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Germany

Germany

Ecotax on renewables

Renewable energy sources are liable for Germany's new electricity "ecotax" of DEM 0.02/kWh. The law went into effect April 1. To compensate for the taxation of clean energy, the government plans to spend some DEM 300 million a year to promote wind energy, biogas, biomass, solar technology and small hydro power stations.

As expected, renewable energy sources are also liable for Germany's new electricity "ecotax" of DEM 0.02/kWh. The law was passed by both houses of parliament last month and went into effect April 1. Power from renewables will be tax free only if the generator is also the end consumer, or if the power is bought by end consumers connected to a grid or cable that carries renewables generated power exclusively. Electricity from generating plant with a capacity of less than 700 kW -- including individual wind turbines -- will not be taxed, either.

To compensate for the taxation of clean energy, the government plans to spend some DEM 300 million a year to promote wind energy, biogas, biomass, solar technology and small hydro power stations. The new law also makes substantial hikes to oil and gas taxes.

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