Solar I Package - Further Improvements for Solar Power Systems

We’ve reported on the principal changes to the Solar I Package with respect to decentralised energy supply. But the Package also deregulates certain aspects and contains numerous incentives to encourage the development of projects involving solar electricity systems.

More flexible use of battery storage

The German coalition government enacted various amendments to the Renewable Energy Act (EEG) to provide a more flexible option for the use of power stores:

Until now, subsidies have been available for electricity from renewable energy sources (RE electricity) fed into the grid from battery storage, provided that only RE electricity was used to charge the battery for the whole year. The Solar I Package inserts a new § 19 (3a) into the EEG, which allows RE electricity to be subsidised even where the feeding battery was not charged solely with RE electricity for a whole year. The operator of the battery may now switch the operating mode of the battery five times within a year, providing there is at least two months between each switch. For those periods in which the battery is charged solely with RE electricity, the battery will be considered a RE facility and entitled to subsidies under the EEG.

Tenders for larger facilities

The Package increases the maximum tender size for solar installations in the first segment from 20 to 50 MWp. This welcome change allows project developers to receive subsidies for facilities with economies of scale, making them more cost-effective.

Opt-out rule for disadvantaged regions

Electricity from solar power can be subsidised, for example, when the facility is in a so-called “disadvantaged region”. Until now, the German Länder could open up their disadvantaged regions for RE electricity generation but were not required to do so (so-called “opt-in rule”).

This rule has been reversed and is now an opt-out rule: disadvantaged regions are legally considered open (without requiring the approval of the Länder). Each Land must open up at least one per cent of its agricultural areas by the end of 2030. This minimum share will then increase to 1.5%. Once these thresholds are exceeded, the Land can again close certain disadvantaged regions to the production of electricity from renewable energy sources.

In addition, disadvantaged regions are now open to solar farms that cannot participate in tenders. Accordingly, project developers can establish smaller photovoltaic systems (rated output under 750 kWp) in disadvantaged areas.

Tolerance obligation for the expansion of the grid and power lines

The Solar I Package allows developers of photovoltaic systems to demand that the legal users of public properties tolerate the installation of power lines. This is designed to significantly speed up renewable energy projects and the expansion of the grid. The adopted law does not go as far as the draft bill, which subjected all property owners, including private owners, to this tolerance obligation.

Similarly, new § 11b of the EEG provides a right of way over publicly-owned property during the construction and dismantling of wind farms.

New tender procedure for special systems

Special systems (agricultural photovoltaic systems, systems on parking lots, etc.) were previously at a disadvantage when tendering output capacity as the basic costs of such projects were typically higher than those of systems built in open spaces where construction is easier. To counteract this effect, the entry into force of the Solar I Package will make it possible to tender special systems separately in the first segment.

As developers of special systems no longer need to compete against conventional plants built in open spaces, new open spaces will become viable in agricultural areas, on parking lots, in grasslands, and on moors.

Summary

The Solar I Package contains key changes, which will facilitate the construction and expansion of photovoltaic plants.

Again: after the Solar I Package comes Solar II. Various issues still need deregulating and numerous legal incentives are still needed if the full potential of the expansion necessary to reach national and European climate goals is to be achieved.

Dr Christof Aha
Dr Malaika Ahlers
Anton Buro
Leopold Linden