| Solar power in Germany | |
|---|---|
| Installed capacity | 90 GW (2024) (6) |
| Annual generation | 71 TWh (2024) |
| Capacity per capita | 1069 W (2024) |
| Share of electricity | 15% (2024) |
Solar power accounted for an estimated 15% ofelectricity production in Germany in 2024, up from 1.9% in 2010 and less than 0.1% in 2000.[2][3][4][5]
Germany has been among theworld's top PV installer for several years, with total installed capacity amounting to 81.8 gigawatts (GW) at the end of 2023.[6] Germany's 974 watts of solar PV per capita (2023) is the third highest in the world, behind onlyAustralia andthe Netherlands.[7] Germany's official government plans are to continuously increase renewables' contribution to the country's overall electricity consumption; current targets are 80% renewable electricity by 2030 and full decarbonization before 2040.[8]
Concentrated solar power (CSP), asolar power technology that does not use photovoltaics, has virtually no significance for Germany, as this technology demands much higher solarinsolation. There is, however, a 1.5 MW experimental CSP-plant used for on-site engineering purposes rather than for commercial electricity generation, theJülich Solar Tower owned by theGerman Aerospace Center. Germany'slargest solar farms are located inMeuro,Neuhardenberg, andTemplin with capacities over 100 MW.
According to theFraunhofer Institute for Solar Energy Systems, in 2022, Germany generated 60.8 TWh from solar power, or 11% of Germany's gross electricity consumption.[9]: 6
The country is increasingly producing more electricity at specific times with highsolar irradiation than it needs, driving down spot-market prices[10] and exporting its surplus of electricity to its neighbouring countries, with a record exported surplus of 34 TWh in 2014.[11] A decline in spot-prices may however raise the electricity prices for retail customers, as the spread of the guaranteedfeed-in tariff and spot-price increases as well.[3]: 17 As the combined share of fluctuatingwind and solar is approaching 17 per cent on the national electricity mix,[citation needed] other issues are becoming more pressing and others more feasible. These include adapting theelectrical grid, constructing newgrid-storage capacity, dismantling and alteringfossil andnuclear power plants and to construct a new generation ofcombined heat and power plants.[3]: 7
Price of solar PV systems
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During theReagan administration in the United States, oil prices decreased and the US removed most of its policies that supported its solar industry.[13]: 143 Government subsidies were higher in Germany (as well asJapan), which prompted the solar industry supply chain to begin moving from the US to those countries.[13]: 143
Germany was one of the first countries to deploy grid-scale PV power. In 2004, Germany was the first country, together with Japan, to reach 1 GW of cumulative installed PV capacity.Since 2004 solar power in Germany has been growing considerably due to the country'sfeed-in tariffs for renewable energy, which were introduced by theGerman Renewable Energy Sources Act, and declining PV costs.
Prices of PV systems/solar power system decreased more than 50% in the 5 years since 2006.[14] By 2011, solar PV provided 18 TWh of Germany's electricity, or about 3% of the total.[15] That year the federal government set a target of 66 GW of installed solar PV capacity by 2030,[16]to be reached with an annual increase of 2.5–3.5 GW,[17] and a goal of 80% of electricity from renewable sources by 2050.[18]
More than 7 GW of PV capacity were installed annually during the record years of 2010, 2011 and 2012. For this period, the installed capacity of 22.5 GW represented almost 30% of theworldwide deployed photovoltaics.
Since 2013, the number of new installations declined significantly due to more restrictive governmental policies.
About 1.5 millionphotovoltaic systems were installed around the country in 2014, ranging from smallrooftop systems, to medium commercial and large utility-scalesolar parks.[3]: 5
It's estimated that by 2017 over 70% of the country's jobs in the solar industry have been lost in the solar sector in recent years.[19] Proponents from the PV industry blame the lack of governmental commitment, while others point out the financial burden associated with the fast-paced roll-out of photovoltaics, rendering thetransition torenewable energies unsustainable in their view.[15]
A boom in small, residential balcony-mounted solar systems has been reported in the early 2020s.[20][21][22]
Feed-in tariff for rooftop solar[23]
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Germany introduced itsfeed-in tariff in 2000 and it later became a model for solar industry policy support in other countries.[13]: 145
As of 2012[update], the feed-in tariff costs about €14 billion (US$18 billion) per year forwind and solar installations. The cost is spread across all rate-payers in a surcharge of 3.6 €ct (4.6 ¢) per kWh[24] (approximately 15% of the total domestic cost of electricity).[25] On the other hand, as expensive peak power plants are displaced, the price at the power exchange is reduced due to the so-calledmerit order effect.[26]Germany set a world record for solar power production with 25.8 GW produced at midday on 20 and 21 April 2015.[27]
According to the solar power industry, a feed-in tariff is the most effective means of developing solar power.[28] It is the same as apower purchase agreement, but is at a much higher rate. As the industry matures, it is reduced and becomes the same as a power purchase agreement. A feed-in tariff allows investors a guaranteed return on investment – a requirement for development. A primary difference between a tax credit and a feed-in tariff is that the cost is borne the year of installation with a tax credit, and is spread out over many years with a feed-in tariff. In both cases the incentive cost is distributed over all consumers. This means that the initial cost is very low for a feed-in tariff and very high for a tax credit. In both cases the learning curve reduces the cost of installation, but is not a large contribution to growth, as grid parity is still always reached.[29]
Since the end of the boom period, national PV market has since declined significantly, due to the amendments in theGerman Renewable Energy Sources Act (EEG) that reducedfeed-in tariffs and set constraints on utility-scaled installations, limiting their size to no more than 10 kW.[30]
The previous version of theEEG only guaranteed financial assistance as long as the PV capacity had not yet reached 52 GW. This limit has now been removed. It also foresees to regulate annual PV growth within a range of 2.5 GW to 3.5 GW by adjusting the guaranteed fees accordingly. The legislative reforms stipulates a 40 to 45 per cent share from renewable energy sources by 2025 and a 55 to 60 per cent share by 2035.[31]
As of November 2016[update], tenants inNorth Rhine-Westphalia (NRW) will soon be able to benefit from the PV panels mounted on the buildings in which they live.The state government has introduced measures covering the self-consumption of power, allowing tenants to acquire the electricity generated onsite more cheaply than their regular utility contracts stipulate.[32][33][needs update]
Germany subsidizes the installation of solar capacity.[13]: 145
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In 2017, approximately 9 GW of photovoltaic plants in Germany were being retrofitted to shut down[34] if the frequency increases to 50.2 Hz, indicating an excess of electricity on the grid. The frequency is unlikely to reach 50.2 Hz during normal operation, but can if Germany is exporting power to countries that suddenly experience a power failure. This leads to a surplus of generation in Germany, that is transferred to rotating load and generation, which causes system frequency to rise. This happened in 2003 and 2006.[35][36][37] However, power failures could not have been caused by photovoltaics in 2006, as solar PV played a negligible role in the German energy mix at that time.[38]
In December 2012, the president of Germany's "Bundesnetzagentur", theFederal Network Agency, stated that there is "no indication", that the switch to renewables is causing more power outages.[39]Amory Lovins from theRocky Mountain Institute wrote about the GermanEnergiewende in 2013, calling the discussion about grid stability a "disinformation campaign".[40]
Germany has about the same solar potential asAlaska, which has an average of 3.08 sun hours/day in Fairbanks.[citation needed]
Bremen Sun Hours/day (Avg = 2.92 hrs/day)
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Stuttgart Sun Hours/day (Avg = 3.33 hrs/day)
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Source: NREL, based on an average of 30 years of weather data.[41]
The history of Germany's installed photovoltaic capacity, its average power output, produced electricity, and its share in the overall consumed electricity, showed a steady, exponential growth for more than two decades up to about 2012.[dubious –discuss] Solar PV capacity doubled on average every 18 months in this period; an annual growth rate of more than 50 per cent. Since about 2012 growth has slowed down significantly.
| Year | Capacity (MW) | Net annual generation (GWh) | % of gross electricity consumption | Capacity Factor (%) |
|---|---|---|---|---|
| 1990 | 2 | 1 | 2e-04 | 5.7 |
| 1991 | 2 | 1 | 2e-04 | 5.7 |
| 1992 | 6 | 4 | 7e-04 | 7.6 |
| 1993 | 9 | 3 | 6e-04 | 3.8 |
| 1994 | 12 | 7 | 0.001 | 6.7 |
| 1995 | 18 | 7 | 0.001 | 4.4 |
| 1996 | 28 | 12 | 0.002 | 4.9 |
| 1997 | 42 | 18 | 0.003 | 4.9 |
| 1998 | 54 | 35 | 0.006 | 7.4 |
| 1999 | 70 | 30 | 0.005 | 4.9 |
| 2000 | 114 | 60 | 0.01 | 6.0 |
| 2001 | 176 | 76 | 0.013 | 4.9 |
| 2002 | 296 | 162 | 0.028 | 6.2 |
| 2003 | 435 | 313 | 0.052 | 8.2 |
| 2004 | 1105 | 557 | 0.091 | 5.8 |
| 2005 | 2056 | 1282 | 0.21 | 7.1 |
| 2006 | 2899 | 2220 | 0.36 | 8.7 |
| 2007 | 4170 | 3075 | 0.49 | 8.4 |
| 2008 | 6120 | 4420 | 0.72 | 8.2 |
| 2009 | 10566 | 6583 | 1.13 | 7.1 |
| 2010 | 18006 | 11729 | 1.9 | 7.4 |
| 2011 | 25916 | 19599 | 3.23 | 8.6 |
| 2012 | 34077 | 26220 | 4.35 | 8.8 |
| 2013 | 36710 | 30020 | 5.13 | 9.6 |
| 2014 | 37900 | 34735 | 6.08 | 10.9 |
| 2015 | 39224 | 37330 | 6.5 | 11.3 |
| 2016 | 40679 | 36820 | 6.4 | 10.7 |
| 2017 | 42293 | 38001 | 6.6 | 10.6 |
| 2018 | 45158 | 43451 | 7.7 | 11.6 |
| 2019 | 48864 | 44334 | 8.2 | 11.1 |
| 2020 | 54403 | 48525 | 8.9 | 10.1 |
| 2021 | 60108 | 48373 | 8.7 | 9.1 |
| 2022 | 67399 | 59596 | 11.1 | 10.1 |
| 2023 | 83000 | 63576 | 12.4 |
Source:Federal Ministry for Economic Affairs and Energy, for capacity figures[5]: 7 and other figures.[5]: 16–41
Note: This table does not shownet consumption but gross electricity consumption, which includes self-consumption of nuclear and coal-fire power plants. In 2014, net consumption stood at about 6.9% (vs. 6.1% for gross consumption).[3]: 5
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| Size band | % of total capacity | Notes |
|---|---|---|
| <10 kW | 14.2% | Single direct use systems, mostly residential solar pv systems |
| 10–100 kW | 38.2% | Systems used collectively within one place such as a large residential block or large commercial premise or intensive agricultural units |
| 100–500 kW | 14.1% | Typically larger commercial centres, hospitals, schools or industrial/agricultural premises or smaller ground mounted systems |
| >500 kW | 33.5% | Mostly district power systems, ground-mounted panels providing power to perhaps a mix of industrial and commercial sites |
It is interesting to note that whilst large power plants receive a lot of attention in solar power articles, installations under 0.5 MW in size actually represented nearly two-thirds of the installed capacity in Germany in 2017.
10 – 50 Watts 50 – 100 Watts 100 – 200 Watts 200 – 350 Watts | 350 – 500 Watts 500 – 750 Watts >750 Watts |
Germany is made up of sixteen, partly sovereignfederal states orLänder. The southern states ofBavaria andBaden-Württemberg account for about half of the total, nationwide PV deployment and are also the wealthiest and most populous states afterNorth Rhine-Westphalia. However, photovoltaic installations are widespread throughout the sixteen states and are not limited to the southern region of the country as demonstrated by awatts per capita distribution.
| State | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2023 (April) | W per capita (2023-4) |
|---|---|---|---|---|---|---|---|---|---|---|
 Baden-Württemberg | 1,245 | 1,772 | 2,907 | 3,753 | 5,838.0 | 6,111.8 | 4,984.5 | 5,117.0 | 8,809 | 791 |
 Bavaria | 2,359 | 3,955 | 6,365 | 7,961 | 9,700.5 | 10,424.7 | 11,099.8 | 11,309.2 | 19,563 | 1,484 |
 Berlin | 11 | 19 | 68 | 50 | 63.2 | 68.6 | 80.5 | 83.9 | 215 | 58 |
 Brandenburg | 72 | 219 | 638 | 1,313 | 2,576.1 | 2,711.2 | 2,901.0 | 2,981.5 | 5,920 | 2,332 |
.svg) Bremen | 4 | 5 | 14 | 30 | 32.3 | 35.3 | 39.9 | 42.2 | 70 | 103 |
 Hamburg | 7 | 9 | 27 | 25 | 32.1 | 35.8 | 36.5 | 36.9 | 90 | 48 |
 Hesse | 350 | 549 | 868 | 1,174 | 1,520.9 | 1,661.8 | 1,768.5 | 1,811.2 | 3,201 | 508 |
 Lower Saxony | 352 | 709 | 1,479 | 2,051 | 3,045.1 | 3,257.4 | 3,490.6 | 3,580.4 | 5,957 | 742 |
.svg) Mecklenburg-Vorpommern | 48 | 88 | 263 | 455 | 957.7 | 1,098.5 | 1,337.9 | 1,414.4 | 3,519 | 2,184 |
 North Rhine-Westphalia | 617 | 1,046 | 1,925 | 2,601 | 3,582.0 | 3,878.5 | 4,234.9 | 4,363.7 | 8,113 | 452 |
 Rhineland-Palatinate | 332 | 504 | 841 | 1,124 | 1,528.2 | 1,670.8 | 1,862.2 | 1,920.5 | 3,356 | 817 |
 Saarland | 67 | 100 | 158 | 218 | 318.8 | 365.4 | 407.3 | 415.8 | 738 | 751 |
 Saxony | 168 | 288 | 529 | 836 | 1,280.8 | 1,412.3 | 1,575.1 | 1,607.5 | 2,995 | 740 |
 Saxony-Anhalt | 94 | 181 | 450 | 817 | 1,377.9 | 1,556.1 | 1,828.7 | 1,962.6 | 3,891 | 1,793 |
 Schleswig-Holstein | 159 | 310 | 695 | 992 | 1,351.5 | 1,407.8 | 1,468.6 | 1,498.3 | 2,587 | 885 |
 Thuringia | 95 | 159 | 327 | 467 | 871.7 | 1,013.9 | 1,119.9 | 1,187.4 | 2,226 | 1,055 |
| Cumulative total installed | 5,979 | 9,913 | 17,554 | 23,866 | 34,076.7 | 36,710.1 | 38,236.0 | 39,332.4 | 71,259 | 856 |
| Capacity added | — | 3,934 | 7,641 | 6,312 | 10,210.7 | 2,633.4 | 1,525.9 | 1,096.4 |
 | This section needs to beupdated. Please help update this article to reflect recent events or newly available information.(June 2023) |
Some companies have collapsed since 2008, facing harsh competition from imported solar panels. Some were taken over likeBosch Solar Energy bySolarWorld. Major German solar companies include:
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