FACTBOX-Changes to German energy law due for 2021

This has quelled fears of unnecessary closures. SOLAR POWER There will be more favourable tax rules for apartment dwellers participating in smaller-scale solar projects. The law increases the size of rooftop installations that exempt operators from paying charges to support the expansion of renewable energy that apply to all households receiving power from grids.

Germany's parliament is due to pass new renewable power rules (EEG) this week to help the country meet its goal of producing 65% of its electricity from carbon-free sources by 2030. The new law cuts financial burdens on consumers and gives electricity generators some incentives to build new capacity, but more detailed specifications will be required next year.

Green lobbies said the legislation did not go far enough. Here are details of the law that kicks in on Jan. 1, 2021.

WIND POWER Local communities will be incentivised to support new onshore wind projects either by obtaining a share of their revenue or having their power bills reduced.

Existing turbines whose 20-year rolling subsidy schemes are coming to an end will receive some follow-on support payments and can be upgraded for further operation. This has quelled fears of unnecessary closures.

SOLAR POWER There will be more favourable tax rules for apartment dwellers participating in smaller-scale solar projects.

The law increases the size of rooftop installations that exempt operators from paying charges to support the expansion of renewable energy that apply to all households receiving power from grids. Smart meters will not become mandatory for small operators, avoiding rising costs.

Prospective operators of large-scale solar plants on commercial buildings will have to compete in auctions for permission to build, which is a drawback. But the size above which the auctions become mandatory was raised from earlier drafts. The measures are aimed at driving up capacity, and at spurring electric car charging activity at home and purchases of electric heat pumps to replace gas and oil in heating.

OTHER ENERGY SOURCES The law will also promote biomass and geothermal energy.

EXPANSION TARGETS Capacity targets will be raised. Detailed figures will be worked out in the first quarter of 2021.

Technology costs are falling, allowing new capacity to be run on the basis of market prices.