Smart Meter Mandate in 2026: What You Need to Know Now as a Solar Panel Owner
Excerpt
Starting in 2026, the smart meter requirement will become a significant economic issue for operators of photovoltaic systems with a capacity of 7 kW or more: Anyone feeding electricity into the grid without a smart metering system will permanently lose 40% of their potential feed-in. This article is aimed at operators of photovoltaic systems, investors, and companies with their own PV systems, and explains what the smart meter requirement starting in 2026 actually means—from the legal framework and all deadlines to the new revenue models. Since February 25, 2025, the Solar Peak Act has fundamentally changed the rules of the game for all new PV systems of 7 kW or more: Anyone who does not have a smart metering system installed will permanently feed in only 60% of their output. At the same time, the requirement opens the door to energy sharing starting in June 2026 and dynamic rates—new revenue streams that are simply not accessible without a smart meter.
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As of February 25, 2025, a clear rule applies to all new photovoltaic systems with a capacity of 7 kW or more: No smart metering system means a 60% feed-in reduction—permanently, not just once. The metering point operator is responsible for installing the smart meter; system operators must allow this. Existing systems installed before the deadline are fully protected but must be controllable by 2029. For investors: The smart metering system is the technical prerequisite for energy sharing, direct marketing, and dynamic tariffs—in other words, for all revenue models that will gain importance starting in 2026. For companies with their own PV system: Find out here what this means specifically for your system—or explore solar power without equity as a possible entry point.
Table of Contents
The Solar Peak Act: The Legal Basis for Mandatory Smart Meters
Who is required to install a smart meter? The 7-kW threshold in detail
What happens without a smart meter? An explanation of the 60% power reduction
When do the new rules take effect? Deadlines and rollout status for 2026
Smart Metering System, Smart Meter Gateway, and Control Box: What's Behind Them?
Negative electricity prices, declining feed-in tariffs, and the impact of smart meters
Energy Sharing Starting in June 2026: The New Revenue Model for PV Operators
Smart Meter Installation: Costs, Providers, and What Landlords Need to Know
What the smart meter mandate means in practice for PV investors
1. The Solar Peak Act: The Legal Basis for the Smart Meter Mandate
The requirement for smart meters in PV systems in Germany is based on the Solar Peak Act, which took effect on February 25, 2025. It simultaneously amended the Metering Point Operation Act (MsbG), the Energy Industry Act (EnWG), and the Renewable Energy Act (EEG) 2023—thereby establishing the legal framework for the digitalization of the energy transition.
The law is officially titled the "Act Amending Energy Industry Law to Prevent Temporary Surpluses in Electricity Generation. " The Bundestag passed it on January 31, 2025, and the Bundesrat approved it on February 14, 2025. Background: By the end of 2024, approximately 100 GW of PV capacity had been installed in Germany. On sunny afternoons, photovoltaic systems generate more electricity than the grid can absorb—with steadily growing consequences for grid stability and feed-in tariff costs.
The political response to this: Decentralized generators must be made controllable. Instead of applying a blanket curtailment to PV systems, an intelligent metering system with a control box should allow the grid operator to reduce feed-in in a targeted manner and in real time—only when necessary, and only to the extent necessary.
What the law specifically stipulates for households, businesses, and investors:
New PV systems of 7 kW or more: Requirement for the meter operator to install a smart meter
New PV systems (2–100 kWp) without a smart metering system: Feed-in limit set at 60% of rated capacity
New PV systems of 2 kWp or more: No EEG feed-in tariff if the electricity price on the exchange is negative
Existing facilities in operation as of February 25, 2025: Full grandfathering, no retroactive changes
2. Who is required to install a smart meter? The 7-kW threshold in detail
The smart meter requirement applies to systems with an installed rated capacity of 7 kW or more—regardless of how much electricity is actually fed into the grid or whether a storage system is in place. Anyone connecting a photovoltaic system above this threshold to the grid must have a smart meter installed.
The requirement under § 29 of the MsbG applies to three groups of consumers, and all relevant information is clearly regulated:
Households and businesses with an annual consumption of more than 6,000 kWh —which is equivalent to the average consumption of a single-family home with a heat pump
Operators of solar power systems with an installed capacity of 7 kW or more
Operators of controllable consumer devices such as heat pumps, wall boxes for electric vehicles, or home storage systems with a capacity of 4.2 kW or more
The requirement applies if even one of these criteria is met. These thresholds are established by law: Section 29(1)(2) of the MsbG defines the PV limit as 7 kWp, Section 29(1)(1) of the MsbG defines annual consumption as 6,000 kWh, and Section 29(1)(3) of the MsbG in conjunction with Section 14a of the EnWG defines the taxable consumption facility as 4.2 kW or more. Particularly relevant for households: Anyone operating a heat pump and a PV system under 7 kW is already affected by the heat pump alone. The old analog Ferraris meter or a simple digital electricity meter must then be replaced with a smart metering system.
Overview by system size
≤ 2 kWp (balcony solar power system): Fully exempt; no smart meter requirement
> 2 to ≤ 7 kWp: Not mandatory, but subject to a 60% cap for new installations; approx. €30/year (optional)
> 7 to ≤ 15 kWp: Mandatory + tax box, energy costs capped at approx. €100/year
> 15 to ≤ 25 kWp: Mandatory + tax box, capped at approx. €160/year
> 25 to ≤ 100 kWp: Mandatory + tax box, capped at approx. €190/year
> 100 kWp: Mandatory (rollout starting in 2028), control box + RLM meter, individual
Important for landlords and property owners: Anyone who operates a building with a PV system exceeding 7 kW is directly affected. The cost of any necessary meter cabinet upgrades is borne by the owner—not the tenant. In short: The sooner the meter cabinet is checked for retrofit compatibility, the cheaper it will be.
Voluntary Smart Meter Installation: Customers who do not belong to the mandatory group—that is, those who consume less than 6,000 kWh per year, do not operate a PV system larger than 7 kW, and do not use controllable consumption devices—can still have a smart meter installed voluntarily. Starting in January 2025, the meter operator must install the meter within four months of receiving a request. The one-time incentive: access to dynamic electricity rates and energy sharing starting in June 2026.
3. What happens without a smart meter? An explanation of the 60% power reduction
Under Section 9(2) of the EEG 2023, new PV systems with a capacity between 2 and 100 kWp that do not have a smart metering system may feed into the grid at only 60% of their installed rated capacity—until smart meters and control boxes have been installed and successfully tested. This is not a reduction in the feed-in tariff, but a physical power cap at the feed-in point.
A concrete example:
A new 12-kWp system that does not yet have an electricity meter with a gateway may feed in a maximum of 7.2 kW. On a summer day with 11 kW of production , 3.8 kW goes unused. With 1 , 000 full-load hours and a feed-in tariff of 7.78 ct/kWh, this results in a loss of revenue of around €295 per year —every year, as long as the smart metering system has not yet been installed.
The cap also applies to PV systems between 2 and 7 kWp, for which the previous 70% rule has been eliminated. For consumers with smaller rooftop systems, this means that even without a legal requirement, they stand to lose up to 40% of their potential feed-in revenue without the new metering system.
The restriction is automatically lifted as soon as the smart meter is installed and the utility has successfully completed an end-to-end test of its remote control functionality.
4. When do the rules take effect? Deadlines and the status of the smart meter rollout as of 2026
The smart meter rollout follows legally mandated quotas under Section 45 of the Metering Points Act (MsbG)—which must be met by the metering point operator, not the facility owner. According to the Federal Network Agency, only about 20% of the required installations had been completed by the end of 2025. The 24-month transition period runs through February 2027.
In short: The rollout is underway, but many households are still waiting for installation. This is due less to legal loopholes than to capacity constraints among metering point operators and a lack of compatible hardware. Anyone connecting a new system to the grid today should expect to start with the 60% limit—and switch to full feed-in only after installation.
Schedule at a Glance
February 25, 2025 – Solar Peak Act takes effect; all new systems of 7 kW or more are affected
By the end of 2025 – 20% of all mandatory metering points equipped (smart meter rollout target barely met)
February 2027 – All new installations with a capacity of 7 kW or more must be equipped with a smart metering system (24-month transition period)
January 1, 2029 – Mandatory retrofitting for existing systems over 7 kW; controllability must be ensured
By the end of 2030 – 95% of all mandatory metering points will be equipped with electricity meter gateways
2032 – 100% rollout target for all households and solar power systems in Germany
For operators of existing systems over 7 kW: No action required—the metering point operator will contact you directly. They are legally required to provide written notice at least three months before the planned installation (Section 37 of the Metering Point Operators Act). Within this period, owners can choose a different provider as their metering point operator to compare costs.
5. Smart metering system, smart meter gateway, and control box: What’s behind them?
A smart metering system is more than just a digital electricity meter: it is the communication infrastructure that connects the PV system, the grid operator, the direct marketer, and the supplier in real time. It is only through smart metering systems that a system becomes a controllable part of the smart grid.
The three components in detail
1. Modern Metering Equipment (mME) – the digital electricity meter Replaces the old analog Ferraris meter. The new digital electricity meter records feed-in and consumption every 15 minutes and automatically transmits the consumption data—no more manual meter readings are necessary. All data is available at any time via an online portal. For households, this has a tangible benefit: By viewing electricity consumption in 15-minute intervals, it becomes much easier to identify energy-intensive appliances in the home—such as the washing machine, heat pump, or electric car charging process—and to reduce energy costs in a targeted manner.
2. Smart Meter Gateway (SMGW) The BSI-certified communication unit: the heart of the smart grid. It connects to the electricity meter via three encrypted interfaces:
LMN (Local Metrology Network) – Meter connection; transmits measurement data from the electricity meter
WAN (Wide Area Network) – Communication with metering point operators, grid operators, and direct sellers
HAN (Home Area Network) – local control, access to dynamic rates, on-site data retrieval
3. Control box (control device) Enables the utility to remotely control power feed-in in real time—for example, during grid congestion or on days when electricity prices are negative. Only when the control box is activated is the full output of the PV system released for feed-in, and the 60% limit is lifted.
For large-scale PV systems over 100 kW, data loggers are also required for continuous monitoring—they provide comprehensive performance and yield data. For systems over 500 kW, certified EZA controllers (generation plant controllers) in accordance with VDE-AR-N 4110 are also required. Important: Solar Package I (May 2024) raised the previous EZA controller requirement from 135 kW to >500 kW —PV systems below this threshold fall under the simplified VDE-AR-N 4105 standard.
The key advantage over basic metering systems: Smart metering systems form the basis for dynamic rates, direct marketing of PV electricity, and energy sharing—all sources of revenue that would not be accessible without a smart metering system. In short, this generation of metering systems will play a key role in the electricity supply starting in 2026.
6. Negative electricity prices, declining feed-in tariffs, and the impact of smart meters
The current EEG feed-in tariff is steadily declining—and the Solar Peak Act has further tightened the rules governing compensation when electricity prices are negative. Anyone who understands these dynamics will see why the smart meter is not just a requirement, but also an economic tool.
Current feed-in tariff (February 1 through July 31, 2026)
up to 10 kWp, partial feed-in: 7.78 ct/kWh
up to 10 kWp, full feed-in: 12.35 ct/kWh
10–40 kWp, partial feed-in: 6.73 ct/kWh
40–100 kWp, partial feed-in: 5.50 ct/kWh
Starting August 1, 2026, the rates will drop to 7.71 ct/kWh (partial feed-in up to 10 kWp) due to the semi-annual 1% degression. The declining feed-in rates are shifting the focus: self-consumption—especially for households with heat pumps or electric vehicle wall boxes with annual consumption well over 6,000 kWh—is becoming increasingly attractive compared to pure grid feed-in. Our article on the 2026 EEG feed-in tariff and the CfD reform analyzes what this means in the long term.
Negative electricity prices: A growing phenomenon in the electricity market
2023: 301 hours with negative electricity prices
2024: 457 hours (+52% compared to 2023)
2025: 573 hours – a new record (+25% compared to 2024)
The electricity market is undergoing structural changes: the more solar panels, heat pumps, and storage systems are connected to the grid, the more frequently solar-driven midday peaks occur, causing prices to dip below zero. From 2023 to 2025, the number of negative hours has nearly doubled—and market analysts estimate that this trend will continue through 2030, reaching up to 1,000 hours per year. For new systems installed on or after February 25, 2025, the following applies during these hours: no EEG feed-in tariff. To compensate, these hours will be added to the end of the 20-year subsidy period—according to Finanztip estimates, this extends the subsidy period by about five years. Our article on negativeelectricity prices and PV investors explains why this is not a problem for prepared investors.
Important note:This rule takes effect only after the PV system has been equipped with a smart meter and a new calendar year has begun. In the year the system is commissioned, the full feed-in tariff will still be paid out—energy costs for households without iMSys remain unchanged during this phase.
If you have a battery storage system, you can stop feeding power into the grid during hours when prices are negative and charge your battery instead—this lowers your energy costs and protects you from lost revenue. Read more in the article on PV systems with battery storage and co-location.
7. Energy Sharing Starting in June 2026: The New Revenue Model for PV Operators
Starting June 1, 2026, Section 42c of the Energy Industry Act (EnWG) will, for the first time, allow the sharing of locally generated solar power via the public grid—a practice known as “energy sharing.” A smart meter is a mandatory requirement. Anyone who has not yet had one installed, or who has chosen not to, will be excluded from this model.
The law (passed by the Bundestag on November 13, 2025; effective December 22, 2025) requires all distribution system operators to enable energy sharing within their balancing zones starting June 1, 2026. Starting June 1, 2028, this requirement will be extended to directly adjacent balancing zones.
What Energy Sharing Means for Operators, Households, and Investors
Instead of a feed-in tariff of 7–8 cents/kWh: Sell electricity directly to neighbors—typically 15–25 cents/kWh, negotiable
Households that do not generate their own electricity benefit as consumers: it is cheaper than regular grid electricity
Grid fees will continue to apply; the German model does not provide for separate subsidies
All participants in the Energy Sharing Community must have a smart meter installed: the law requires that all generation and consumption data be measured at 15-minute intervals
A simple digital electricity meter without a smart meter gateway is not enough
Eligibility: Individuals and households, small and medium-sized enterprises (up to 250 employees / €50 million in revenue), municipalities, and public-law entities. Large energy companies are excluded.
The administration can be delegated to service providers such as municipal utilities or energy-sharing platforms—the costs of which should be factored into the cost-benefit analysis.
8. Smart Meter Installation: Costs, Providers, and What Landlords Need to Know
The mandatory installation of smart meters is free of charge for affected households and businesses—the meter operator covers the installation costs. The only annual costs are the operating costs, which are capped by law under Section 30 of the Metering Points Act (MsbG).
Annual operating costs (capped by law)
> 7 to ≤ 15 kW: Electricity meter system approx. €50 + control box approx. €50 = approx. €100/year
> 15 to ≤ 25 kW: approx. €110 + tax box approx. €50 = approx. €160/year
> 25 to ≤ 100 kW: approx. €140 + tax box approx. €50 = approx. €190/year
Over 20 years, these energy costs add up to between €2,000 and €3,800— a manageable expense compared to the loss of revenue resulting from the 60% throttling without a smart meter. By way of comparison: The costs for the annual metering of a heat pump alone (Section 14a of the Energy Industry Act, EnWG; controllable consumption device) are of a similar magnitude and are often more than offset by grid fee discounts.
What isn't capped
Costs for any meter cabinet upgrades if it does not comply with current standards:
Typically: €500 to €2,000
Individual cases: up to €5,000
These costs are borne by the owner—renters are not affected, but landlords are
Changing Meter Service Providers: Once they receive the installation notice, households and businesses have three months to switch to another provider. After that, switching becomes much more complicated. In short: Don’t ignore the notice; compare offers, then decide.
For landlords and property owners:
Landlords with rooftop PV systems exceeding 7 kW should have their meter cabinets inspected in a timely manner to ensure they can be retrofitted. The metering point operator will provide further information on the installation process in the notification. Landlords who own multiple units with individual meters should also check whether the households consume more than 6,000 kWh per year—in which case these meters are also affected. The installation requirement applies here as well; landlords cannot prevent the installation of smart meters (Section 36 of the Metering Point Act).
Important for landlords with central heating: Once remotely readable heat meters are installed, landlords are required under the Heating Costs Ordinance to provide tenants with monthly consumption information for heating and hot water—free of charge, either digitally or by mail. This requirement applies regardless of whether an electricity smart meter is in use. Starting January 1, 2027, only remotely readable meters may be used in centrally heated buildings with at least two residential units—all remaining analog heat meters must be replaced or retrofitted by the end of 2026.
Financial benefit under Section 14a of the Energy Industry Act (EnWG): Homeowners or operators who use controllable consumption devices such as heat pumps or wall boxes are eligible for a reduction in grid fees of €120 to €200 per year under Section 14a of the Energy Industry Act (EnWG) as compensation for the grid operator’s right to temporarily reduce the output of these devices in the event of grid overload. In many cases, this fully offsets the annual operating costs of the smart meter.
9. What the smart meter mandate means in practice for PV investors
For investors in PV systems, the smart meter is not primarily a requirement—it is the technical foundation for all revenue models that will be economically viable in 2026 and beyond. Those who do not plan for smart metering systems will permanently exclude themselves from a growing portion of the revenue stream.
Three specific consequences
1. Ensure full grid feed-in from the start A PV system with a smart meter feeds 100% of its output into the grid, while one without feeds only 60%. For a 750-kW system, this means that instead of 750 kW, only 450 kW can be fed into the grid on a permanent basis—a loss of up to 30% of the calculated annual yield. Not just once, but every year until the smart meter is installed.
2. Plan for infrastructure from the start A compatible meter cabinet that allows for the installation of the electricity metering system without costly retrofitting should be included in every project plan. The annual operating costs of €100 to €190 must be included in every cost-benefit analysis. A reputable project planner includes the metering equipment, control box, and meter cabinet as standard—and has the smart meter installed before the system goes online.
3. Energy Sharing and Direct Marketing as a Source of Additional Revenue The smart metering system is a prerequisite for energy sharing (starting in June 2026), dynamic rates, and optimized direct marketing. Instead of a feed-in tariff of 7–8 cents/kWh, energy sharing can generate 15–25 cents/kWh—yet households, as consumers, still pay less than they would on the regular electricity market.
Outlook: 2027 EEG Reform
A leaked draft of the EEG from the BMWK (known since February 2026) calls for the elimination of the fixed feed-in tariff for new systems up to 25 kW starting in 2027. Whether and how this will be implemented remains to be seen. Anyone who wants to secure the current feed-in tariff for 20 years has good reason to consider commissioning their system in 2026—read more about this in our article on the declining feed-in tariff in 2026.
About PV Investments → The smart meter pathis a regulatory milestone—and a gateway to the new world of PV revenue. Learn how Logic Energy plans, builds, and operates systems that meet these requirements from the very start.
This article is intendedsolely forgeneral information purposes only and does not constitute investment, tax, or legal advice. Return figures are based on historical data from the Helm Group and are not a guarantee of future results. For advice tailored to your individual situation, please consult a licensed advisor. All information is provided without warranty. As of March 2026.
Thesmart meter mandate may sound like red tape—but in reality, it is the technical key to the next generation of PV yields. Anyone planning a system that will use Energy Sharing starting in June 2026, respond flexibly to negative electricity prices, and be competitive in the direct sales market needs a smart metering system not in spite of the mandate, but precisely because of the opportunities it unlocks. Logic Energy designs and builds PV systems in which iMSys, the control box, and the meter cabinet are part of the planning from the very beginning—not as an aftermarket addition, but as standard. Contact us—we’ll calculate what makes sense for your system and answer your questions in a no-obligation consultation.
FAQ
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No. The primary metering point operator (gMSB) is legally required to install the meter. They must notify households and businesses in writing at least three months in advance. You have until that time to choose a different provider. You cannot refuse the smart meter (Section 36 of the Metering Point Act).
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No. Systems installed before February 25, 2025, are fully protected—no 60% cap, no zero compensation for negative prices, and no retroactive changes. Landlords with older systems are also not affected by this.
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For systems between 7 and 15 kW, the cost is approximately €100 per year (approx. €50 for the metering equipment + approx. €50 for the control box). Physical installation is free of charge. There is no cap on the cost of meter cabinet upgrades.
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A smart metering system consists of a digital electricity meter (metering device) and a smart meter gateway. The control box is an additional device that enables the utility to control the system remotely. Only when all three components are in place is the 60% limit fully lifted.
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No later than January 1, 2029. The meter operator will contact you in a timely manner—owners, landlords, and operators do not need to take any action themselves.
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No. Energy sharing under Section 42c of the Energy Industry Act (EnWG) requires the use of smart metering systems. All participating households are required to measure all generation and consumption data at 15-minute intervals. A digital meter without a gateway is not sufficient.
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Yes. The requirement applies to systems with an installed rated capacity of 7 kW or more—regardless of actual consumption, grid feed-in, or available storage.
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Yes. Anyone who consumes less than 6,000 kWh per year and does not have a PV system larger than 7 kW or controllable consumption devices can still apply for installation. Since January 2025, the metering point operator must complete the installation within four months of receiving a request. The advantage: access to dynamic electricity rates, which, according to recent studies, can save households with PV, storage, and electric vehicles up to 51% compared to fixed-rate tariffs.
References
Federal Network Agency – Metering Point Operation Act (MsbG): Installation Deadlines, Price Caps, Rollout Status – As of March 2026
pv magazine – Solar Peak Act published in the Federal Law Gazette; new regulations take effect on February 25 – Sandra Enkhardt, February 24, 2025
pv magazine – Smart meter rollout reaches 20 percent mark for mandatory installations – Rollout rate data from the Federal Network Agency, December 29, 2025
Finanztip – Feed-in Tariffs 2026: Amounts, Trends, and Planned Reforms – Current EEG Tariff Rates Under Sections 48, 49, and 53 of the EEG 2023, as of March 2026
CHP Information Center – Negative Electricity Prices: Facts and Statistics – Hourly Quotas for 2022–2025, as of March 2026
German Energy Agency (dena) – Smart Meters: Second Amendment to the MsbG in 2025 and New Metering Point Contracts – MsbG Amendment, Cooperative Networks, Metering Point Contracts Effective July 2026, 2025
Gleiss Lutz – Energy Sharing under Section 42c of the German Energy Industry Act (EnWG) – Legal Analysis of Section 42c EnWG, January 2026
FfE – Research Center for Energy Economics – Energy Sharing under Section 42c of the Energy Industry Act (EnWG): A Legislative Milestone, Framework Conditions, and Next Steps – Implementation Analysis, March 2026
Baker Tilly – Energy Sharing: Amendment to the Energy Industry Act Establishes New Legal Framework – Analysis of Section 42c of the Energy Industry Act, 2025
INOL GmbH – FAQ on the 2025 Solar Peak Act: Frequently Asked Questions, Clear Answers – Practical Details on the Transition Period and the Effective Date of February 25, 2025
Smartoptimo – Energy Law Amendment, Including Changes to the MsbG, EEG, and EnWG, Effective February 25, 2025 – Details of the MsbG/EEG/EnWG Amendments, February 2025
GeVestor – Smart Meter Mandate 2026: Information for Homeowners and Landlords – Landlord Responsibilities, Monthly Usage Reports, Heating Cost Ordinance, November 2025
verbraucher.online – Mandatory Smart Meters in 2026: Costs, Installation, Dynamic Rates – Grid Fee Reduction under Section 14a of the Energy Industry Act (EnWG), 51% Savings Potential, December 2025
