Since then, there have been two revisions of the EEG, each four
years apart, to take account of progress and the challenges of
the dynamic growth of renewables. The next revision has already
been started because Germany's governing coalition of the
CDU/CSU and FTP specified in their coalition agreement that the
new law is to take effect in January 2012 after only three
years. How the EEG works The principle behind the feed-in
tariffs in the Renewable Energy Act (EEG) is quite simple.
Owners of renewable power generators receive a set rate for each
kilowatt-hour of renewable power over a period of 20 years. The
specific rate paid depends on the technology and location. Each
year, the rate is reduced slightly for systems newly connected
to the grid, though the rate remains the same for 20 years once
you are connected. In other words, the longer you take to
connect to the grid, the less compensation you receive. The
reduction in feed-in tariffs provides an incentive to lower
costs, such as for equipment, in orde