Shedding Light on Solar Power Adjustments: What's New for Photovoltaic System Owners
Photovoltaic system proprietors have control over their renewable energy production
Homeowners with photovoltaic systems are gearing up for changes in feed-in rules, discover what's next for solar panel owners with our guide to the Solar Peak Law.
Generating electricity through solar panels relies on a variety of factors, including weather and sun position. In Germany, a considerable amount of electricity is produced at midday, which occasionally overloads the power grid. In response, the previous federal government introduced the Solar Peak Law, effective since the end of February 2025. This legislation aims to distribute solar power more evenly throughout the day, eliminating peak loads during specific times.
At its core, the law necessitates that newly installed photovoltaic systems with a capacity of seven kilowatt-peak (kWp) or more can only feed in electricity without restriction if they are equipped with an intelligent metering system (iMSys) and a technical device to control the system. Prior to the installation of these technologies, the feed-in capacity is initially limited to 60 percent of the system's rated power. Systems under seven kWp will also face permanent limitations, regardless of the installation of an intelligent metering system.
Alleviating the Grid's Burden
However, even with an intelligent metering system, systems of two kWp or more will not receive feed-in compensation if the wholesale electricity price is negative. This scenario occurs when excess solar power is produced without buyers on the electricity exchange. The lost compensation will be reimbursed with a 20-year delay.
This legislation aims to reduce feed-in during times when the grid is under the most strain (such as midday) and encourages owners to consume or store the electricity themselves and feed it in at a later time, after the sun has set.
Industry's Perception
The German Solar Energy Association (SFV) has criticized this new legislation. Professor Dr. Frank Hergert, Professor of Renewable Energy Technology at the University of Koblenz and a member of the SFV's board, argues that the 60 percent feed-in limitation without control technology can lead to significant energy losses. He further points out that the limitation applies even if there is no local network overload. According to Hergert, this regulation primarily responds to market signals, such as wholesale electricity prices, rather than the actual local network situation.
Professor Hergert also highlights that operators of smaller PV systems without smart meter infrastructure will face economic disadvantages moving forward. Although self-consumption and battery storage can offset these losses, these investments may not be practical or profitable for all households. The SFV views this new legislation as a potential risk to the decentralized growth of solar power, which has been a cornerstone of Germany's energy transition.
On the other hand, industry experts like Oliver Koch, CEO of the Allgäuer company Sonnen, which produces intelligent storage systems, see opportunities for consumers in this newly regulated compensation. For instance, Koch notes: "The new law rewards the optimal time to feed electricity into the grid, not just the quantity. For households, this means: Intelligent energy management and a storage system are now an absolute necessity, as without it, you'll lose money."
According to Sonnen's calculations, the elimination of remuneration through negative prices could lead to a 25% drop in revenue, which is more substantial than the 8% drop caused by the feed-in cap, as reported by the SFV. Koch believes that this can be mitigated through intelligent "direct marketing" of surplus solar electricity, which can be sold when the prices are optimal, not when they drop into the negative. Additionally, the storage system can be charged based on forecasts, including weather predictions. This means the storage system won't start charging in the morning but only when the 60% threshold is exceeded.
Having an intelligent metering system becomes essential for direct marketing, but Germany is lagging with only a 2% share of homes equipped with this technology. The Federal Network Agency has already sent warnings to around 700 companies for being slow in introducing intelligent metering systems - all new installations should be equipped with them by the end of 2026.
Tips for Photovoltaic System Owners
If your installation is commissioned after the deadline of February 25, 2025, we recommend having an intelligent metering system (iMSys) with a controllable device installed or requested to bypass the limitation of the feed-in capacity and secure compensation at full solar yield. Although this results in additional costs for PV system owners, a smart meter protects against permanent yield losses and offers flexibility for future direct marketing or smart consumption control. Direct marketing is not subject to the restriction.
A battery storage system can help increase self-consumption, reduce yield losses due to feed-in limitations, and largely offset the 60% rule with an intelligent and forecast-based system. Households should consult an installer on the economic viability of a storage system that suits their needs.
Systems with a peak power of up to 7 kWp are currently not affected by the obligation for control technology but will also face feed-in compensation restrictions during periods of negative market prices. They will also eventually require an intelligent metering system and control device.
If your system was installed before the deadline, you have nothing to worry about: existing remuneration schemes and technical conditions continue to apply. However, these systems will eventually receive an intelligent metering system and control device from 7 kWp. Additionally, retrofitting a storage system or energy management systems can be useful for optimizing self-consumption or integrating new consumption devices like wallboxes.
In conclusion, the Solar Peak Law should not have as detrimental an impact as many market observers fear, if PV system owners utilize the new opportunities provided by the law to offset restrictions. In fact, the law could even provide savings or income opportunities for households as flexibility becomes increasingly valuable.
Sources: ntv.de, awi/spot
- Solar energy
- Smart energy management
- Renewable energies
- Photovoltaic systems
- Energy transition
- German energy market
- Climate change
- Energy storage systems
- Grid connectivity
- Rooftop solar
Enrichment Data:
The query about the "Solar Peak Law" in Germany does not directly align with the provided search results. However, the search results do offer insights into recent developments and policies affecting photovoltaic systems in Germany. Here's a summary of the key changes and impacts relevant to private photovoltaic system owners:
Key Developments and Policies in Germany
- Photovoltaic Expansion and Mandates:
- Germany has achieved significant growth in solar capacity, reaching over 100 GW by the end of 2024, with ongoing efforts to expand solar installations[1].
- There are plans to make PV systems mandatory in new buildings, as part of the government's coalition agreement[2].
- Rooftop Solar Tenders:
- Germany is conducting rooftop solar tenders, aiming for 1.1 GW of new rooftop PV capacity in 2025[3].
- Regulatory Environment:
- The Renewable Energy Sources Act (EEG) governs compensation for renewable energy, but specific changes under a "Solar Peak Law" are not mentioned in the search results.
- Parking lot PV installations are subject to specific regulations, particularly in certain states, where they are mandatory for new parking lots[5].
- Impact on Feed-in and Compensation:
- Traditionally, the EEG provided a feed-in tariff for renewable energy producers. However, with the increasing focus on self-consumption and market integration, the compensation structure may evolve[5].
- The current regulatory environment does not specifically address "Solar Peak Law" impacts on compensation, but it reflects a broader shift towards integrating solar energy into the grid and promoting self-consumption.
- The Solar Peak Law in Germany aims to redistribute solar power more evenly throughout the day, reducing peak loads during specific times.
- Newly installed photovoltaic systems with a capacity of 7 kilowatt-peak (kWp) or more will require an intelligent metering system (iMSys) and a technical device to control the system to feed in electricity without restriction.
- Due to the Solar Peak Law, systems of 2 kWp or more will not receive feed-in compensation if the wholesale electricity price is negative, which occurs when excess solar power is produced without buyers on the electricity exchange.
- The lost compensation due to negative prices under the Solar Peak Law will be reimbursed with a 20-year delay.
- German Solar Energy Association (SFV) criticizes the 60 percent feed-in limitation without control technology, arguing it can lead to significant energy losses and economic disadvantages for smaller PV systems without smart meter infrastructure.
- Industry experts, like Oliver Koch from Sonnen, see opportunities for consumers in the Solar Peak Law, as it rewards optimal times to feed electricity into the grid and necessitates intelligent energy management and storage systems.
- Germany lags with only a 2% share of homes equipped with intelligent metering systems, and the Federal Network Agency has already sent warnings to around 700 companies for being slow to introduce them.
- Smart energy management and renewable energies, such as solar energy, are essential to alleviate the grid's burden and promote the growth of sustainable energy sources.
- Existing remuneration schemes and technical conditions continue to apply for systems installed before the Solar Peak Law deadline, but these systems will eventually require an intelligent metering system and control device from 7 kWp.
- A battery storage system can help increase self-consumption, reduce yield losses due to feed-in limitations, and offset the 60% rule with an intelligent and forecast-based system.
