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Changes to the German renewable energy levy

The draft act to ‘Alleviate the Cost Burden of the Renewable Energy Levy and to Pass on this Reduction to End-Consumers’ was passed by the lower house of the German parliament (Bundestag) on 15.3.2022.

Changes to the German renewable energy levy

Following the last reduction in the renewable energy levy from 6.5 cents per kWh to 3.72 cents per kWh, as of 1.1.2022, now, as of 1.7.2022 until the end of December 2022 it will be completely suspended. From 2023 onwards, the renewable energy levy will be permanently abolished or financed out of the Federal Government’s Energy and Climate Fund. The renewable energy levy [referred to in German as the EEG-Umlage = Erneuerbare-Energien-Gesetz, or Renewable Energy Sources Act] was originally intended to subsidise electricity generation from renewable energy sources.

Impact on end-consumers

Changes to the levy are a response to the sharp increases in energy prices and are supposed to provide relief for end-consumers. An amendment to the German Energy Industry Act will guarantee that the reduction is passed on to end-consumers. Therefore, a family of four, for example, can expect to save approx. €300 when compared with 2021.

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