Germany plans to scale back renewable-energy subsidies in a sweeping overhaul of its funding system, as surging solar output puts growing strain on the country’s power grid. From 2027, new renewable generators should receive support “in a way that benefits both the market and the system,” according to a draft law published by the Economy Ministry late on Friday. That means rewarding projects that respond more closely to electricity demand and do not worsen grid congestion. Fixed feed-in tariffs...