Why the change of heart?

Planned cuts to energy storage subsidies in Germany have been reversed -- for now.

In November, the German government decided to end a 30 percent credit for energy storage systems by the end of this year. But Germany’s Green Party now says the subsidy will continue in some form. Currently, state assistance also includes low-interest loans, in addition to the credit. 

It's still unclear how long the domestic storage subsidy will be available. The Green Party is pushing for three more years.

The extension is very welcome news for companies selling small-scale energy storage in Germany. The subsidy has been instrumental in fueling uptake of battery storage, from almost nothing two years ago, to as many as an estimated 13,000 units in total by the end of this year.

The subsidy, which is provided by the federal government via the German state-owned development bank KfW, was originally created in May 2013 to encourage the uptake of solar-plus-storage.

According to the Federal Ministry of Economic Affairs and Energy, that goal had been met. The subsidy was so successful, argued the ministry, that it was no longer needed. So why the sudden change of heart?

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