Subsidies for renewable energy plants in Germany are anticipated to rise significantly, potentially reaching EUR 18.2 billion (USD 19.7 billion) in 2025 and climbing to almost EUR 23 billion by 2029, as indicated by a mid-term forecast from the Institute of Energy Economics at the University of Cologne.
This compares to the EUR 17.3 billion in subsidies provided in 2023 through Germany's Renewable Energy Sources Act (EEG). Since 2022, these subsidies are funded through the federal budget rather than consumer electricity bills, following the government's removal of the renewables surcharge.
In 2025, solar installations are projected to receive the largest share, approximately EUR 11.1 billion. Other allocations include EUR 3.5 billion for biomass energy, EUR 1.9 billion for offshore wind, and around EUR 500 million for onshore wind.
The forecasted increase to EUR 23 billion by 2029 aligns with the anticipated growth of subsidized renewable facilities and lower electricity prices. Germany's subsidized renewable energy capacity is expected to double to 311 GW by 2029, up from 151 GW at the end of 2023. Production from renewable facilities is estimated to reach about 380 TWh by 2029, up from 244 TWh in 2023.
These projections are based on a “trend scenario,” deemed the most probable. The report also provides an upper and lower scenario to account for potential weather variations.
