Weekly Solar Insights: Germany's Feed-In Rate Just Dropped, and 2027 Changes the Rules (Week of 3 August 2026)

August 3, 2026

This week has one genuinely big story, and it is worth ten minutes of your time if you live in Germany. The rest is steady, useful news from the UK and Italy. Here it is, without the jargon.

Germany: the feed-in rate stepped down on 1 August, and the bigger change lands in 2027

Two things happened, and they matter in very different ways.

First, the routine one. Germany's feed-in tariff drops by 1% every six months under section 49 of the Renewable Energy Act, and 1 August 2026 was one of those dates. For a new rooftop system up to 10 kWp, the rate is now 7.70 ct/kWh if you use some of the power yourself and feed the rest in, or 12.22 ct/kWh if you feed everything in^[1]. A small step, nothing dramatic.

Second, the one that actually matters. On 29 July 2026 the federal cabinet approved the draft EEG-Novelle 2027, which ends the permanent fixed feed-in tariff for new solar systems from 1 January 2027^[2]. In its place the draft sets out a feed-in value of 6.2 ct/kWh, a transitional payment of 5.2 ct/kWh for a maximum of 36 months, and a direct-marketing bonus of 1.5 ct/kWh for up to 48 months^[3]. New systems would also be permanently limited to a maximum of 50% feed-in unless you consume or store the power yourself.

Two things to hold in mind. This is a draft, not law: the Bundestag and Bundesrat are expected to decide in September 2026, and the European Commission still has to sign off. And if your system is connected to the grid before the end of 2026, you keep your existing fixed 20-year payment, unchanged^[4]. Nothing in the 2027 reform reaches back to systems already running.

What this means for you: if you were already thinking about solar in Germany, the calendar has quietly become part of the decision. Getting a system commissioned before 31 December 2026 locks in the current 20-year deal. Installer diaries fill up fast once a deadline is public, so if this is your year, it is worth starting the conversation now rather than in November. If it is not your year, that is fine too. Solar still works without a subsidy; it just leans harder on using your own power, which is where most of the value sits anyway.

UK: the summer cap, and where the real money is

Since 1 July the energy price cap sits at £1,663 a year for a typical direct-debit household^[5]. That headline needs one footnote: Ofgem updated its assumption about how much energy a typical home uses at the same moment, so on the old basis the same cap would read £1,862, up from £1,641. Either way the cap rose 13%, but the increase was very uneven. Electricity went up around 5%, while gas rose 24%^[5].

The next cap, covering October to December, is due to be published by 26 August 2026^[6]. Worth a diary note.

If you already have panels, though, the more interesting number is what you are paid for what you export. Smart Export Guarantee rates are set by suppliers rather than the regulator, so they vary enormously. At the moment the highest peak rate is Octopus Intelligent Flux at up to 32.17p/kWh, although it requires a home battery and an Octopus import tariff^[7]. Without a battery, Good Energy's Solar Savings Exclusive pays a flat 25p/kWh, and EDF Export Exclusive offers 24p/kWh fixed for twelve months^[7].

What this means for you: your import and export contracts are separate. You can move to a better export deal and keep your current electricity supplier exactly as it is. If you have not looked at your export rate in a year, that is probably the highest-value half hour available to you this month.

Italy: the 50% deduction is confirmed for 2026, and gets less generous after

Italy's renovation tax deduction stays at 50% for your main home through 2026^[8]. Second homes are already down to 36% this year, and from 2027 that rate falls again to 30%^[9].

The spending ceiling is €96,000 per property unit, and it covers battery storage as well as the panels themselves^[10], so a solar-plus-battery install can sit inside a single allowance. The deduction comes back to you in ten equal annual instalments, and the installation qualifies for reduced 10% VAT.

What this means for you: if the property is your primary residence, there is no cliff edge waiting at the end of 2026 for the 50% rate. If it is a second home, finishing the work before 31 December 2026 is worth a real six percentage points, which on a mid-sized system is not small money.

The one thing worth doing this week

Every one of these stories comes back to the same question: what would solar actually do on your roof, at your electricity price? Policy headlines are useful context, but they are not your numbers, and deadlines only matter once you know whether the answer is a yes for you at all.

Whenever you are ready, enter your address and trace your roof with the free Solar Roof Planner to see a realistic estimate of panels, system size, yearly output, savings and payback. It takes a couple of minutes, there is no sign-up, and it gives you something concrete to weigh all of this against.