EEG Surcharge

The EEG levy (levy for the promotion of energy generation from renewable sources under the Renewable Energy Sources Act) was a charge introduced in Germany to finance the expansion of renewable energy, particularly photovoltaics. It was levied as a surcharge on the electricity price and formed the basis for the remuneration of electricity from renewable sources.

Functionality:

• Promotion: The EEG levy was intended to cover the difference between market prices for electricity from renewable sources and the guaranteed feed-in tariffs. This provided long-term planning security for investors in photovoltaic systems.
• Collection: The levy was collected by grid operators and passed on to the operators of renewable energy generation plants.
• Distribution: The funds from the EEG levy were used to promote various technologies such as solar, wind, and hydropower.

Objective:

The EEG levy aimed to accelerate the expansion of renewable energies in Germany and thereby contribute to the energy transition and climate protection. By promoting photovoltaics, the use of solar energy as a virtually inexhaustible energy source was to be intensified.

Development and End:

The EEG levy was adjusted and discussed several times in recent years. Due to falling costs for renewable energies and changing framework conditions, the levy was abolished in its original form on July 1, 2022. Since then, the costs for expanding renewable energies have been financed in other ways.

Relevance for Photovoltaics:

The EEG levy played a crucial role in the development of photovoltaics in Germany. It enabled the technology to become competitive and promoted a wide market entry. With the abolition of the levy, new funding mechanisms and business models for photovoltaics have emerged.

Keywords: Renewable Energies, Photovoltaics, Feed-in Tariff, Energy Transition, Grid Operators, Funding