German Federal Court of Justice approves building cost subsidies for battery storage systems

Battery storage systems differ from other end consumers in that they do not consume the electricity drawn from the distribution network, but feed it back in at a later time. However, treating grid-connected battery storage systems and other end consumers equally was nevertheless objectively justified in accordance with the intent and purpose of the building cost subsidy.  

The building cost subsidy fulfilled a steering and control function and contributed to the financing of the distribution network. Both also applied to grid-connected battery storage systems, to the extent they use the grid for withdrawals. As with other end consumers, the grid connection must be dimensioned according to the requested withdrawal capacity; the feed-in function had no influence on this.  

The building cost subsidy’s purpose was furthermore not called into question by the fact that battery storage systems can also have beneficial effects on the grid. Even if battery storage systems can relieve the burden on the overall grid, their installation does not always benefit the local connection grid for which the building cost subsidy is requested. 

The inadmissibility of the building cost subsidy for battery storage systems did also not result from an overall assessment of EU regulations in connection with energy storage. These were general objectives that leave room for implementation and conflicted with other objectives, such as the objective of not imposing a disproportionate burden on household customers with the costs of electricity supply. 

Conclusion 

Although an official prohibition under Art. 31 EnWG was the subject of the dispute, the decision of the Federal Court of Justice indicates the legal framework for the collection of building cost subsidies for purely grid-connected battery storage systems within the meaning of Art. 17 (1) sentence 1 EnWG. If you have any questions in this regard, please do not hesitate to contact us.