Germany will reduce renewable energy taxes from 2022

    German Minister of Economy and Energy Peter Altmaier said that from January 1, 2022, the renewable Small Home Solar System energy tax or the so-called EEG tax paid by German consumers for electricity consumption is expected to be reduced by one third.

    Peter Altmaier said in an interview that the sharp cuts will be offset by state subsidies.

    The Minister added that this will be the largest reduction in EEG taxation since its introduction, but this is only the first step towards the complete elimination of this goal, which is expected to be completed within three years.

    The EEG tax is designed to support the expansion of renewable energy in Germany, and to compensate for the difference between market prices and feed-in tariffs, as well as the market premium paid to electricity producers.

    The cap in 2021 is 0.065 Euro per kWh, compared with 0.0676 Euro in the previous year and 0.0641 Euro in 2019. The planned fee reduction should be funded by the proceeds of the introduction of carbon prices.