Anyone who intends to install PV anyway should not wait too long, advises the Association of Private Builders (VPB). Many new factors affect whether the investment is worthwhile overall.
When it comes to energy in the home, little will remain financially as it was. Many new rules will soon apply not only to replacing heating systems and other energy-efficiency measures, but also to solar power. It had been clear for some time that the German government would scale back support for photovoltaic (PV) generation. From 1 January 2027, the amount of electricity from private PV systems that can be fed into the grid will be capped at around 60 per cent. A further change is that anyone installing a new solar system with an output of less than 50 kilowatts (kWh) on their property from 2027 will receive a fixed payment from the grid operator for only three years. “After that, you have to sell the electricity directly yourself,” says funding adviser Burkhard Touché from the Association of Private Builders (VPB) network. “This will then generally be done through a direct marketer.”
No more transitional payments from 2030
For systems up to 10 kilowatt-peak (kWp denotes a PV system’s peak output), the feed-in tariff is 7.78 cents, and then 6.7 cents per kWh for systems up to 40 kWp. According to Touché, “the transitional payment is to be one cent below the previous regular payment per kWh.” For systems commissioned in 2028, it will apply only up to an output of 25 kilowatts, and in 2029 up to seven kilowatts. Under the German government’s current draft, no such transitional payment is planned from 2030.
“For those already considering adding PV to their home, it is interesting that systems installed by the end of 2026 are expected to be protected under existing rules,” the funding adviser explains. From 2030, the cap on electricity fed into the grid will in turn make it necessary to install battery storage and a smart meter for direct marketing. “That would cost no more than an additional 5,000 euros,” Touché says. “In theory, it would still be possible to make a profit of more than 5,000 euros over 20 years, corresponding to a payback period of approximately 15 years.”
Tenant electricity is expected to remain economical
It is not easy to say whether an investment is worthwhile for private builders. “PV systems and storage are expected to continue falling in price, electricity-price trends are uncertain, and the average lifespan of storage is between 10 and 20 years. These factors make reliable forecasts of cost-effectiveness difficult,” says Touché. “That also applies to the question of whether to quickly install a PV system before the new EEG comes into force in 2027.” However, using self-generated solar power as tenant electricity is likely to remain economical.
Make use of funding and advice
Funding beyond the feed-in tariff can improve the economics of rooftop systems. The KfW loan programme “Renewable Energy – Standard”, for example, has an interest rate of around 4.0 per cent (as at July 2026) and, according to Touché, “is not particularly attractive, but is easy to apply for through your bank.” He adds: “Some federal states also offer grants or low-interest loans for rooftop systems or storage, and individual local authorities have corresponding funding programmes as well.”
Through its network, the VPB offers support with clarifying and optimising financial and tax matters. Builders planning a PV system in the short or medium term should also obtain thorough information about the technical aspects in advance. They need to determine whether the roof can support an efficient solar power system and what capacity is required to supply, for example, an electric-vehicle charger or a heat pump. Specialists in the VPB network provide guidance and make potential risks transparent. Those interested can also seek advice from a consumer advice centre (“Solar suitability check”), a community solar advisory service, energy advisers, or local installers and specialist contractors.