Renewable energies are already competitive – and yet the EEG is set to continue with its funding logic. The DIHK sees this as the wrong path: it advocates for a clear, planned exit from state operating cost subsidies towards a market-based expansion of renewable energies.
The Key Points at a Glance
- Renewable energies are market-ready: According to the majority opinion in the business community, permanent government operating cost subsidies, as proposed by the EEG amendment, are no longer necessary. If subsidies are provided at all, they should be targeted as investment subsidies.
- Contracts for Difference (CfDs) hinder the market: The planned CfDs weaken price signals, hinder investments in storage and flexibility, and increase system costs in the long term.
- Expansion targets must be linked to demand: Fixed target figures without reference to actual electricity consumption create expensive overcapacities at the expense of business.
- Maximum values in tenders are too high: For onshore wind energy and solar power, the current maximum subsidy values are significantly above market prices—this prevents fair competition.
- Strengthen self-supply: Zero-feed-in systems that serve exclusively for self-consumption should be fully exempt from bureaucratic requirements.
Background
The EEG has shaped Germany's energy transition for over 25 years. It has significantly enabled the market ramp-up of renewable energies and created investment security – with the result that wind and solar energy are now largely competitive without subsidies.
Accordingly, Power Purchase Agreements (PPAs) – direct supply contracts between producers and consumers – work well. They also achieve significantly lower prices than in the subsidised segment. Nevertheless, the current draft bill from the Federal Ministry for Economic Affairs and Climate Action calls for the introduction of so-called Contracts for Difference (CfDs) – an instrument that guarantees producers a reference price, thus weakening market price signals.
At the same time, system costs from EEG funding and grid expansion are rising massively. A study commissioned by the DIHK from Frontier Economics projects an increase in grid fees of 60 to 70 per cent on average for industry and commerce by 2045, and up to 130 per cent for companies at the highest voltage level.
In its statement on the "draft bill for a planned, cost-efficient, grid-compatible, and market-oriented expansion of renewable energies in the electricity sector", the DIHK highlights the following points:
DIHK's Demands
Investment funding instead of operating funding
If funding is deemed politically necessary, it should be designed as an investment grant or through risk hedging models for PPAs – not as permanent market premiums.
Clear funding exit path by 2045
Funding durations for new plants should be designed so that no new funding entitlements arise after 2045.
Tie expansion targets dynamically to electricity demand
An annual adjustment of expansion targets to actual consumption avoids costly overcapacities and ensures supply security.
Significantly reduce tender ceiling prices
For onshore wind and solar energy, ceiling prices should be reduced by up to 30 per cent, with annual degression.
Anchoring competitiveness as an EEG goal
The law should explicitly name the competitiveness of the German economy and the facilitation of corporate climate neutrality as objectives.
Legally define and relieve zero-feed-in plants
Plants used exclusively for self-consumption and not feeding into the public grid should be exempt from grid connection procedures, reporting obligations, and redispatch regulations.
Download
The DIHK statement of 31 July 2026 on the draft bill for a planned, cost-efficient, grid-compatible, and market-oriented expansion of renewable energies in the electricity sector can be accessed here:
DIHK Statement EEG (PDF, 277 KB)(only available in German)
- Relevant in topic:
- Energy and climate policy
- Key areas:
-
- Climate
Released 31.07.2026
Modified 19.08.2026
