Navigating Solar Power Grid Overload: What Früher Solareigner Need to Know
Individuals who possess and operate solar power systems
Got solar panels at home? Brace yourself for updated feed-in regulations. This article explores the ins and outs of the Solar Peak Law and its implications for owners of photovoltaic (PV) systems.
Power Grid Conundrum
Generating electricity through private solar systems is influenced by various factors, including the weather and the sun's position. Germany experiences a significant volume of electricity generation at noon, temporarily straining the power grid. To rectify this, the previous federal government enacted the Solar Peak Law, effective February 2025, aimed at distributing solar power more evenly throughout the day, thereby eliminating midday "power peaks."
At its core, the law stating that from Feb 2025, newly installed PV systems with a capacity of seven kilowatt-peak (kWp) or more can feed unlimited electricity only if they come equipped with an intelligent metering system (iMSys) and a system control device. Until these components are installed, feed-in capacity is initially limited to 60 percent of the rated power. Systems under seven kWp remain permanently limited, even after installing an iMSys.
Reducing Overloads
Even with an iMSys, new systems of two kWp or more will not receive feed-in compensation if the wholesale electricity price is negative. This happens when too much solar power is produced, and there are no buyers at the electricity exchange, occurring for approximately 500 hours out of approximately 1,600 sunny hours last year. Lost compensation will be compensated at the older compensation rate over a period of 20 years—a two-decade time delay.
This regulation aims to limit feed-in during periods of high network load (e.g., midday) and motivate owners to consume or store the electricity themselves and feed it in later, after the sun has set.
Industry Criticism
The German Solar Energy Association (SFV) has criticized the new regulation. Professor Dr. Frank Hergert, Renewable Energy Technology expert at the University of Koblenz and a SFV board member, states that the 60 percent feed-in limitation without control technology could result in significant energy losses. Hergert also criticizes the limitation's application even when there is no local network overload, as the regulation primarily focuses on market signals like wholesale electricity prices rather than the actual local network situation.
Hergert contends that operators of smaller PV systems without smart meter infrastructure will be economically disadvantaged in the future. While self-consumption and battery storage can offset losses, these investments may not be practical or profitable for all households. The SFV sees the new law as a potential risk to the decentralized expansion of solar energy, which has been key to the energy transition thus far. Instead of encouraging simple PV systems, the law makes it more difficult for new operators to enter the market due to technical requirements and economic uncertainties.
Opportunities for Consumers
On the flip side, some industry companies view the newly regulated remuneration as a chance for consumers. Oliver Koch, CEO of Sonnen—an Allgäu-based company producing intelligent storage systems, claims, "The new law rewards not just the quantity of electricity fed into the grid but the right time. For households, this means: Intelligent energy management and a storage system are now essential, as those without it will lose money."
According to Sonnen's calculations, the abolition of remuneration through negative prices results in a 25% drop in revenue, which is significantly more painful than the 8% drop caused by the feed-in cap, as calculated by the SFV. Koch believes that the first can be mitigated through intelligent "direct marketing" of surplus PV electricity, which can be sold when prices are optimal, rather than when they drop into the negative. Additionally, the storage system can be charged based on forecasts, including weather predictions. This means that the storage system does not start charging in the morning, but only when the 60% threshold is exceeded.
Smart Meters and Direct Marketing
However, the installation of a smart meter is a prerequisite for direct marketing. Germany trails most European countries in smart meter adoption, with a share of only two percent. There is hope that the new law could spur growth in smart meter adoption, thanks to increasing public pressure. At the beginning of the year, the Federal Network Agency issued warnings to around 700 companies for being slow in introducing intelligent measuring systems—all new installations must be equipped with them by the end of 2026.
Tips for PV System Owners
PV system owners should consider installing an iMSys with a controllable device to avoid feed-in power limitations and secure remuneration at full solar yield, despite additional costs for system owners. A battery storage system can help boost self-consumption and minimize yield losses due to feed-in restrictions. However, households should consult with an installer to determine if a storage system is economically viable for them.
Systems with peak power of up to seven kW are currently unaffected by the obligation for control technology. They also face the elimination of feed-in remuneration during times of negative market prices, which can't be restored even after installing an iMSys.
For existing systems installed before the deadline, no changes are expected regarding remuneration schemes and technical conditions. However, these systems will eventually receive an iMSys and control device, especially if the peak power is seven kW or more. Additionally, retrofitting with a storage system or energy management systems can be beneficial for optimizing self-consumption or integrating new consumption devices like wallboxes.
Under the Solar Peak Law, the solar cap shouldn't have a significantly negative impact—provided that PV system owners adopt the new opportunities offered by the law to offset the restrictions. In fact, the law could even offer new savings or income opportunities, as flexibility becomes increasingly valuable—even for households.
- The Solar Peak Law, effective from February 2025, aims to address the power grid overload by requiring newly installed photovoltaic (PV) systems with a capacity of seven kilowatt-peak (kWp) or more to use an intelligent metering system (iMSys) and a system control device for unlimited feed-in of electricity.
- The law also stipulates that systems under seven kWp remain permanently limited, even after installing an iMSys.
- During periods of high network load, such as midday, the new regulation will limit feed-in and motivate PV system owners to consume or store the electricity themselves and feed it in later.
- Notably, new systems of two kWp or more will not receive feed-in compensation if the wholesale electricity price is negative, which happens when too much solar power is produced and there are no buyers at the electricity exchange.
- Germany's Solar Energy Association (SFV) has criticized the new regulation due to concerns about energy losses and economic disadvantages for operators of smaller PV systems without smart meter infrastructure.
- Companies like Sonnen, however, view the newly regulated remuneration as an opportunity for consumers, with CEO Oliver Koch stating that households must invest in intelligent energy management systems and storage systems to maximize returns.
