Navigating New Feed-In Rules for Solar Panel Owners: Breaking Down the Solar Peak Law
Operators of Solar Energy Devices
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Careful attention is now essential for private solar panel system owners in Germany. A series of fresh feed-in regulations, popularly known as the Solar Peak Law, has hit the grid. Here's a rundown of what's changed for solar energy enthusiasts.
Generating electricity with solar panels depends on various factors like weather and sunlight. During peak solar production hours in Germany, excessive power can temporarily overwhelm the power grid. To address this surge, the previous government implemented the Solar Peak Law, effective since late February 2025. The objective is to distribute solar power more evenly throughout the day and alleviate the midday "peak demand."
Embracing Technology for Smarter Consumption
Solar panels with a capacity of seven kW or more can freely feed power into the grid only if they're equipped with an intelligent metering system (iMSys) and a controllable device to manage output. Initially, these systems are subject to a 60% feed-in limit until the technology is installed. Even after installation, systems below seven kW remain capped permanently.
Seizing the Moment or Missing Opportunity? Up to the Solar Panel Owner
Even with an intelligent metering system, new systems of two kW or more will not receive feed-in compensation if the wholesale electricity price is negative. This situation occurs when large quantities of solar power flood the market and there are no buyers at the electricity exchange, which happened for approximately 500 hours out of approximately 1,600 sunny hours last year. The lost compensation will be compensated over 20 years, but with a 20-year delay.
This regulation aims to curb feed-in during times of high network load (e.g., midday) and encourage owners to consume or store the electricity and feed it in later when the sun has set.
Industry Concerns and Opportunities
Critics from the solar industry argue that the new limitations can result in considerable energy losses. In particular, the 60% feed-in limit without control technology causes concern. This cap applies even in the absence of local network overloads, with regulations primarily responding to market signals such as wholesale electricity prices, not the actual local network situation.
However, some companies in the industry see these newly regulated remuneration as a chance for consumers, especially those with smart energy systems. The CEO of Sonnen, which produces intelligent storage systems, remarks that the new law rewards smart energy management and a storage system is now crucial, as anyone without one will suffer financial losses.
According to calculations by the company, the abolition of remuneration through negative prices causes a more significant drop in income (25%) than the feed-in cap (expected 8% drop as per SFV). The CEO believes that this can be mitigated through intelligent "direct marketing" of surplus solar electricity, which can be sold when prices are optimal, not just when they're low or nearing zero.
The widespread adoption of smart meters, which Germany currently lags behind most European countries with a share of only 2%, is hindered by these new regulations. However, growing public pressure caused by the new law may speed up the process, with Germany expected to catch up by the end of 2026 when network operators must equip all new installations with smart meters.
Tips for Solar Panel Owners
Guide Seven steps to your own solar system solar panel system owners who start their system after February 25, 2025, should consider having an intelligent metering system (iMSys) with a controllable device installed or requested. This step will help bypass the feed-in limitation and secure remuneration even during peak solar productivity. Although it results in additional costs for solar panel owners, smart meters safeguard against permanent yield losses and offer flexibility for later direct marketing or smart consumption control.
Investing in a battery storage system can elevate self-consumption while reducing feed-in limitations. If it's intelligent and predictive, it can nearly offset the 60% rule. Households are advised to consult an installer to determine if a storage system is a feasible investment for them.
Smaller systems with a peak power of up to seven kW are currently unaffected by the obligation for control technology, but they are hit by the elimination of feed-in remuneration during periods of negative market prices. They also face the 60% restriction, even after installing an intelligent metering system.
Guide Important steps: Planning the installation of the solar panel system Owners of systems installed before the deadline have nothing to fear; existing remuneration schemes and technical conditions continue to apply. However, these systems will eventually receive an intelligent metering system and a controllable device starting from seven kW, and retrofitting with a storage system or energy management systems can be sensible, especially for optimizing self-consumption or integrating new consumption devices like wall boxes.
Ultimately, the impact of the solar cap law does not have to be as severe as many observers fear—provided that solar panel system owners harness the new opportunities offered by the regulations to offset restrictions. In fact, the law might even create new savings or revenue possibilities as flexibility becomes increasingly valuable, even for households.
- The implementation of the Solar Peak Law in Germany has mandated that solar panel systems with a capacity of seven kW or more must be equipped with an intelligent metering system (iMSys) and a controllable device to manage output, even during peak solar production hours.
- The solar industry, especially companies specializing in intelligent storage systems, view the new regulations as an opportunity for solar panel owners to embrace technology for smarter consumption, maximizing the potential revenue from their solar panel systems.
