Increased Support for Renewable Energy by 2029

Germany’s EEG Subsidy Forecast: Increased Support for Renewable Energy by 2029

Germany is set to increase its Renewable Energy Sources Act (EEG) subsidies to support the expansion of renewable energy installations, with a projected rise to EUR 23 billion by 2029. This forecast, provided by the Institute of Energy Economics at the University of Cologne, highlights significant growth from the EUR 17.3 billion provided in 2023. The federal budget funds these subsidies, following a 2022 decision to eliminate the renewables surcharge previously paid by consumers on their electricity bills.

Key Areas of Funding Allocation

The largest share of EEG support in 2025—around EUR 11.1 billion—is expected to go toward solar installations, demonstrating Germany’s strong focus on solar energy. Biomass and offshore wind power will receive EUR 3.5 billion and EUR 1.9 billion, respectively, while onshore wind energy will be allocated a smaller sum of approximately EUR 500 million.

Growth in Renewable Energy Capacity and Output

Germany’s renewable energy capacity is anticipated to double, reaching around 311 GW by the end of 2029, up from 151 GW in 2023. This expansion is primarily due to increased installations in both solar and wind energy sectors. Additionally, renewable energy output is expected to rise from 244 TWh in 2023 to 380 TWh by 2029, assuming average weather conditions. This growth supports Germany’s long-term strategy to reduce carbon emissions and strengthen energy independence.

The EEG report provides a trend scenario, viewed as the most probable forecast, along with upper and lower scenarios to account for possible variations in weather patterns and economic conditions.