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Germany adopts innovation tenders and tax incentives for building renovations

The federal government of Germany has approved the Innovation Tender Regulation authorizing innovations tender in the field of renewable energies. It will allow testing innovations in tender design, by applying a fixed market premium to renewable energy subsidies. No payment will be made in case of negative prices on the wholesale market and a surcharge limit will be introduced (in absence of competition, only 80% of the bids received are applied). Furthermore, as from 2020 the governement will launch auctions to solutions that will have to combine variable renewable energy (VRE), such as solar and wind, with non-variable renewable energy (NVRE), biomass and energy storage, to provide more balanced power supply to easy the power grid balancing.

Moreover, the German government has approved a bill to introduce tax incentives for energy-efficient building renovations in addition to the existing subsidies program. It will apply to individual measures to improve energy efficiency and for heating with renewable energies. Their cost will be deductible from future taxes at a rate of up to 20% over a period of three years from 2021.