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The EEG regulates the promotion of renewable electricity in Germany — with fixed remuneration, tenders, and incentives for investments in green energy.
The Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, EEG) is the central legal framework for promoting electricity from renewable energy sources in Germany. It defines how operators of photovoltaic, wind, and other renewable energy plants are remunerated for electricity fed into the grid and establishes stable framework conditions for investments in renewable energy.
The EEG guarantees plant operators either a fixed feed-in tariff or a market premium per kilowatt-hour of electricity fed into the grid over a defined period (usually 20 years). The remuneration was historically financed through the EEG surcharge, which has largely been abolished.
For many new plants, tendering procedures now apply, in which operators must competitively bid for the level of support. The EEG also regulates self-consumption and the direct marketing of renewable electricity.
• Photovoltaic systems on rooftops of private homes or commercial buildings
• Ground-mounted PV systems in rural areas
• Wind turbines onshore and offshore
• Biogas and hydropower plants for baseload electricity supply
• Combination of EEG remuneration with self-consumption or battery storage
• Feed-in tariff (ct/kWh): amount of state-guaranteed remuneration
• Degression: annual reduction of remuneration levels for new installations
• Tender volume: amount of renewable electricity capacity awarded annually through auctions
• Market premium: difference between market price and guaranteed EEG remuneration
The EEG has been a key driver of the rapid expansion of renewable energy in Germany. It provides long-term planning security for plant operators and promotes the economic use of solar, wind, and other renewable energy sources.
