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The Solar Cap has been removed

In June 2020, Germany’s Federal Government removed the cap on solar investment support. As a result, photovoltaic systems with a peak performance of 750 kilowatts per hour will continue to benefit from subsidies under the Renewable Energy Sources Act (EEG).  


What is a Solar Cap?

In 2012, §19 of the EEG established a clear-cut upper limit to governmental funding concerning newly constructed photovoltaic systems. The limit was 52 giga-watts. Based on recent analysis, this upper limit would have been exceeded in the fall of 2020.


Which scenario would have happened without removing the Solar Cap?


Any newly constructed photovoltaic systems delivering energy to the public network after the limit had been reached would have been excluded from guaranteed feed-in remuneration.

By removing the Solar Cap, Germany’s Federal Government avoided this specific scenario, which would have imposed a severe disadvantage to future investors.

Statistics regarding current numbers of photovoltaic systems and their performances are available via the governmental net agency (Bundesnetzagentur).

Are photovoltaic systems profitable even without subsidies?


Of course photovoltaics are still financially very attractive. Operators of solar systems may expect a return of investment in double figures as long as the company is consuming self produced energy and marketing the surplus. 


Companies which do not rely on energies taken from the expensive networks are saving roughly 11 cents per kilowatt hour (refer to Development of Energy Prices). The higher your internal consumption, the greater the benefit to the development of energy saving rates and investment returns. 


Are you interested in more information? 


Please feel free to contact our office to speak with a representative or to request further informative documentation.

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