German Cabinet Approves New 2026 Energy Laws Reshaping Renewable Energy Support

On July 29, 2026, the German Cabinet approved significant reforms to the country’s energy legislation, particularly impacting the expansion of renewable energy sources and small-scale solar power systems. Central to these changes are amendments to the Renewable Energy Sources Act (EEG) and new network regulations aimed at better synchronizing renewable energy growth with the electricity grid.

Key elements include the cessation of guaranteed feed-in tariffs for smaller solar installations. These smaller PV systems will now be required to independently market the electricity they generate. However, a transitional arrangement allows new rooftop solar systems to receive a reduced feed-in tariff for up to three years. Furthermore, the maximum size of installations eligible for these payments will progressively decrease over time.

The Cabinet also modified the Redispatch provisions, which govern how grid operators manage network congestion by reducing output from wind or solar parks. Previously, operators could disconnect renewable plants without compensating the producers. The new rules impose limits on the annual production curtailed without compensation, reducing payments to operators but potentially affecting energy availability.

These reforms are designed to help lower the costs of grid management while supporting Germany’s ambitious target for renewable energy to supply at least 80% of the nation’s gross electricity consumption by 2030—a considerable jump from 58% in early 2026.

Despite these goals, experts have voiced concerns. The changes could slow down the deployment of renewable projects and increase uncertainty for investors, potentially endangering national climate objectives. Additionally, the policy shift signals an end to support for small photovoltaic systems, marking a notable policy pivot.

The legislative package was part of a broader series of developments in Germany on the same day, which also saw new ministerial appointments in Berlin and announcements of job cuts at automotive giant BMW.

Overall, the energy reforms set a new course for renewable energy expansion in Germany, balancing cost control with ambitious climate targets, though the true impacts on the energy transition remain to be seen.