I'm not sure that makes any sense at all if the goal is to lower CO2 emissions. Roll the subsidies back onto general tax dollars and quit adding VAT (sales) tax to retail electricity. Germany has a disincentive program for getting off fossil fuels in place.
In my heat pump compairision was VAT even excluded. The financial ministry even earns much more VAT on the higher taxes of renewables!
(what the hell is the sense in there?!)
Much bigger focus required outside the electricity sector, on transport (oil) and heating (gas):
Indeed that is the problem! The price system in place is a disincentive system for private costumers that are not common with the urgent problem of climate change. The private sector currently has to carry ALL the costs of renewables. All high energy industry (and the rules for that got lower and lower) has not to pay anything.
If you want to get a movement into transport and heat you either need a well informed public that is willing to install the new techniques, drive an EV or you need a price system that could make a guiding job.
At the moment, if you turn your energy consumption to renewables, or even install own PV, you are the biggest looser ever. Blamed a) having too much money to "waste" b) causing high energy prices. Beside that the system serves the well established german envy factor.
The transistion of all -energy, transport, heat- is a transistion to electricity. Why not dividing the costs through the wider basis of fossil fuels? The costs could be also lower if there were no import duties on chinese solar panels, protecting the European factories (and prices)....
The low market price of energy, and so the costs causing gap to guaranteed price for renewables is caused by overproduction of coal powered energy... but the mechanism of the price system is well hidden, and the media does NOTHING to explain it. It is told: higher amount of renewables is causing higher EEG-Umlage, grids have to be built out due to renewables = higher costs for your electricity - no alternative.
All that mess is no coincidence, but the work of thousands of fossil lobbyists and industry close politicians, that are not willing to change a failing system obviously giving no answers for the future.
By the way: my posted chart refered to the last chart before tCO2/TW it was about the development of gCO2/kWh.