GO
Loading...

German tax to finance renewable energy skyrockets

BERLIN -- Germany's tax on households' electricity bills to finance the expansion of renewable energies will rise almost 50 percent on the year as the country pushes ahead with phasing out nuclear power within a decade.

The country's four main grid operators say Monday that the tax will rise from (EURO)3.6 cents to (EURO)5.3 cents ($6.7 cents) per kilowatt hour starting in January. That brings the annual cost of financing Germany's energy switchover for a family of four to about (EURO)250 ($324) per year, including sales tax.

The tax is used to pay producers of solar, wind or biomass power guaranteed above-market rates to ensure their investment will be profitable.

Renewable energies currently produce a quarter of Germany's electricity but are set to account for 80 percent by 2050.