Wind Energy Subsidies in Germany
Onshore wind in Germany is primarily supported through the EEG market premium. In addition, KfW loans, regional subsidy programmes and tax incentives are available. Overview of the key instruments in 2026.
EEG Market Premium (Main Instrument)
- Participation in auctions run by the Federal Network Agency (BNetzA, 4 rounds per year)
- Award = reference value (anzulegender Wert; subsidy period 20 years from commissioning)
- Cap value 2026: 7.35 ct/kWh
- Market premium = reference value minus monthly market value for wind
- Lapses after more than 4 consecutive hours of negative power prices
- More: EEG 2024 in detail (DE)
South Bonus
For sites in BW (Baden-Württemberg), BY (Bavaria), HE (Hesse), RP (Rhineland-Palatinate), SL (Saarland): +0.30 ct/kWh on top of the reference value. Intended to promote regional distribution of wind turbines across Germany.
Low-Wind Correction (Site Quality Factor)
Turbines at low-wind sites receive a correction factor that increases remuneration:
| Site Quality | Factor |
|---|---|
| 100 % (reference) | 1.00 |
| 90 % | 1.11 |
| 80 % | 1.29 |
| 70 % | 1.49 |
| 50 % | 2.07 (lower bound) |
Assessment at 5/10/15 years — actual yield is compared with the reference yield, and remuneration is adjusted retroactively.
KfW Funding Programmes
- KfW Programme 270 “Renewable Energies Standard”: promotional loan up to 50 million € per project, interest rate currently from approx. 3.5 % p.a., term up to 30 years
- KfW Programme 277 “Renewable Energies Premium”: repayment subsidies for particularly innovative projects
- State-level programmes: BB (Brandenburg), NDS (Lower Saxony), MV (Mecklenburg-Vorpommern) have their own programmes for community wind and cooperatives
Tax Incentives
- Investment deduction allowance (§ 7g EStG): 50 % of the investment can be claimed in advance for tax purposes
- Special depreciation (§ 7g para. 5 EStG): 20 % in the first 5 years
- Trade tax: 70 % goes to the host municipality — an important factor for local acceptance
Community Wind Subsidies (State Level)
Mecklenburg-Vorpommern (MV, since 2016), Brandenburg (BB, since 2024), North Rhine-Westphalia (NRW, from 2025) — mandatory citizen participation with 20 % equity share at preferential conditions. Facilitates bank financing and improves local acceptance.
Wind energy subsidies — subsidy pyramid, site quality correction and tax incentives
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Get in TouchFrequently Asked Questions
What happens after the 20-year EEG period expires?
Subsidy ends. Marketing options include PPA, spot market direct marketing, self-consumption, or a new EEG award (in the case of repowering).
Can repowering be combined with subsidies?
Yes — repowering follows the same EEG process as new build. Plus potential KfW funding. Details: Repowering and EEG (DE).
Are there still investment grants?
At federal level, no. Individual states (mainly in northern Germany) occasionally have programmes for community wind or cooperatives — temporary and budget-limited.