Feed-In Tariff

The feed-in tariff is a government-set compensation that operators of photovoltaic systems receive for the electricity they feed into the public power grid. It serves as an incentive to promote renewable energies and is a central component of the energy transition.

How It Works

Electricity producers with photovoltaic systems who do not consume their generated electricity immediately can feed it into the public grid. For each kilowatt-hour (kWh) fed into the grid, they receive a fixed compensation from the grid operator. The amount of this compensation is regulated by the Renewable Energy Sources Act (EEG) and is based on various factors such as the installed capacity of the system, the time of commissioning, and the regional electricity price.

Goals of the Feed-in Tariff

• Expansion of Renewable Energies: The feed-in tariff aims to promote the expansion of photovoltaic systems and thus contribute to the energy transition.
• Climate Protection: By using solar energy, greenhouse gas emissions are reduced and dependence on fossil fuels is decreased.
• Energy Security: Decentralized electricity generation through photovoltaic systems increases supply security and makes the energy system more independent of central power plants.

Development of the Feed-in Tariff

Feed-in tariffs are subject to dynamic development. In the early years of photovoltaics, the compensation rates were very high to establish the technology. With increasing market growth and decreasing costs for photovoltaic modules, the compensation rates have been gradually reduced. Nevertheless, the feed-in tariff remains an important incentive for investments in solar systems.

Current Developments

The current discussion about the feed-in tariff mainly revolves around the question of how the promotion of photovoltaics should be designed in the future to continue driving expansion while keeping costs for consumers within limits. Models are also being discussed that promote greater self-consumption by system operators and complement the feed-in tariff.

Relevant Keywords: Renewable Energies, Photovoltaics, EEG (Renewable Energy Sources Act), Power Grid, Kilowatt Hour (kWh), Energy Transition, Decentralized Energy Generation, Self-Consumption