Germany's Economic Minister Katherina Reiche has made headlines with her latest proposal to eliminate subsidies for small solar panel installations, a move that could significantly impact many private households. Earlier in the summer, Reiche openly expressed her view that new, smaller photovoltaic (PV) systems are already profitable and no longer require state support. This announcement has triggered outrage from not only the Green party but also her own coalition partners, the SPD. Despite this backlash, Reiche remains resolute and is moving forward with her plan.

The Ministry of Economic Affairs has drafted a reform proposal for the Renewable Energy Sources Act (EEG), which reveals intentions to end subsidies for solar installations with an output of up to 25 kilowatts. This size usually corresponds to installations on single-family or two-family homes, and the proposed changes could directly affect numerous households that rely on these subsidies to make solar energy financially viable. However, the ministry has refrained from providing detailed comments on the draft, citing that it is still under review.

This potential policy revision comes at a time when Germany is aiming to transition to renewable energy sources, raising questions about the balance between economic sustainability and public support for green energy initiatives. The government will need to navigate the reactions from its coalition partners and the public to ensure that its push for renewable energy continues to gain traction rather than encounter significant pushback from constituents who feel unsupported by such measures.