Germany, the bidding price for rooftop solar energy will be lowered in 2024!

The Federal Network Agency of Germany has lowered the price ceiling for rooftop solar bidding in 2024 from 0.1125 euros (approximately 0.12 US dollars)/kWh in 2023 to 0.105 euros (approximately 0.12 US dollars)/kWh.

The price ceiling for onshore wind and ground solar power (0.735 euros (approximately 0.80 US dollars)/kWh) is the same as in 2023.

According to the organization, the maximum price limit for rooftop solar energy has been lowered due to the decrease in project costs. In the previous round of bidding in 2023, there were not many bids exceeding 0.105 euros (approximately 0.12 US dollars)/kWh. In the 191MW rooftop solar bidding in November 2023, there was a 195% oversubscription. The weighted average price for the awarded capacity is 0.0958 euros (approximately 0.10 US dollars)/kWh, which is 0.006 euros (approximately 0.0065 US dollars)/kWh lower than the previous round of bidding.

Klaus M ü ller, President of the Federal Energy Network Agency, said, "We are establishing a reliable framework for bidding. The price cap takes into account the actual cost of renewable energy. In the near future, we will consider setting price caps for biomass energy, biomethane, and innovative bidding."

If the Federal Energy Network Agency does not establish a new price cap, the price cap will be lowered to the lower limit stipulated by the Renewable Energy Act, which is 0.588 euros (approximately 0.64 US dollars)/kWh for onshore solar energy, 0.590 euros (approximately 0.64 US dollars)/kWh for terrestrial photovoltaic systems, and 0.891 euros (approximately 0.97 US dollars)/kWh for rooftop solar energy.

Due to a lack of interest, the initial bidding volume for onshore wind power held by the Federal Energy Network Agency in September 2023 was reduced from 3192MW to 1667MW, with only 1436MW subscribed.

Against the backdrop of changes in the cost and interest rates of development and operation projects, the Federal Network Agency has announced a new price ceiling.

Considering the poor response to solar and wind power bidding in 2022, the Federal Network Agency raised the maximum electricity price ceiling by 25% in 2023. Afterwards, the response to solar bidding has significantly improved. In the solar and energy storage bidding held in October 2023, a total of 32 projects were awarded, with a minimum electricity price of 0.077 euros (approximately 0.081 US dollars)/kWh. This tender received 95% oversubscription and a total of 53 bidding proposals, with a total bid volume of 779MW.

In the third quarter of 2023, Germany's solar installed capacity was 3.4GW, an increase of 79% from 1.9GW in the same period last year, but a decrease of 5.6% from 3.6GW in the previous quarter.