Planning a PV System in 2026: What You Need to Know
The year 2026 marks a turning point for photovoltaics in Germany. On the one hand, the geopolitical situation is driving energy prices upward; on the other, the German federal government is planning a radical reform of solar subsidies. If you're planning a PV system, you should be aware of the latest developments — because 2026 may be the last year with a guaranteed feed-in tariff for small rooftop installations.
Current EEG Feed-in Tariff 2026
The feed-in tariff is locked in for 20 years from the date of commissioning. If you commission your system in 2026, you secure the current rates through 2046.
Tariff Rates February – July 2026
| System Size | Partial Feed-in | Full Feed-in |
|---|---|---|
| up to 10 kWp | 7.78 ct/kWh | 12.34 ct/kWh |
| 10–40 kWp | 6.73 ct/kWh | 10.35 ct/kWh |
| 40–100 kWp | 5.50 ct/kWh | 10.35 ct/kWh |
From August 2026, the rates will decrease by a further 1% (semi-annual degression). For a typical single-family home system of 10 kWp, that means 7.71 ct/kWh for partial feed-in.
Important: Since 2025, the feed-in tariff is suspended during periods of negative wholesale electricity prices. The 20-year tariff period is extended accordingly.
For most homeowners, partial feed-in (self-consumption plus feeding in the surplus) is significantly more profitable than full feed-in — more on that below.
EEG Reform: Is the End of Solar Subsidies Coming in 2027?
A draft leaked in February 2026 from the Federal Ministry for Economic Affairs under Minister Katherina Reiche (CDU) has alarmed the solar industry. The key planned changes:
What Is Set to Change from 2027
- Systems up to 25 kWp: The fixed feed-in tariff will be completely abolished. Instead, surplus electricity may initially be fed into the grid without compensation — a so-called "subsidy-free grid operator offtake."
- Phase-out model: This subsidy-free feed-in is to be gradually discontinued — by 2028 for systems up to 25 kW, by 2029 only for systems up to 10 kW, and then eliminated entirely.
- Systems 25–100 kWp: The feed-in bonus will be dropped, replaced by a flat rate of 6.2 ct/kWh with monthly 1% degression and a requirement for direct marketing.
- A 50% feed-in cap for smaller systems is under discussion.
What Does This Mean in Practice?
If you install a system in 2026, you lock in the current feed-in tariff for 20 years — regardless of what is decided in 2027. Grandfathering protection is planned.
If you wait until 2027 or later, a low self-consumption rate could put you at a significant disadvantage. Industry associations warn that the payback period could extend from roughly 10 to up to 19 years.
The Ministry's rationale: Private PV systems are economically viable even without subsidies due to high self-consumption rates. While this is true in many cases, it does not apply to all. Households with low daytime consumption or no battery storage would be particularly affected.
Energy Crisis 2026: The Iran Conflict and Rising Electricity Prices
Since late February 2026, an armed conflict involving Iran has been underway. The partial blockade of the Strait of Hormuz is having a direct impact on global energy markets:
- Gas and oil exports from Qatar and the UAE are restricted, driving wholesale prices upward.
- Gas-fired power plants are the marginal price-setters on the German electricity market — rising gas prices automatically mean rising electricity prices.
- New-customer tariffs for electricity have increased from 24.9 to 27.6 ct/kWh since the conflict began.
- Inflation in Germany is estimated at 2.6% for 2026 — higher than previously forecast.
According to the BDEW (German Association of Energy and Water Industries), Germany's direct gas supply is not immediately at risk (main supplier Norway, plus LNG imports and well-filled storage facilities). However, consumers are already feeling the indirect price effects.
Current Electricity Prices in Germany
| Tariff Type | Price per kWh |
|---|---|
| Standard supply (existing customers) | approx. 42.8 ct/kWh |
| Average across all tariffs | approx. 37.2 ct/kWh |
| New-customer tariff (March 2026) | approx. 25–28 ct/kWh |
| Cheapest tariffs | from approx. 23 ct/kWh |
At 37.2 ct/kWh, Germany has the highest electricity price of all G20 nations. For comparison: during the energy crisis of 2023, prices exceeded 45 ct/kWh.
Why a PV System Is Especially Worthwhile in 2026
The math is simple: every kilowatt-hour you consume yourself instead of buying from the grid saves you 25–37 ct/kWh. The feed-in tariff, by contrast, only pays 7.78 ct/kWh. The economic leverage clearly lies in self-consumption.
Example Calculation: Typical Single-Family Home
| Parameter | Value |
|---|---|
| System size | 10 kWp |
| Annual yield | approx. 9,500 kWh |
| Self-consumption rate (without storage) | approx. 30% = 2,850 kWh |
| Self-consumption rate (with 10 kWh storage) | approx. 65% = 6,175 kWh |
| Electricity price (new-customer tariff) | 28 ct/kWh |
| Feed-in tariff | 7.78 ct/kWh |
Without storage: - Savings from self-consumption: 2,850 x 0.28 € = 798 €/year - Feed-in revenue: 6,650 x 0.0778 € = 517 €/year - Total: approx. 1,315 €/year
With 10 kWh storage: - Savings from self-consumption: 6,175 x 0.28 € = 1,729 €/year - Feed-in revenue: 3,325 x 0.0778 € = 259 €/year - Total: approx. 1,988 €/year
With investment costs of roughly 15,000–18,000 € (including storage), the payback period is 8–10 years — and after that, you produce virtually free electricity for another 10–15 years.
5 Reasons Not to Wait Any Longer in 2026
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Lock in grandfathering protection: If you install in 2026, you receive a guaranteed feed-in tariff for 20 years — no matter what happens politically in 2027.
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Rising electricity prices: The Iran conflict and the structural reliance on gas-fired power plants continue to push electricity prices higher. Every self-generated kWh is a hedge against that.
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Falling module prices: Solar module prices dropped sharply in 2024/2025 and are at historically low levels. Whether this will last is uncertain.
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Tax exemptions: Since 2023, PV systems up to 30 kWp have been exempt from income tax and VAT (0% VAT on modules, inverters, and installation).
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Energy independence: A PV system with storage makes you more resilient to price shocks on the energy market — a lesson learned from the crises of recent years.
Plan Your PV System Now
With our free 3D Roof Planner, you can configure your PV system yourself in just a few minutes:
- Measure your roof and place modules optimally
- Calculate yield based on real weather data for your location
- Simulate profitability using current electricity prices and feed-in tariffs
- Get quotes from installers in your area
As of March 2026. The EEG reform is currently going through the legislative process and may still change. Feed-in tariff rates per the EEG degression schedule. Electricity prices based on current market data (sources: Bundesnetzagentur, Verivox, CHECK24). This article does not constitute legal or investment advice.