Fifteen solar developers warn that planned changes to Germany’s renewable energy law, grid connection rules, and network charges could raise ground-mounted solar costs by up to 30%, prompting calls to increase the auction ceiling from €59 ($65.91)/MWh to at least €70/MWh.
Fifteen photovoltaic project developers, including RWE, Enertrag, BayWa r.e., Belectric, Juwi, and GP Joule, have called for a higher auction price ceiling for ground-mounted solar projects in Germany from 2027, warning that planned policy and regulatory changes could undermine project economics.
The companies argue that the current ceiling of €59/MWh may no longer allow economically viable bids. More frequent negative wholesale electricity prices and the planned shift to two-sided contracts for difference would reduce revenues, including during periods of high electricity prices.
Further cost pressures could come from new capacity charges under the German Federal Network Agency’s AgNes process. Under the regulator’s proposal, operators of new generation plants with capacities above 30 kW would pay a grid feed-in charge from 2029. A rate of around €4/kW to €7/kW per year is under discussion.
The developers cite a Prognos study commissioned by the German Association of Energy and Water Industries (BDEW), which estimates that the planned changes to the Renewable Energy Sources Act (EEG), grid connection package, and AgNes network charging system could increase the levelized cost of electricity from ground-mounted solar by up to 30%. The resulting costs would be €13/MWh to €15/MWh above the current auction ceiling of €59/MWh.
The companies want the ceiling for auctions held in 2027 raised to at least €70/MWh. From early 2028, they propose a sliding ceiling based on the results of the three most recent auctions. The limit would be calculated from the average of the highest-priced successful bids, plus an 8% buffer, subject to a proposed cap of €70/MWh.
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