EEG 2027: what will change for solar and wind projects?

The end of the traditional feed-in-tariff for new rooftop PV systems

The most significant change concerns new rooftop photovoltaic installations. Under the current EEG framework, small PV systems can feed electricity into the grid in exchange for a fixed feed-in tariff, while the direct marketing only becomes mandatory above a certain system size. From 2027 onwards, this traditional feed-in tariff would no longer be available for newly installed rooftop PV systems. Instead, all new installations would gradually transition into direct marketing.

Transitional phase: temporary market value payment

To avoid immediately exposing smaller system owners to the administrative and commercial requirements of direct marketing, the draft introduces a three-year transitional scheme. During this period, new installations would no longer receive a fixed feed-in tariff. Instead, they would receive a transitional payment based on the technology-specific annual market value in addition to the revenues earned from selling electricity on the wholesale market. Since this payment is linked to the market value, it is expected to be lower than today's feed-in tariff in many cases (likely around 1 ct/kWh below the current feed-in tariff).

The direct marketing obligation would be introduced gradually depending on system size:

• from 2027: mandatory direct marketing for new PV systems of 50 kW and above

• from 2028: extended to all new systems below 50 kW

• from 2029: further extended to systems below 25 kW

• from 2030: mandatory direct marketing for virtually all new PV systems larger than 2 kW, including very small residential installations below 7 kW.

As a result, the current distinction between small and large PV systems would largely disappear.

To encourage participation in direct marketing, installations below 25 kW would receive a direct marketing bonus of 1.5 ct/kWh for up to four years after entering the direct marketing scheme.

New export limitation for rooftop PV

The draft also proposes changes to the maximum grid export capacity of small rooftop PV systems. New installations would generally only be allowed to feed up to 50% of their installed capacity into the public grid. However, Section 9c of the draft does not yet specify whether this requirement would apply to systems up to 25 kW or 100 kW. Unlike the current rules, this export limitation would apply regardless of whether a smart meter has already been installed.

Significantly higher auction volumes for onshore wind and ground-mounted solar

Another key element of the EEG 2027 proposal is the accelerated deployment of renewable energy through substantially larger auction volumes. Although Germany's long-term capacity targets remain unchanged, the annual auction volumes for onshore wind and ground-mounted solar would increase considerably. According to the draft, the objective is to improve the likelihood of achieving the existing deployment targets by providing greater certainty through the support scheme.

Photovoltaics

Auction volumes for ground-mounted PV (Segment 1) would increase substantially:

• Current volume: 9.9 GW per year

• Proposed volume: 14 GW per year (2027–2032)

An additional 1.5 GW per year would continue to be auctioned for Segment 2 projects.

The draft also introduces a new Agri-PV bonus of 0.5 ct/kWh on the awarded strike price, provided that specific eligibility criteria are met.

Onshore wind

Auction volumes for onshore wind would also increase significantly, adding approximately 12 GW of additional auctioned capacity in order to support Germany's target of reaching 115 GW of installed onshore wind capacity by 2030.

The proposed auction schedule is:

• 2027: 15 GW

• 2028: 15 GW

• 2029: 12 GW

• 2030–2032: 10 GW annually

Innovation & hydrogen auctions replaced by resilience auctions

The EEG 2027 draft would discontinue the existing innovation auctions and replace them with a new auction format referred to as resilience auctions.

Innovation auctions were originally introduced to support renewable energy concepts that go beyond conventional wind and solar projects. Their primary objective was to encourage technologies that provide additional system value, particularly hybrid projects combining photovoltaic or wind generation with battery storage, as well as other innovative plant concepts capable of supporting grid stability and system integration. These auctions have so far been administered by the Federal Network Agency (Bundesnetzagentur) under the EEG and the innovation auction ordinance.

Under the new proposal, resilience auctions would take their place. Unlike the current innovation auctions, future tenders would no longer be awarded solely on the basis of price. Instead, qualitative criteria would also be taken into account. This approach is linked to recent European legislation, particularly the Net-Zero Industry Act (NZIA), which aims to strengthen resilient and sustainable supply chains for key clean energy technologies. The specific qualitative criteria, such as component origin, supply chain resilience or other sustainability-related requirements, are not yet defined in the draft and are expected to be specified in a separate ordinance at a later stage.

For the period 2027–2029, the following auction volumes are proposed:

• 3.5 GW of onshore wind

• 0.5 GW of ground-mounted photovoltaic projects (Segment 1)

The draft also removes the previously proposed auction scheme for renewable hydrogen power generation. These auctions had originally been intended as a dedicated support instrument for electricity generation from green hydrogen and to facilitate investment in electrolysers. However, they are no longer included in the current consultation draft. The draft does not provide a detailed justification for their removal. Instead, it focuses on adapting the existing EEG support mechanisms and strengthening their market- and system-oriented design.

Redispatch provision remains but is significantly softened

One of the most controversial aspects of the reform has been the proposed redispatch provision. Under the first consultation draft published in spring 2026, renewable generators located in so-called capacity-constrained areas would have faced considerable financial risks due to reduced compensation for redispatch measures. The current draft substantially softens these provisions:

• Higher threshold for capacity-constrained areas:
  An area may now only be classified as capacity-constrained if more than 5% of the electricity generated there had to be curtailed due to network congestion during the previous year. The first consultation draft had proposed a significantly lower threshold of 3%.

• Compensation is no longer completely removed:
  An even more important change concerns redispatch compensation. While the original proposal would have removed compensation entirely, the revised draft instead introduces only a deductible. Compensation would not be paid for 10–20% of annual generation (the exact percentage is expected to be determined later). For all redispatch volumes beyond this threshold, generators would once again be entitled to compensation. As a result, the financial risk for project developers and investors becomes considerably more predictable.

• Limited to six years:
  The duration of the redispatch provision has also been reduced. Whereas the original draft envisaged a period of up to ten years, the revised proposal limits the reduced compensation regime to a maximum of six years after commissioning. Once this period expires, generators would again be entitled to full redispatch compensation.

• Network operators face stronger expansion obligations:
  Finally, transmission and distribution system operators would be required to prioritise network expansion in capacity-constrained areas in order to reduce future congestion risks.

Permanent peak curtailment

Another important element of the draft is the introduction of permanent peak curtailment for renewable energy installations. Under the current framework, renewable energy plants are generally connected to the grid at their full technical capacity. The EEG 2027 proposal would instead introduce statutory limits on the maximum export capacity at the grid connection point, regardless of whether congestion actually occurs.

The proposed limits are:

• Onshore wind: connection capacity limited to 280 W per square metre of rotor swept area.

• Ground-mounted PV: maximum grid export permanently limited to 70% of installed capacity.

The objective is to prevent rare generation peaks from determining future grid expansion requirements. By limiting export capacity, network operators can design grid infrastructure for lower peak feed-in levels. For project developers and asset owners, however, this means that generation peaks would be permanently curtailed, reducing export revenues during a limited number of high-production hours. At the same time, the proposal creates stronger incentives to integrate battery storage and other flexibility solutions, allowing excess generation to be stored locally or shifted to periods with higher market value rather than being curtailed.

EEG support evolves into a two-sided Contract for Difference (CfD)

One of the most significant structural changes proposed in the EEG 2027 draft concerns Germany's renewable support mechanism. Under the new framework, the current market premium scheme would effectively evolve into a two-sided Contract for Difference (CfD).This reform does not come as a surprise. Earlier consultation drafts had already proposed such a mechanism, and the 2024 EU Electricity Market Design Reform encourages Member States to use two-sided CfDs for new public support schemes. The objective is to provide investment certainty while ensuring that generators also share part of exceptionally high market revenues with the public. Germany intends to implement these requirements through the introduction of the “Refinancing Contribution” (in German “Refinanzierungsbeitrag” (RB)) under Section 20a of the EEG.

From a one-sided to a two-sided support scheme

Under the current EEG framework, support essentially operates as a one-sided protection mechanism. Whenever the technology-specific market value falls below the applicable reference value ("anzulegender Wert"), the state pays the difference as a market premium. If market prices exceed the support level, however, generators retain the additional revenues. The proposed system would maintain protection against low market prices while introducing a repayment mechanism during periods of exceptionally high revenues. Whenever the annual technology-specific market value exceeds the applicable reference value, generators would be required to return part of these additional revenues to the state through the “Refinancing Contribution”.

Refinancing contribution: repayment during high market prices

The Refinancing Contribution forms the core of the new support mechanism. If the annual technology-specific market value exceeds the applicable reference value, renewable generators would have to repay part of their revenues according to the following formula:

Refinancing Payment = Annual technology-specific market value − Applicable reference value

Unlike the current EEG, which only protects generators against low electricity prices, the revised framework would also allow the state to participate in periods of exceptionally high market revenues. Generators would therefore continue to benefit from downside protection while sharing part of their upside revenues.

Minimum revenue instead of a “market value corridor”

The legislator has deliberately decided not to introduce a “market value corridor”. Consequently, the “Refinancing Contribution” would apply immediately once the annual technology-specific market value exceeds the applicable reference value. No tolerance band would exist within which repayments are reduced or waived. Instead, the proposal introduces minimum revenue thresholds, limiting the amount that can be reclaimed through the “Refinancing Contribution”.

After repayment, generators must retain at least:

• 1.5 ct/kWh for offshore wind,

• 0.5 ct/kWh for solar,

• 1.0 ct/kWh for all other renewable technologies.

As a result, repayments begin immediately once market values exceed the strike price, while ensuring that generators always retain a minimum level of revenue.

Scope of application

The new rules would apply to almost all renewable energy projects with an installed capacity of 100 kW or more. Biomass plants remain exempt from the “Refinancing Contribution”. Germany therefore goes beyond the minimum requirements of the EU Electricity Market Design Reform, which would have allowed Member States to exempt installations of up to 200 kW under the Renewable Energy Directive (RED II). Germany has chosen not to make use of this exemption.

New rules for "sonstige Direktvermarktung "

The proposal also changes the rules for projects which wants to switch to the “sonstige Direktvermarktung”. Under the direct marketing scheme, renewable generators market their electricity directly on the market without receiving financial support under the EEG. EEG-supported installations can switch from the market premium scheme to this form of direct marketing. Under the current framework, renewable generators can leave the EEG support scheme during periods of high electricity prices and market their electricity independently. This option remains available also in the new regulation. However, projects operating under the form of the “sonstige Direktvermarktung” would also become subject to the “Refinancing Contribution” under the new proposal. At the same time, project owners would be granted a one-time option to permanently exit the EEG support scheme before the end of the tenth year of operation.

These changes could also affect the German Power Purchase Agreement (PPA) market. Until now, switching from the EEG support scheme to the “sonstige Direktvermarktung” has provided renewable generators with additional commercial flexibility when entering into long-term PPAs. Since the “Refinancing Contribution” would also apply under this marketing route, the financial incentive to leave the EEG scheme would be significantly reduced. As a result, fewer subsidised renewable projects may enter the PPA market, potentially reducing liquidity and limiting the supply of eligible operating assets. The market could therefore become increasingly focused on newly built, unsubsidised renewable projects.

The proposed changes may be especially relevant for offshore wind. In recent years, several offshore wind projects have opted for long-term PPAs under other forms of direct marketing despite remaining eligible for EEG support. One important reason has been Germany's dynamic offshore auction design, under which successful bidders have often committed to substantial concession payments. Long-term PPAs outside the EEG framework have therefore offered additional commercial flexibility. If the extension of the “Refinancing Contribution” largely removes this option, future offshore wind projects may face additional financing and commercial challenges.

Conclusion

The EEG 2027 consultation draft proposes a broad range of adjustments to Germany's renewable energy support framework. Among the most significant changes are the gradual transition of new rooftop PV systems into direct marketing, the introduction of a two-sided CfD mechanism through the “Refinancing Contribution”, and substantially higher auction volumes for onshore wind and ground-mounted solar projects. While the larger auction volumes are intended to support continued renewable deployment, the new rules for rooftop PV, particularly the gradual extension of mandatory direct marketing, could influence future installation rates in this segment.

The draft also introduces several measures aimed at improving the integration of renewable generation into the electricity system. Permanent peak curtailment and the revised redispatch provision are intended to reduce future grid expansion requirements while encouraging a more system-oriented deployment of renewable energy. At the same time, these measures also alter the commercial framework for project developers and asset owners. Compared with earlier consultation drafts, however, the redispatch provisions have been significantly softened through higher qualification thresholds, limited deductibles and a shorter period during which the reduced compensation rules apply.