Recently, the German parliament formally approved a photovoltaic subsidy mechanism named “Solarspitzen” (Solar Peaks). This mechanism introduces a dual-track system of “flexible subsidies + smart regulation,” marking a comprehensive overhaul of photovoltaic subsidy policies.
The core of the “Solarspitzen Plan” lies in establishing a dual mechanism of dynamic subsidy suspensions and smart meter compensation. For new photovoltaic systems exceeding 2 kW in capacity, subsidies will be automatically suspended when negative electricity prices occur in the spot market, aiming to avoid the waste of financial resources. This measure targets the frequent occurrence of negative electricity prices during peak photovoltaic power generation periods in German summers in recent years, encouraging consumers to use electricity during these periods and reducing grid subsidy expenditures.
The “Solarspitzen Plan” stipulates that if a photovoltaic system is equipped with a smart meter, the lost feed-in tariff subsidies can be recorded and accumulated after the end of the 20-year subsidy period, essentially extending the subsidy duration. This measure aims to safeguard the legitimate rights and interests of photovoltaic power stations while encouraging station operators to actively install smart meters.
For photovoltaic power stations without smart meters, the policy also provides corresponding compensation schemes. However, the compensated electricity will be calculated at 60% of its power, undoubtedly reducing the profit margin of the stations. Therefore, for station operators, equipping with energy storage systems and installing smart meters has become the best choice.
Energy storage systems store electricity during negative pricing periods and release it during high-load periods, not only earning high electricity fees but also avoiding losses due to feeding electricity into the grid during negative pricing periods. Meanwhile, since these stations do not participate in grid subsidies during negative pricing periods, their subsidies remain unaffected. Taking a 20MW photovoltaic power station in Nordrhein-Westfalen as an example, after installing an energy storage system, the station stored 1.2GWh of electricity during negative pricing periods in 2023 and earned about 80,000 euros through peak-valley price differences, achieving “profitability against the market trend.”
The German Photovoltaic Industry Association (BSW) expressed support for the new policy, believing that the new measures will not significantly impact the profitability of new photovoltaic systems, and that photovoltaic stations equipped with energy storage and smart meters may even benefit. In addition, the policy is not mandatory, and existing photovoltaic power station operators can voluntarily choose whether to switch to the new regulations. Stations switching to the new mechanism will also receive an increase of 0.006 euros (approximately 0.003 USD) per kWh in feed-in tariff subsidies.
