Paragraph 19 EEG defines how renewable electricity gets paid. Operators can choose between a market premium for direct marketing, a tenant electricity surcharge or a feed-in tariff for local supply. The goal: stronger market integration of renewables and a more flexible, sustainable energy system.

What is paragraph 19 of the Renewable Energy Sources Act (EEG)?

Paragraph 19 of the German Renewable Energy Act (Erneuerbare-Energien-Gesetz, EEG), in its current version as of February 2025, sets out the rules for remuneration of renewable energy. Specifically, it governs entitlement to the market premium – a financial compensation granted to plant operators for selling renewable electricity on the power exchange through direct marketing – as well as entitlement to the tenant electricity surcharge.

These payments are only granted if no avoided grid charges under Section 18 of the Electricity Grid Charges Ordinance (StromNEV) have been claimed for the same electricity. Historically, operators of decentralized generation assets could receive such charges as compensation when their feed-in reduced the load on higher-level grid infrastructure by avoiding transmission through upstream grid levels. This system recognized the grid-relieving effect of distributed generation. Following recent reforms, however, avoided grid charges have been largely abolished for new installations and remain available only in transitional cases.

Purpose and goals of paragraph 19 EEG

§19 EEG is designed to allow operators of renewable energy installations actively participate in the electricity market. By using direct marketing, they can generate revenue independently through the power exchange. This shifts the focus away from fixed feed-in tariffs and encourages market-oriented behavior, supporting greater efficiency and flexibility of renewable energy within the grid.

Entitlements under paragraph 19 EEG

The paragraph defines the financial entitlements for electricity produced from renewable energy sources and mine gas. Operators can receive a market premium when selling electricity directly on the exchange or a tenant electricity surcharge when supplying power locally to end users. Electricity fed into the grid without direct marketing remains eligible for the feed-in tariff. These mechanisms provide operators with financial stability when participating in direct marketing. The payment amount is calculated based on the difference between the reference value and the market price achieved. Settlement is handled either by the grid operator or an appointed direct marketer.

Prerequisites for payment entitlement

To receive payments under paragraph 19 EEG, plant operators must meet certain conditions. The electricity must come from renewable energy sources or mine gas and be either marketed directly or supplied under a tenant electricity model. Operators cannot claim avoided grid charges under paragraph 18 of the Grid Charges Ordinance (StromNEV) for the same electricity, and the simultaneous use of both support mechanisms is not permitted. Payment entitlement applies only for calendar months in which electricity is actually fed into the grid or delivered.

How the market premium works

The market premium provides financial compensation for operators who sell renewable electricity on the power exchange. It replaces the traditional feed-in tariff and is paid in addition to the market price whenever the market price falls below the applicable reference value, ensuring the economic viability of plants under the direct marketing scheme.

The premium is calculated and paid monthly, with the grid operator handling settlement. Its value is not fixed but determined by the difference between the market price and the reference value for the specific technology. The Federal Network Agency (Bundesnetzagentur) publishes current and historical reference values on its website each month as part of the market premium overview.

Calculation of the market premium

The market premium is calculated based on the difference between the applicable reference value (anzulegender Wert) and the average market value of the electricity fed into the grid. If the market value on the power exchange is lower than the reference value, the market premium makes up the difference. This ensures that operators receive a reliable total revenue, independent of market price fluctuations. Calculations are carried out monthly, and payments are settled by the grid operator.

Advantages of the market premium

The key advantage of the market premium is that it allows operators to sell electricity directly on the power exchange while maintaining planning certainty. By linking revenues partly to exchange prices, it encourages market-oriented behavior while still providing financial security through built-in safeguards. The scheme also supports the integration of renewable energy into the power system, as operators are incentivized to align their feed-in with actual market demand. The market premium is financed through the EEG fund, which in turn is supported by the federal budget.

What is the tenant electricity surcharge?

The tenant electricity surcharge (Mieterstromzuschlag) is a support mechanism for solar power that is supplied directly to tenants within the same building rather than fed into the public grid. Its goal is to strengthen decentralized renewable energy generation and make rooftop PV systems on residential buildings more economically attractive. The surcharge is paid in addition to the market price and is designed to improve the financial viability of multi-tenant building projects.

Current support rates (August 1, 2025 – January 31, 2026)
The level of the tenant electricity surcharge depends on the installed capacity of the PV system:

•  Up to 10 kW: 2.56 ct/kWh
•  Up to 40 kW: 2.38 ct/kWh
•  Up to 1,000 kW: 1.60 ct/kWh

These rates apply to systems commissioned during this period.

Eligibility requirements under §19EEG

To be eligible for the tenant electricity surcharge, electricity must be generated by a PV system located on or attached to a residential building with a maximum capacity of 30 kilowatt peak (kWp). The electricity can only be supplied to end users within the same building. Feed-in to the public grid is not eligible. The 30 kWp limit, defined in paragraph 19(2) EEG, ensures that funding is targeted at small, decentralized systems directly used by tenants on-site.

Strict requirements also apply to metering and billing. Since the plant operator acts as the electricity supplier to tenants, accurate measurement and transparent billing of delivered electricity must be ensured. The tenant electricity surcharge is paid per kilowatt-hour, in addition to the agreed electricity price, through the grid operator. Another prerequisite is the timely registration of the system in the Market Master Data Register (Marktstammdatenregister) and notification to the responsible grid operator.

Eligibility criteria and exclusions

Paragraph 19 EEG specifies that payments are only granted if the legal and regulatory requirements are met. Electricity must be generated from renewable energy sources or mine gas, and either marketed directly or supplied under the tenant electricity model. These conditions form the basis for receiving the market premium or the tenant electricity surcharge. Operators must also comply with technical provisions, including reliable metering and transparent billing. Technical limits apply as well, such as the 30 kWp cap for tenant electricity systems and specific requirements for metering equipment and participation in direct marketing for the market premium. If these conditions are not met, support may be reduced or forfeited.

The provision also sets out exclusions to avoid double funding. Once operators receive payments under Paragraph 19 EEG, they cannot claim avoided grid charges under Paragraph 18 of the Grid Charges Ordinance (StromNEV) for the same electricity. Entitlement also lapses if the electricity does not meet EEG requirements or if required notifications and documentation are missing. These safeguards ensure that funding is properly targeted and prevent overlapping subsidies for the same electricity.

Expert insights and the future outlook of §19 EEG

In practice, implementing paragraph 19 EEG can be challenging for many operators, particularly due to the combination of direct marketing, the market premium and the tenant electricity surcharge, which require precise metering and a solid data foundation. It is therefore crucial to adopt digital solutions early on to automate data collection, accurately claim entitlements and reduce the risk of errors.

As the share of renewable electricity continues to grow, flexible marketing strategies become increasingly important to respond to fluctuating market prices. Digital platforms can play a key role as the interface between plant operators, grid operators and direct marketing. Carsten Schäfer, Senior Product Manager Innovation at gridX, explains:

“Without transparency and digital processes, meeting the complex requirements of paragraph 19 EEG is difficult. However, with access to accurate real-time data, operators can efficiently leverage their entitlements and respond flexibly to market conditions. A comprehensive energy management system (EMS) is ideally suited for this purpose.”