SPD Warns Against Abolishing Solar Subsidies, Citing Threat to Energy Transition

The Social Democratic Party (SPD) in Schleswig-Holstein is sounding the alarm over potential cuts to solar energy subsidies, a move they believe will jeopardize Germany's crucial energy transition. The party is directly challenging Federal Minister of Economic Affairs Katherina Reiche (CDU), accusing her of undermining renewable energy goals and putting local businesses at risk. In a strong statement, SPD energy politician Marc Timmer asserted that Minister Reiche's proposed legislation, particularly concerning the "Netzpaket" and the leaked draft of the EEG (Renewable Energy Sources Act), reflects an energy policy dominated by fossil fuels. This, he argues, is detrimental to the growth of renewables, which are essential for Germany's climate targets and energy independence. The SPD fears these policy shifts could lead to job losses in Schleswig-Holstein, a region with a significant stake in the renewable energy sector. The core of the dispute lies in the proposed discontinuation of subsidies for solar installations under 25 kilowatts starting in 2027. Currently, these small-scale rooftop systems benefit from a feed-in tariff that guarantees a fixed payment for solar electricity fed into the grid for 20 years. The SPD contends that this support is vital for homeowners and families to achieve energy self-sufficiency and contribute to grid stability, especially in light of volatile global energy prices. Comparing Minister Reiche's approach to that of former Economics Minister Peter Altmaier, whose policies allegedly caused a downturn in the solar industry between 2012 and 2014, the SPD warns of a similar negative impact. They highlight that Schleswig-Holstein alone saw a record addition of 822 megawatts of photovoltaic capacity in 2025, demonstrating the sector's momentum. The party emphasizes that renewable energies are not only environmentally sound but also crucial for lowering electricity prices, creating local value, and reducing reliance on expensive fossil fuel imports. The SPD's stance underscores a fundamental debate within Germany about the pace and direction of the energy transition, with regional parties actively pushing back against federal policies they deem insufficient or counterproductive.

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Federal Minister of Economic Affairs Katherina Reiche (CDU) is endangering the energy transition with her legislative plans.