Results of the May 2026 Innovation Tender

The latest innovation tender by the German Federal Network Agency (Bundesnetzagentur) shows that the market for PV systems combined with battery storage remains highly dynamic. The tender round with a bid deadline of 1 May 2026 was again oversubscribed. A total volume of 475 MW was tendered, while 46 bids with a combined capacity of around 749 MW were submitted. In the end, 27 projects with a total volume of around 482 MW were awarded. Once again, all successful bids went to combinations of photovoltaic systems and battery storage.

The average volume-weighted award value was 5.34 ct/kWh, almost unchanged compared to the previous round in September 2025. Award values ranged from 4.75 to 5.61 ct/kWh. Bavaria accounted for the largest share, with 15 awarded projects and around 287 MW, followed by Schleswig-Holstein and Brandenburg.

What are innovation tenders?

Innovation tenders are a support instrument managed by the German Renewable Energy Sources Act (EEG). They are designed to incentivise project concepts that go beyond pure electricity generation. Today, the focus is mainly on so-called system combinations: renewable energy plants that are combined with storage.

The Federal Network Agency usually holds these tenders twice a year, on 1 May and 1 September. The aim is to support projects that not only generate renewable electricity, but also help integrate it more effectively into the power system.

What is supported?

Eligible projects are system combinations that connect at least one renewable energy source with a storage asset. In practice, these are currently primarily PV systems combined with battery storage.

A key element is the concept of green co-located storage. The storage system may not simply be charged from the grid; it must be charged with electricity from the associated renewable energy plant. The support mechanism therefore does not reward storage capacity as such, but storage assets that are directly coupled with renewable generation. This creates flexibility where it is particularly valuable for the power system: in the better integration of renewable electricity.

System combinations are eligible, among other things, if:

• the bid volume is at least 1 MW,

• all system components feed into the grid via a common grid connection point,

• the storage system is charged exclusively with electricity from the associated renewable energy plant,

• the systems are commissioned only after the bid deadline.

Since 2021, special solar installations have also played a more prominent role. These include PV systems that enable dual land use, for example on parking areas, bodies of water or agricultural land. Such concepts are likely to become increasingly important, as they can reduce land-use conflicts while unlocking additional renewable generation potential.

How does the mechanism work?

Until the end of 2022, innovation tenders awarded a fixed market premium. This model has since been replaced. Today, bids are submitted for a sliding market premium.

Put simply: if the market value of the electricity is below the awarded bid value, the market premium compensates for the difference. If the market value is above the bid value, no additional support is paid.

This links projects more closely to the electricity market. For storage assets in particular, this is important. Their business case increasingly depends on several revenue streams: electricity sales, price arbitrage, flexibility marketing and, in the future, additional system-supporting applications. At the same time, the innovation tender sets a clear framework: not every storage asset is supported, but specifically green co-located storage systems as part of a renewable energy project.

Development since 2020

The first innovation tender took place in 2020. Since then, the instrument has changed significantly. While the early rounds were more technology-open, the focus today is clearly on combinations of generation and storage.

After weaker tender rounds in 2022 and early 2023, interest has increased noticeably since autumn 2023. Since September 2024 in particular, the submitted bid volumes have repeatedly been well above the tendered volume.

Award values also show a clear trend. After the high levels seen in 2023 and early 2024, they have recently declined. This points to more mature projects, greater experience in project structuring and falling battery storage costs.

In short, the market is becoming more professional. Successful projects today need to do more than achieve low levelised costs of electricity. They must bring together storage sizing, grid connection, marketing strategy and support scheme requirements in a coherent way.

Conclusion: storage is moving to the centre

The latest tender round shows where the market is heading: PV-battery storage combinations are becoming more important, more competitive and more professionally structured. The oversubscription of the tender and the stable award values send a clear signal.

Innovation tenders are therefore more than just a support instrument. They show how the expansion of renewable energy is changing: away from pure generation and towards flexible, market-integrated and system-supporting assets. Green electricity storage plays a central role in this development. It makes renewable electricity more usable and is specifically incentivised through the support scheme.