On Tuesday 19 December, the European Commission approved German plans to provide exemptions from and reductions to the surcharge for renewable energies in favour of certain auto-producers of electricity.
The German law on renewable energies (EEG) aims to support the production of electricity from renewable sources. A tax known as the "EEG surcharge" has therefore been imposed on consumers of electricity, but not on individuals self-producing their own renewable electricity. This exemption prompted an increase in auto-production, affecting the financial viability of the public support to renewables. The German authorities therefore decided to levy the EEG surcharge on the auto-production of electricity in 2014, with an exemption for existing auto-producers.
From 2018, the reductions and exemptions concerning this surcharge will again be available. Existing auto-producers will be taxed 20% of the EEG surcharge to update their facilities, whilst the full surcharge will be payable in the event of an extension. This measure was agreed to by the Commission as it will help to bring down electricity bills for consumers in a way that is viable for these auto-producers.
New auto-producers entering into service from August 2014 will also be given exemptions and reductions, but the Commission did not consider that this advantage constituted state aid, as it is in line with the logic of the EEG law.
The exemption granted to new small self-production plants not exceeding 10 kW was not considered state aid, as it does not reach the de minimum threshold. (Original version in French by Lucas Tripoteau)