Germany raises auction support rates for ground-mounted solar PV by 25 percent

Germany’s Federal Network Agency (BNetzA) has increased maximum support rates for ground-mounted solar system tenders by 25 percent to 7.37 cents per kilowatt-hour (kWh). The move is expected to make investment in photovoltaic (PV) projects more attractive. "By raising the maximum rate for ground-mounted solar systems, we are also ensuring stable conditions in this segment in order to be able to achieve the necessary expansion targets," said BNetzA head Klaus Müller. "The bidders should be able to make adequate bids with the new rate.” Müller added that the agency was ensuring “reliable framework conditions for the energy transition”. The higher rates are a response to increasing construction and operation costs as well as higher interest rates, the agency said.

With a maximum rate of 5.9 cents per kilowatt-hour, ground-mounted system tenders last year were undersubscribed. The new rates are expected to change that. German lawmakers in December expanded the agency’s oversight with regard to renewable power rates. It can now increase PV rates by up to 25 percent, 15 percentage points more than before. BNetzA has already increased auction rates for onshore wind energy and rooftop solar systems. The new rates apply to tenders in 2023, including the next auction scheduled for March. German solar power association (BSW Solar), which has repeatedly pushed for a rate increase in solar tenders, welcomed the move, noting the lack of participation in last year’s tenders. It also called for the removal of other market barriers “in order to unleash photovoltaics as intended by the federal government”.