Re-engaging FIT system owners and accelerating the Energy Transition

Analytical Brief

This policy paper lays out an innovative concept for the German government to catalyse a new wave of investments in the Energy Transition, reduce the renewable energy surcharge (the EEG Umlage), and re-engage early investors in the Energy Transition.

Idea in a Nutshell:

  1. Early adopters of solar PV systems would be offered a discounted payout for their remaining FIT payments.
  2. The payout would be earmarked for energy transition-related investments.
  3. The Government would specify which new investments are eligible (storage, heat pumps, EVs, etc.)
  4. An entity like the KfW would manage the fund and issue the payouts to eligible customers.