now been met with sharp criticism from various players in the energy transition.

"Could stall the energy transition"

Does Reiche want to abolish subsidies for solar systems altogether or just reform them slightly? A spokeswoman for the Federal Ministry of Economics said at midday in Berlin that there were no plans to completely abolish subsidies for renewables. It is about the costs of the overall system.

One thing is clear: in the middle of the summer slump, the minister has placed a concern that also affects many private homeowners. Considering rising energy costs and falling prices for photovoltaic systems, it is currently very tempting to climb onto the roof yourself or hire a fitter. However, the German Solar Industry Association (BSW) warns that if the political framework conditions change, this could stifle the market and the energy transition.

Reiche also calls for operators of small solar systems to be obliged to store and control power: "In the case of small PV systems, the large number of uncontrollable, small solar systems feed power into the grid in an uncontrolled manner and put the grid under stress," Reiche told the Augsburger Allgemeine newspaper. "PV systems should therefore be connected to electricity storage systems and be controllable, participate in the market and market their electricity."

The BSW counters this with the fact that new solar systems are increasingly being used in "combination with battery storage systems, electric cars, air conditioning systems or heat pumps". According to the interest group, this ensures efficient use of the grid infrastructure.

Rooftop systems as a problem area

The minister and former energy industry manager did not reveal where exactly she sees the problem. Small solar systems on the scale of balcony power plants are hardly relevant for grid stability and controllability: the 1.17 million solar systems under 2kW peak output registered in the market master data register together generate a maximum of a good gigawatt of gross output. The 3.1 million systems with a peak output of between 3 and 15 kilowatts are much more relevant –, the majority of which are rooftop systems that can actually produce over 28 gigawatts of cheap electricity at the rare peak.

However, only a small proportion of these have fallen out of the subsidy scheme due to their age – and 19 gigawatts were only connected to the grid after 2015. So, in most cases, they will receive feed-in tariffs for at least another ten years. Although these are gradually diminishing, the current regulations still contain guaranteed feed-in tariffs for the next 20 years from commissioning.

This means that anyone who commissions their solar installation in August 2025 can feed electricity into the grid until 2045, regardless of the impact on the grid, and will always receive the same subsidy –. In some cases, even higher surcharges are paid for not feeding electricity into the grid. Reiche apparently does not want to shake the grandfathering of the feed-in tariff itself.

"Debate at the wrong time"

There is industry-wide and cross-technology consensus that this behavior is not sensible and that costs are skyrocketing for everyone involved. However, the conclusions drawn from the problem analysis are very different. For example, Philipp Schröder, CEO of the capital market-driven PV and storage system installer 1Komma5Grad, believes that a debate about abolishing the feed-in tariff is premature. Schröder calls for "system modernization for more digitalization and better processes first: the nationwide smart meter rollout".

Simone Peter (Greens), Chairwoman of the German Renewable Energy Federation, also spoke of a "wrong debate at the wrong time". It is more important to increase flexibility. Private photovoltaic systems in particular had greatly increased acceptance.

It is unlikely that renewable energy subsidies as a whole will be overturned. However, the fact that controllability, storability and grid serviceability must play a greater role is undisputed, even among the economic beneficiaries of the energy transition. Reiche indicated what could change quickly in her interview with the Augsburger Allgemeine: Operators could have erected plants "wherever they wanted without having to consider the electricity grid". In fact, this could be the main difference in the future renewables policy. Instead of expanding the grids to connect renewables, the focus would be on expanding renewables with existing grid capacity.

Nuclear power has no chance in the foreseeable future

Meanwhile, CDU politician Reiche, who has now been in office for almost exactly 100 days, has rejected another long-running issue: No company would want to bear the risk of reactivating shut-down nuclear power plants. Nevertheless, it is important to be able to have a say in research and standard setting for fusion power plants and so-called Small Modular Reactors (SMRs). At the same time, it is important not to place any obstacles in the way of other EU states.

(vbr)