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The market premium balances remuneration and exchange price — a key mechanism under the German Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, EEG).
The market premium is a central component of the direct marketing model under the German Renewable Energy Sources Act (EEG). It compensates for the difference between the applicable value (the eligible remuneration rate) and the actual market value of the electricity fed into the grid. Plant operators sell their electricity independently on the exchange or through a direct marketer, while also receiving the market premium from the grid operator.
Instead of receiving a fixed feed-in tariff for the electricity generated under the traditional EEG support scheme, the electricity is sold directly on the market, for example on the EPEX spot market. If the market price is below the applicable value, the difference is paid out as a market premium. If the market price is above the applicable value, the plant operator benefits accordingly. This creates an incentive for market-oriented generation and for integrating renewable energy into the electricity market.
• Ground-mounted PV systems > 100 kWp (subject to mandatory direct marketing)
• Wind turbines, biogas plants, or hydroelectric power plants within the EEG system
• Project developments awarded an EEG tariff through tenders
• Combination with PPA models, e.g. fixed price plus market premium in full feed-in models
• Systems with hybrid operation, e.g. self-consumption plus surplus feed-in
• Applicable value (ct/kWh): support value defined individually for each system
• Market value (ct/kWh): technology-specific average price on the spot market
• Market premium level: variable, depending on the exchange price
• Direct marketing obligation: mandatory for installed capacity of 100 kWp or more
• Billing arrangements: daily or monthly settlement via direct marketers and grid operators
The market premium is a key instrument of the energy transition, promoting the market integration of renewable energy. It enables economically predictable revenues for plant operators while electricity is marketed directly. For companies with large PV systems or new renewable energy projects, the market premium in direct marketing is an important part of the revenue structure, particularly in combination with PPA models, battery storage, and energy trading.
