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Renewable Energy Law; Renewable Energy Act (German: Erneuerbare-Energien-Gesetz, EEG)

The law providing for the priority of Renewable Energy Sources -Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, EEG) - for the first time became effective on April 1st, 2000 in Germany. Among other things, it provides a substantial compensation for solar electricity (Feed-in tariff; FiT).

According to this law, grid operators have to pay a from approx. 24 Euro Cent/kWh (ground-mounted PV systems on conversion areas) up to approx 33 Euro Cent/kWh (PV rooftop installations ≤ 30 kWp) for electricity generated from solar radiation provided to the utility grid (Status: Oct. 2010). Compensatory payments are paid by all electricity consumers according to a nation-wide cost-sharing arrangement.

Meanwhile approx. 70 nations worldwide enacted similar legislation based on FiT schemes to effectively support the growth of solar photovoltaics (PV) and other renewables.

Further information

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