Germany will lower the consumption tax on renewable energy

    According to Reuters, German Minister of Economy and Energy Peter Altmaier recently stated that the country will reduce the consumption tax on Solar System Kit For Home renewable energy. Starting from January 1, 2022, the consumption tax on renewable energy paid by German consumers will be reduced by 1/ 3.

    Peter Altmaier said in an interview that this is the largest reduction in the German renewable energy tax since its introduction. "This is only the first step. Our goal is to completely eliminate this tax, and it is expected that this process will be completed within three years." Peter Altmaier also revealed that the tax cuts will be offset by state subsidies and carbon price gains.

    It is understood that Germany previously introduced a renewable energy tax to support the development of the renewable energy industry, and to compensate for the difference between the market price and the feed-in tariff, as well as the market premium paid to power producers. In 2019, the German renewable energy tax is capped at 0.0641 euros per kilowatt-hour. In 2020, the cap is adjusted to 0.0676 euros. This year, the tax cap is 0.065 euros per kilowatt-hour.