Policies in Germany

In Germany, the main support schemes are defined in the Renewable Energy Sources Act (EEG 2021). Electricity from all renewable sources is subsidised by the market premium. For installations with higher capacity (in general above 750 kW), the award and the level of the premium is determined through a tendering scheme. Smaller plants generating electricity from all RES can benefit from a feed-in tariff. Moreover, the EEG supports the deployment of biomass plants. Low interest loans for investments are provided for by different KfW Programmes.
In the NECP Germany expects a share of 30 % renewable energy in the total energy supply and 65 % in the electricity sector.

• Feed-in tariff: a fixed feed-in tariff for electricity generated from small installations.
• Premium: Market Premium: a premium calculated added to the market price that is paid to operators who do not receive the feed-in tariff and are not required to participate in the tendering procedure
• Tenders/Auctions: Sliding Market Premium: larger plants are required to participate in the tendering procedure to receive a sliding market premium
• Tenant Electricity Surcharge: a subsidy for electricity generated and consumed in the same building
• Flexibility Surcharge: an investment incentive in the construction of flexible power plant capacities that enable demand-oriented electricity production
• Flexibility Premium: plant operators receive financial support if they increase the installed capacity of their plants
• Innovation tenders: tenders for innovative installations
• KfW Climate protection initiative for small and medium enterprises: a subsidy and low interest loan for projects reducing, preventing, or capturing greenhouse gases
• KfW Renewable Energies Programme Standard: low interest loan for renewable energy projects for electricity production
• KfW Renewable Energies Programme Premium: low interest loan and subsidy for biomass and geothermal energy projects
• KfW Renewable Energies Programme Premium – Deep Geothermal Energy: loan and repayment bonus for deep geothermal energy installations
• KfW Offshore Wind Energy: direct loan and financing package for offshore wind-power-parks
• Exemption of the Electricity tax

• BNA
• Clearing Office
• BMWi
• BMEL
• BMBF

Germany is aiming for a share of 20,5 % in the year 2025 and 27 % in the year 2030 of renewable energies in the heating and cooling sector (NECP 2020). Through the KfW and BAFA, several subsidies and low interest loans are granted for installing renewable energy heating and cooling systems. These installments are further subsidized with a tax support scheme.
District heating grids are not regulated on federal level but can benefit from a subsidy.

• Loan and Subsidy(KfW Renewable Energies Premium)
• Loan (KfW Renewable Energies Standard)
• Subsidy (Federal subsidy for energy efficient buildings – single measures)
• Tax regulation mechanism (Support for the energy-efficient renovation of private buildings)
• RES-H building obligations

• BAFA
• BMF
• BMWi

Germany is heavily subsidizing the purchase of electric vehicles (EV) and the construction of infrastructure for EV. New EVs are also exempt from the vehicle tax. Beside this, companies placing fossil fuels on the market must fulfil a greenhouse gas reduction quota.
The share of renewable energies in the transport sector is expected to be 13 % in 2025 and 27 % by 2030.

• Subsidy (Environmental Bonus) – grant for EV
• Subsidy (Innovationsprämie) – grant for EV
• Susbidy (E-Cargo Bikes)
• Loan (Motor Vehicle Environmental Programme)
• Tax regulation mechanism (Motor Vehicle Tax Exemption)
• Biofuel/Emission reduction quota
• Support of RES-T infrastructure – charging for e-vehicles

• BAFA
• BMVI
• BAV

German law foresees different authorisation processes for wind onshore, wind offshore and ground-mounted solar energy. Territorial and regional laws define what sites are eligible. The authorisation is usually done by regional authorities. Several federal laws (e.g., Immission protection act) must be considered. Citizen initiatives might also play a role in the authorization process. The fiscality is regulated at the federal level.
In the German Climate Strategy, the shift to renewable energies in the electricity sector is seen as a top priority. Wind and solar energy play the most significant roles in the strategy. In this section the permit and authorization processes are thus described for the following technologies: onshore wind, offshore wind and ground-mounted solar energy.

1. Site Selection
2. Administrative Authorisation
3. Grid Connection
4. Corporate-Legal/Fiscal

• BSH
• BMWi
• BNA
• BFM