The German Solar Industry Association warned that the plans of the German Federal Ministry for Economic Affairs threaten the expansion of solar energy in the country.

The association explained that the elimination of subsidies for new small solar systems starting in 2027, as proposed, would lead to a decline in investments of billions of euros and put tens of thousands of jobs in medium-sized companies and the craft sector at risk.

The German Federal Ministry for Economic Affairs, led by Katrin Reich, recently published a draft of the new amendments to the Renewable Energy Act, along with what is known as the "network package."

The drafts stipulate that owners of solar systems with an installed capacity not exceeding 25 kilowatts, which will be built starting in 2027, will receive a guaranteed purchase tariff for a period not exceeding 36 months.

After this transitional period ends, owners of these systems will have to switch to direct marketing of electricity, i.e., selling electricity through a service provider on electricity exchanges, where prices fluctuate and are difficult to predict.

The managing director of the German Solar Industry Association, Carsten Körnig, said: "These plans are completely out of touch with reality. They keep households dependent on fossil fuels for longer and threaten tens of thousands of jobs in the solar industry."

The plans also stipulate reducing compensation for new solar and wind power plants built in areas already suffering from grid bottlenecks if these plants have to temporarily shut down to avoid overloading the grid.

The association also criticized this approach, considering that it will turn large parts of Germany into areas unsuitable for renewable energy projects.

For his part, Michael Kellner, the economic policy spokesperson for the Green Party, said that the "network package" excessively considers the interests of grid operators, granting them six years to address grid bottlenecks. He added: "This slows down expansion. Moreover, solar power generated on rooftops will face significant restrictions under this package. That is a mistake. We need this energy, especially to run air conditioning systems."

Since 2000, the Renewable Energy Act has supported the expansion of electricity generation from renewable sources in Germany.

According to the energy sector, the share of wind, solar, biomass, and other renewable sources reached 58 percent of electricity generation in 2025, with a target of raising it to 80 percent by 2030.

Reich, a member of the Christian Democratic Union, affirmed her commitment to this goal, explaining that the reform of the law aims to reduce support costs.

The Ministry of Economic Affairs had prepared a first draft of the reform last January, but it faced objections from Finance Minister Lars Klingbeil and Environment Minister Carsten Schneider, both from the Social Democratic Party, due to concerns that the amendments could slow down the energy transition.