Germany's 2017 green power surcharge to rise 8 percent: sources

A car is parked at a service station for electric cars powered by solar energy in the village of Wolpertshausen near Schwaebisch Hall, Germany, March 18, 2016. REUTERS/Michaela Rehle

FRANKFURT (Reuters) - A surcharge levied on German consumers to support renewable power will most likely rise by around 8 percent next year, despite government efforts to scale back support for green power, sources in the power transmission sector said on Tuesday.

The fee makes the biggest single contribution to financing Germany’s Energiewende policy shift to more renewable power, raising 24 billion euros ($27 billion) last year.

The surcharge under the renewable energy act (EEG) will be 6.88 euro cents per kilowatt hour (kWh) in 2017, up from 6.35 cents this year, the sources said ahead of an official statement from the country’s network operators (TSOs) due on Friday.

If this level is applied, an average household consuming 3,500 kWh a year will pay around 22 euros more per year, or a total of 286 euros including value added tax of 19 percent, towards the EEG.

In 2016, the EEG accounts for about 22 percent of customers’ total bill.

The figure reflects the increase in renewable installations, such as wind turbines and solar panels which receive above-market payments in order to gradually make them competitive with conventional energy generation units whose output is priced by the wholesale market.

Reporting by Vera Eckert; Editing by Mark Potter