Content
Industriestrompreis: How it works and why it favours flexibility investments
Takeaways
Companies are guaranteed a fixed electricity price rebate: For 2026, companies receive €37.44 per MWh on 50% of a site's eligible consumption. The measures run for the billing years from 2026 to 2028 and an approved budget of €3.8 billion.
Rebates received must be reinvested into decarbonisation and energy efficiency measures: At least half of the funds must be reinvested within 48 months of approval, including into flexibility, renewable generation, energy efficiency or grid infrastructure.
Energy intensive sectors subject to significant carbon leakage risk are eligible: These include but are not limited to sectors and subsectors producing basic chemicals, metals, glass, ceramics, cement and batteries.
Companies investing in flexibility measures can unlock an additional bonus: A 10% bonus payment is available if 80% of the reinvestment obligation is allocated towards demand-side flexibility measures, such as battery storage.
1. Companies in energy intensive sectors can receive electricity price relief for 50% of their consumption
The Industriestrompreis is an electricity price relief, not a price cap. It pays a fixed rebate per MWh, derived from a reference price that is identical across all companies. The price of the reference price is based on the average daily settlement price of the EEX German baseload year future, traded in the year before delivery. For 2026, it is €87.44 per MWh. The company always bears the first €50 per MWh itself, the target price. The rebate covers the difference, which would be €37.44 per MWh in 2026.
In order to be eligible, companies need to be included in one of the 91 sectors included in the Climate, Energy and Environment Aid Guidelines (CEEAG) Annex, covering energy intensive sectors and subsectors that are subject to significant carbon leakage risk. This means that these companies' are likely at risk of relocation from both high electricity price costs and off-shoring through carbon pricing measures.
The rebate applies to 50% of the site's eligible consumption: the electricity site’s self-consumption whether it is bought or self-generated. Volumes passed on to third parties or fed into the grid are not eligible. This also includes consumption that is already supported under the “Strompreiskompensation”. The Strompreiskompensation is a state-aid scheme which partially reimburses energy intensive industries for the costs associated with carbon pricing measures.
2. Half of the funds must be reinvested into decarbonisation and energy efficiency measures
In return for receiving the Industriestrompreis rebate, the company commits itself investing at least 50% of the base aid in decarbonisation measures. These includes measures in the following four categories:
Renewables: on-site generation, or new PPAs that finance new plants.
Energy efficiency: measures that reduce electricity demand.
Flexibility: storage, load management, electrification and electrolysers.
Energy infrastructure: grid connections and site grids that integrate renewables or storage.
The measures must be implemented within 48 months of approval, or up to 72 months where technical reasons justify it. Investments count from the start of the billing year, so an asset commissioned in 2026 can cover the 2026 obligation, at the company's own risk until approval.
3. Investments in flexibility measures unlock additional bonus payments
The aid available through the Industriestrompreis can increase by an additional 10% if at least 80% of its required investments are made into demand-side flexibility. Of the additional 10% bonus, 75% must be reinvested into flexibility measures.
To qualify as a flexibility measure, it must be able to adjust the consumption in response to market or grid signals, so installing a battery by itself is insufficient. Control, metering and IT systems that make this possible are also eligible flexibility investments.
4. Applications are filed retrospectively each year, with the first deadline on 31 March 2027
Applications are filed retrospectively after each billing year at BAFA, through the Förderzentrale Deutschland portal. Each company files one application per year.
Deadline for 2026: 31 March 2027, with all evidence. Companies that also apply for Strompreiskompensation for 2026 have until 15 July 2027.
Required evidence: Differs by the site consumption levels
Below 10 GWh of eligible consumption, the sector classification, a site plan and electricity bills.
From 10 GWh, an auditor's certificate replaces the bills; for 2026, it can follow until 31 May 2027.
Investments: the application does not need them planned measures. Once the aid is granted, the BAFA can confirm on request whether a planned measure qualifies.
The scheme is currently set to end with the 2028 billing year.
5. How to get the most of batteries bought under the Industriestrompreis
A battery bought to meet the obligation has huge upside, if it is optimised to its full potential. Navigating the complexities of MiSpeL, the new grid fees from 2029 under AgNes requires a partner who delivers the requisite sophistication.
Flexa optimises C&I batteries across all of these uses. Get in touch to see what a new C&I battery can deliver at your sites!
