Subsidy on solar electricity in Germany

In Germany, solar electricity is subsidised under the Act on Renewable Energy (Erneuerbare Energie Gesetz, EEG). Under this act, energy companies are obliged to buy solar electricity from private individuals and companies at a price much higher than the price for which they can resell the energy to third parties.

The difference between purchase price and selling price is
divided among all customers, except approximately 400 energy-intensive companies. In 2006, solar electricity generation was subsidised for about 1 billion euro (source: German Ministry for the Environment).