Follow-up programme for promoting battery storage systems in connection with photovoltaic installations starts on 1 March 2016

On behalf of the Federal Ministry for Economic Affairs and Energy (BMWI), KfW shall resume the programme for promoting stationary battery storage systems in conjunction with photovoltaic systems. It had expired at the end of last year and shall be relaunched on 1 March 2016. The programme is aimed at encouraging the market and technological development of battery storage systems, for which it offers low-interest KfW loans and repayment bonuses from BMWI funds. The promoted systems contribute towards improving the integration of small and medium-sized photovoltaic systems in the electricity market. The programme will now run until the end of 2018.

The most important changes compared to the predecessor programme include:

• The photovoltaic installation may feed maximum 50% of the installed capacity into the power grid (previously 60%).
• The manufacturer must provide a 10-year fair value replacement guarantee for the promoted batteries (previously seven years).
• The level of the repayment bonuses is degressive over the programme period, meaning that the repayment bonuses are reduced gradually from 25% to 10% of the eligible costs, depending on when the application is submitted.

This is intended to incentivise manufacturers to pass on the technology and production-related cost reductions to the customers.

Dr Ingrid Hengster, Member of the KfW Executive Board, said, "The promotion of battery storage systems that began in May 2013 provided an important impetus for developing the technology and the market. While the progress is remarkable, we still need targeted and carefully-measured impetus on the way to becoming a self-sustaining and competitive market where bonuses are not required. We are convinced this can be achieved by the end of 2018".

For further information on Programme 275, please visit "www.kfw.de/batteriespeicher" (page available in German only).