IN Brief:
- The 1 December first-segment auction offers 2,226,308kW of support capacity.
- Bids cannot exceed 5.53 euro cents/kWh, but actual successful prices may be lower.
- Pending EU state aid decisions could change rules for certain special solar projects.
Germany’s Federal Network Agency has invited bids for 2,226,308kW of solar photovoltaic capacity in its first-segment auction closing on 1 December 2026. The regulator has set a maximum bid value of 5.53 euro cents per kilowatt hour under the Renewable Energy Sources Act. The first-segment mechanism covers eligible ground mounted solar projects and related qualifying installations; awards will depend on submitted bids meeting the tender rules rather than simply on developers proposing construction.
The December allocation is equivalent to approximately 2.23GW, but that figure describes the capacity open to tender rather than new generation already contracted or built. Successful bidders will receive awards determined by the auction rules; the closing date does not indicate when the plants will enter service. Construction, network connection and other project requirements remain separate tasks after any award has been made.
The 5.53-cent ceiling is calculated from the highest successful bid in each of three earlier auctions, which were 5.30 euro cents/kWh in December 2025, 5.10 cents in March 2026 and 4.97 cents in July. The regulator adds eight per cent to their average, subject to a separate statutory maximum of 5.9 cents. A bid above the published ceiling cannot receive an award, even if its underlying project meets technical and site eligibility requirements.
The ceiling should not be mistaken for the price that every supported project will receive. The competitive allocation process ranks compliant bids under the governing rules, and a bidder must assess its own required remuneration against expected output, construction costs, financing conditions and operational risks. The cost per installed megawatt alone does not establish the unit price of energy delivered over the life of a project.
Recent results indicate the competitive pressure that applicants may face. The regulator’s July 2026 solar auction attracted 401 bids covering approximately 3,170MW against an offered 2,135MW. It awarded 261 bids after applying its checks. Winning values ranged from 4.38 to 4.97 euro cents/kWh, with a volume weighted average of 4.79 cents. Those figures describe the previous tender, not a forecast that December prices will fall within the same range.
The December allocation is lower than the simple 3.3GW share obtained by dividing the statutory annual 9.9GW programme equally across three first-segment auctions. The Renewable Energy Sources Act requires adjustments to the announced volume under specified provisions, including the calculation of relevant quantities. The regulator states that it did not apply one particular discretionary reduction mechanism to this December tender.
The auction notice also details unresolved state aid approvals for provisions introduced by Germany’s Solar Package I. The affected rules include additional remuneration treatment for some elevated agricultural photovoltaic installations and peatland solar projects, the treatment of maximum bid sizes and a proposed priority award mechanism for certain special solar installations. Developers cannot rely on the newer terms applying unless the necessary European Commission approval is obtained before the specified cut-off.
Where the required approval has not been granted by 30 November 2026, the agency says the earlier applicable rules must continue to govern the affected matters. Its notice also provides for the general award process to apply instead of the proposed special priority procedure. The legal contingency is relevant to project eligibility and potential support, but it does not suspend the published 1 December tender deadline or turn the 2.23GW allocation into guaranteed generating capacity.
The notice additionally addresses the eligibility of ground mounted projects proposed on agricultural land. It refers to an 80GW statutory threshold associated with registered installations commissioned from January 2023. The measured installed capacity at the relevant 31 August 2026 registration date was 21.7GW. That comparison is part of the legal eligibility framework, not evidence that every parcel of agricultural land is suitable for solar generation.
Eligible plant designs must still satisfy planning, land use and grid connection requirements. Solar panels produce direct current, which inverters convert to alternating current suitable for network export. The plant’s transformer, switchgear, metering and protection equipment then have to match the agreed connection voltage and network operator specifications. Installation output also depends on irradiation, module layout and electrical losses, which are distinct from the capacity offered through the financial support auction.
A financial support award consequently cannot by itself bring a solar project into operation. Developers may still face transformer lead times, civil works, cable installation and restrictions on network connection or export. The timing of those engineering works affects when an awarded project can begin generating and earning revenue, while the bid value reflects expectations about the plant’s output and operating costs over the relevant support period.
The regulator requires bidders to use the current tender forms and specified submission formats. Security must be provided for each individual bid, and non-compliant submissions can be excluded. The deadline is 1 December 2026, with the rules providing for physical receipt of offers at the Bonn office by the prescribed cut-off. The regulator will determine the successful allocation after the bidding process rather than in advance of it.
