Allegations of deception and fraud surround the new Solar Peak Act 2025 – the elimination of feed-in tariffs – Image: Xpert.Digital
Changes for PV operators: An overview of the new Solar Peak Act 2025
The new Solar Peak Act 2025: Implications for photovoltaic system operators in Germany
On February 25, 2025, the so-called "Solar Peak Act" came into force in Germany, bringing significant changes for operators of photovoltaic systems. This law, officially titled "Act Amending Energy Industry Law to Avoid Temporary Generation Surpluses," aims to improve grid stability and regulate overproduction. For operators of new PV systems, this means adapting to new remuneration structures and technical requirements. The impact is greater than many expected – analyses show that conventional, feed-in-the-grid PV systems could suffer an average reduction in remuneration of around 21 percent due to the new regulations.
The Great Illusion – Political Deception – The False Promise of Solar Energy – The Dark Side of Solar Subsidies – The End of Solar Dreams?
Suitable for:
Key innovations of the Solar Peak Act
Elimination of feed-in tariffs when electricity prices are negative
One of the most significant changes is the elimination of feed-in tariffs during periods of negative electricity prices on the exchange. New photovoltaic (PV) systems commissioned after February 25, 2025, will no longer receive compensation when prices on the electricity exchange are negative. Negative prices occur when the supply of electricity exceeds demand – a phenomenon that is particularly common on sunny days when numerous PV systems are producing electricity simultaneously. Forecasts predict that there were approximately 457 hours with negative electricity prices in 2024, representing about 5.2 percent of the year. This regulation aims to incentivize system operators to use or store their generated electricity themselves during such periods, rather than feeding it into the grid.
It is noteworthy that the hours without compensation are not completely lost. The amended law stipulates that these hours will be added to the end of the regular 20-year funding period. This means that plant operators can make up for the missed compensation hours at a later date, which partially compensates for the financial losses.
For the time being, smaller systems with an installed capacity of less than 2 kWp and systems between 2 and 100 kWp are exempt from this regulation, provided a smart meter has not yet been installed. This transitional arrangement gives operators of small systems in particular some breathing room while they adapt to the new regulations.
Power limitation and obligation to use smart metering systems
Another important change concerns the power limitation in the absence of control technology. Solar power plants connected to the grid from February 25, 2025, onwards will initially only be allowed to feed in 60 percent of their individual nominal power as long as no control box is installed. This limitation is intended to prevent grid overloads caused by uncontrolled feed-in peaks, which can occur particularly on sunny days.
The limit is automatically lifted as soon as a smart meter is installed in combination with a control box. This technology enables more precise control of the feed-in and helps to reduce grid congestion. It is important to know that the installation of this technology is not the responsibility of the plant operators, but rather of the metering point operators. While this relieves the operators of the technical implementation, it can lead to delays if the responsible metering point operators fail to keep pace with the rollout.
New opportunities for direct marketing and network control
The Solar Peak Act presents not only challenges but also new opportunities. It promotes the direct marketing of solar power and creates greater market flexibility. PV system operators can sell their electricity selectively on the exchange, although the obligation to market directly is eliminated and remains voluntary. This opens up new business models in the future, allowing system operators to profit from price fluctuations.
At the same time, the grid operator gains more control options. In the event of impending grid overloads or blackouts, the law authorizes grid operators to curtail PV systems in the affected area. This serves grid stability but also entails potential restrictions for system operators.
Another important change is the introduction of the 15-minute interval for electricity contracts on the day-ahead market. This finer temporal resolution allows for more precise adaptation to the market situation and can lead to optimized feed-in with intelligent control systems.
Suitable for:
Economic impact on plant operators
Losses with conventional plant designs
The economic consequences of the Solar Peak Act for PV system operators should not be underestimated. Analyses show that conventional, feed-in-the-feed PV systems could suffer average losses of around 21 percent due to the capping and suspension of remuneration during periods of negative electricity prices. This figure is based on an analysis of real consumption and feed-in data from 2024, including precise load data every 15 minutes and hours with negative electricity prices.
Particularly affected are installations primarily designed for feeding electricity into the public grid and which have little or no storage capacity. For these installations, the temporary zero feed-in tariff means direct financial losses, even if these hours can theoretically be made up at the end of the funding period.
Limiting output to 60 percent can also lead to reduced yields if no alternative use is found for the unused electricity. This can have a noticeable impact, especially on sunny days with high yields, when the system is operating near its maximum capacity.
Opportunities through self-consumption optimization and storage solutions
Despite the potential losses, the new law also offers opportunities to optimize plant operations. The elimination of feed-in tariffs during periods of negative electricity prices makes self-consumption or storage of self-generated electricity more attractive. In combination with an electricity storage system, even the 60 percent power limitation generally does not lead to a reduction in overall yield.
Storage systems have become even more valuable under the new law, as they can postpone feeding electricity into the grid from midday to a later time. They make it possible to store solar power when prices are negative and then use it later, either directly or feed it into the grid when prices are positive.
Intelligent control systems like “Heartbeat AI” can help to automatically and strategically feed electricity into the grid during lucrative time windows. These systems analyze consumption patterns and market prices and optimize feed-in accordingly. Such intelligent control can mitigate the negative effects of the peak solar power law and potentially even turn them into an economic advantage.
Suitable for:
Affected facilities and transitional arrangements
Scope of the law
An important aspect of the Solar Peak Act is its timeframe. The law applies exclusively to new installations commissioned after February 25, 2025. Existing installations are not affected by the new regulations, meaning that the previous feed-in tariffs and technical requirements continue to apply to them.
This clear timeframe creates legal certainty for existing plants and their operators. They do not have to retrofit their plants or expect financial losses. At the same time, however, this leads to unequal treatment between old and new plants, which could result in market distortions.
Exceptions and special regulations
The law contains several important exceptions and special regulations. Small systems with an installed capacity of less than 2 kWp are exempt from zero feed-in tariffs during periods of negative electricity prices. This primarily affects so-called balcony power plants or small plug-in solar systems, which are primarily designed for self-consumption anyway.
There is also a transitional arrangement for systems between 2 and 100 kWp: they are exempt from the zero feed-in tariff as long as a smart meter has not yet been installed. This regulation takes into account the fact that the rollout of smart metering systems in Germany has been slow so far and not all systems can be equipped with the necessary technology immediately.
Background and objectives of the Solar Peak Act
Challenges posed by the expansion of PV
The Solar Peak Act is a response to the challenges associated with the rapid expansion of photovoltaics in Germany. In 2024, photovoltaics accounted for almost 15 percent of net electricity generation in Germany. This share will continue to rise in the coming years, which could lead to problems without appropriate regulations.
The main challenge is that PV systems typically produce electricity at a high rate of simultaneity. On sunny days, they often produce more electricity than consumers demand, which can overload the public power grid. These surpluses lead to negative prices on the electricity exchange, meaning that producers effectively have to pay to get rid of their electricity.
Previously, operators of photovoltaic (PV) systems received a guaranteed feed-in tariff, regardless of market conditions. This led to continued feed-in even during periods of negative prices, exacerbating the problem of grid overload. The Solar Peak Act aims to break this cycle.
Integration of renewable energies into the electricity market
The overarching goal of the Solar Peak Act is to improve the integration of solar power into the grid and reduce grid congestion. It creates incentives for the grid- and market-friendly operation of renewable energy plants and promotes greater flexibility in the electricity market.
Instead of encouraging uncontrolled feed-in, the law aims to incentivize the grid-friendly feeding or consumption of self-generated electricity. Specifically, this means that plant operators will be motivated to feed their electricity into the grid when it is actually needed and to store or consume it themselves when there is a surplus.
By accelerating the installation of smart metering systems, the law also contributes to the digitalization of the energy transition. Smart meters are a key prerequisite for intelligent grid control and enable flexible adjustment of power feed-in to the current grid load.
Photovoltaics 2.0: Why storage and smart control are now crucial
The Solar Peak Act represents a significant turning point for the photovoltaic industry in Germany. It brings substantial changes for operators of new PV systems, presenting both challenges and opportunities. The zero feed-in tariff during periods of negative electricity prices and the power limitation without smart meters can lead to financial losses. At the same time, however, the law also creates incentives for more grid-friendly feed-in and promotes innovative solutions such as storage systems and intelligent control systems.
For potential investors in new PV systems, the law means they should rethink their system concepts and focus more on self-consumption and flexibility. A conventional system designed solely for grid feed-in without storage will be significantly less profitable under the new regulations. Instead, combined systems with storage and intelligent control will become increasingly important.
In the long term, the Solar Peak Act contributes to improving the integration of renewable energies into the electricity system and increasing grid stability. It is an important step towards a more flexible, digitized energy system that can meet the challenges of the energy transition. Despite the short-term negative impacts on some plant operators, it could prove to be a necessary and sensible measure in the long run to ensure the sustainable expansion of photovoltaics.
There is talk of deception and dizziness: the new Solarspitzen Act 2025 - Come on the feed -in tariff
The new Solar Peak Act 2025: Implications for photovoltaic system operators in Germany
On February 25, 2025, the so-called "Solar Peak Act" came into force in Germany, bringing significant changes for operators of photovoltaic systems. This law, officially titled "Act Amending Energy Industry Law to Avoid Temporary Generation Surpluses," aims to improve grid stability and regulate overproduction. For operators of new PV systems, this means adapting to new remuneration structures and technical requirements. The impact is greater than many expected – analyses show that conventional, feed-in-the-grid PV systems could suffer an average reduction in remuneration of around 21 percent due to the new regulations.
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The solar system planner for the most common applications: Plan the solar system online here - Image: Xpert.Digital
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Key innovations of the Solar Peak Act - background analysis
Elimination of the feesEinspeisevergütung in case of negative electricity prices
One of the most significant changes is the elimination of feed-in tariffs during periods of negative electricity prices on the exchange. New photovoltaic (PV) systems commissioned after February 25, 2025, will no longer receive compensation when prices on the electricity exchange are negative. Negative prices occur when the supply of electricity exceeds demand – a phenomenon that is particularly common on sunny days when numerous PV systems are producing electricity simultaneously. Forecasts predict that there were approximately 457 hours with negative electricity prices in 2024, representing about 5.2 percent of the year. This regulation aims to incentivize system operators to use or store their generated electricity themselves during such periods, rather than feeding it into the grid.
It is noteworthy that the hours without compensation are not completely lost. The amended law stipulates that these hours will be added to the end of the regular 20-year funding period. This means that plant operators can make up for the missed compensation hours at a later date, which partially compensates for the financial losses.
For the time being, smaller systems with an installed capacity of less than 2 kWp and systems between 2 and 100 kWp are exempt from this regulation, provided a smart meter has not yet been installed. This transitional arrangement gives operators of small systems in particular some breathing room while they adapt to the new regulations.
Power limitation and obligation to use smart metering systems
Another important change concerns the power limitation in the absence of control technology. Solar power plants connected to the grid from February 25, 2025, onwards will initially only be allowed to feed in 60 percent of their individual nominal power as long as no control box is installed. This limitation is intended to prevent grid overloads caused by uncontrolled feed-in peaks, which can occur particularly on sunny days.
The limit is automatically lifted as soon as a smart meter is installed in combination with a control box. This technology enables more precise control of the feed-in and helps to reduce grid congestion. It is important to know that the installation of this technology is not the responsibility of the plant operators, but rather of the metering point operators. While this relieves the operators of the technical implementation, it can lead to delays if the responsible metering point operators fail to keep pace with the rollout.
New opportunities for direct marketing and network control
The Solar Peak Act presents not only challenges but also new opportunities. It promotes the direct marketing of solar power and creates greater market flexibility. PV system operators can sell their electricity selectively on the exchange, although the obligation to market directly is eliminated and remains voluntary. This opens up new business models in the future, allowing system operators to profit from price fluctuations.
At the same time, the grid operator gains more control options. In the event of impending grid overloads or blackouts, the law authorizes grid operators to curtail PV systems in the affected area. This serves grid stability but also entails potential restrictions for system operators.
Another important change is the introduction of the 15-minute interval for electricity contracts on the day-ahead market. This finer temporal resolution allows for more precise adaptation to the market situation and can lead to optimized feed-in with intelligent control systems.
Suitable for:
Economic impact on plant operators
Losses with conventional plant designs
The economic consequences of the Solar Peak Act for PV system operators should not be underestimated. Analyses show that conventional, feed-in-the-feed PV systems could suffer average losses of around 21 percent due to the capping and suspension of remuneration during periods of negative electricity prices. This figure is based on an analysis of real consumption and feed-in data from 2024, including precise load data every 15 minutes and hours with negative electricity prices.
Particularly affected are installations primarily designed for feeding electricity into the public grid and which have little or no storage capacity. For these installations, the temporary zero feed-in tariff means direct financial losses, even if these hours can theoretically be made up at the end of the funding period.
Limiting output to 60 percent can also lead to reduced yields if no alternative use is found for the unused electricity. This can have a noticeable impact, especially on sunny days with high yields, when the system is operating near its maximum capacity.
Opportunities through self-consumption optimization and storage solutions
Despite the potential losses, the new law also offers opportunities to optimize plant operations. The elimination of feed-in tariffs during periods of negative electricity prices makes self-consumption or storage of self-generated electricity more attractive. In combination with an electricity storage system, even the 60 percent power limitation generally does not lead to a reduction in overall yield.
Storage systems have become even more valuable under the new law, as they can postpone feeding electricity into the grid from midday to a later time. They make it possible to store solar power when prices are negative and then use it later, either directly or feed it into the grid when prices are positive.
Intelligent control systems like “Heartbeat AI” can help to automatically and strategically feed electricity into the grid during lucrative time windows. These systems analyze consumption patterns and market prices and optimize feed-in accordingly. Such intelligent control can mitigate the negative effects of the peak solar power law and potentially even turn them into an economic advantage.
Affected facilities and transitional arrangements
Scope of the law
An important aspect of the Solar Peak Act is its timeframe. The law applies exclusively to new installations commissioned after February 25, 2025. Existing installations are not affected by the new regulations, meaning that the previous feed-in tariffs and technical requirements continue to apply to them.
This clear timeframe creates legal certainty for existing plants and their operators. They do not have to retrofit their plants or expect financial losses. At the same time, however, this leads to unequal treatment between old and new plants, which could result in market distortions.
Exceptions and special regulations
The law contains several important exceptions and special regulations. Small systems with an installed capacity of less than 2 kWp are exempt from zero feed-in tariffs during periods of negative electricity prices. This primarily affects so-called balcony power plants or small plug-in solar systems, which are primarily designed for self-consumption anyway.
There is also a transitional arrangement for systems between 2 and 100 kWp: they are exempt from the zero feed-in tariff as long as a smart meter has not yet been installed. This regulation takes into account the fact that the rollout of smart metering systems in Germany has been slow so far and not all systems can be equipped with the necessary technology immediately.
Background and objectives of the Solar Peak Act
Challenges posed by the expansion of PV
The Solar Peak Act is a response to the challenges associated with the rapid expansion of photovoltaics in Germany. In 2024, photovoltaics accounted for almost 15 percent of net electricity generation in Germany. This share will continue to rise in the coming years, which could lead to problems without appropriate regulations.
The main challenge is that PV systems typically produce electricity at a high rate of simultaneity. On sunny days, they often produce more electricity than consumers demand, which can overload the public power grid. These surpluses lead to negative prices on the electricity exchange, meaning that producers effectively have to pay to get rid of their electricity.
Previously, operators of photovoltaic (PV) systems received a guaranteed feed-in tariff, regardless of market conditions. This led to continued feed-in even during periods of negative prices, exacerbating the problem of grid overload. The Solar Peak Act aims to break this cycle.
Integration of renewable energies into the electricity market
The overarching goal of the Solar Peak Act is to improve the integration of solar power into the grid and reduce grid congestion. It creates incentives for the grid- and market-friendly operation of renewable energy plants and promotes greater flexibility in the electricity market.
Instead of encouraging uncontrolled feed-in, the law aims to incentivize the grid-friendly feeding or consumption of self-generated electricity. Specifically, this means that plant operators will be motivated to feed their electricity into the grid when it is actually needed and to store or consume it themselves when there is a surplus.
By accelerating the installation of smart metering systems, the law also contributes to the digitalization of the energy transition. Smart meters are a key prerequisite for intelligent grid control and enable flexible adjustment of power feed-in to the current grid load.
Self-consumption instead of feed-in: Why PV operators need to change their strategies
The Solar Peak Act represents a significant turning point for the photovoltaic industry in Germany. It brings substantial changes for operators of new PV systems, presenting both challenges and opportunities. The zero feed-in tariff during periods of negative electricity prices and the power limitation without smart meters can lead to financial losses. At the same time, however, the law also creates incentives for more grid-friendly feed-in and promotes innovative solutions such as storage systems and intelligent control systems.
For potential investors in new PV systems, the law means they should rethink their system concepts and focus more on self-consumption and flexibility. A conventional system designed solely for grid feed-in without storage will be significantly less profitable under the new regulations. Instead, combined systems with storage and intelligent control will become increasingly important.
In the long term, the Solar Peak Act contributes to improving the integration of renewable energies into the electricity system and increasing grid stability. It is an important step towards a more flexible, digitized energy system that can meet the challenges of the energy transition. Despite the short-term negative impacts on some plant operators, it could prove to be a necessary and sensible measure in the long run to ensure the sustainable expansion of photovoltaics.
The criticism of the new Solar Peak Act 2025 as "deception and fraud" is based on several key points:
1. Elimination of feed-in tariffs when electricity prices are negative
Operators of new photovoltaic systems no longer receive compensation when the electricity exchange shows negative prices. This means direct financial losses for them at certain times, while grid operators and large energy companies continue to profit from the low prices. Critics see this as disadvantaging small PV operators in favor of large energy companies.
2. Hidden subsidization of major players
The provision to "postpone" the lost remuneration periods to the end of the 20-year funding period may appear at first glance to be compensation. In reality, however, it represents a delay in payments that is economically disadvantageous. Moreover, future legislative changes could further complicate this catch-up process.
3. Power limitation without a smart meter
Plants without smart meters are only permitted to feed 60% of their capacity into the grid. Although smart meters must be installed by metering point operators, there is no guarantee of timely implementation. This could lead to ongoing revenue losses – a disadvantage not caused by the plant operators.
4. Forced self-consumption and expensive storage solutions
The lack of feed-in tariffs during periods of negative electricity prices effectively forces operators to invest in storage solutions to use their generated electricity independently. However, storage systems are expensive and often not economically viable, especially for smaller operators.
5. Market distortion and unequal treatment
Existing installations continue to benefit from the old feed-in tariffs, while new installations suffer under the restrictive conditions of the law. This leads to unequal treatment within the industry and can make the construction of new PV systems unattractive.
Solar Peak Act 2025: Will it slow down the energy transition?
Critics view the 2025 Solar Peak Act as a hidden measure to throttle small photovoltaic systems and promote large energy companies. While the law is officially intended to improve grid stability, in practice it leads to financial disadvantages for many PV operators and hinders the decentralized expansion of renewable energies.
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