Photovoltaic expansion in Germany: The downward trend and its causes – solar consulting, planning and construction with solar company partners

Photovoltaic expansion in Germany fell below the gigawatt mark in September for the first time in a long time. The Federal Network Agency announced that 919 megawatts of newly installed photovoltaic capacity were recorded in September. This represents the lowest value since February and signals a noticeable decline in the photovoltaics sector.

🏢 Decline in EEG-subsidized roof systems and solar parks

Rooftop systems supported by the EEG and solar parks supported through tenders are particularly affected by this decline. These two areas had made a significant contribution to the expansion of photovoltaics in Germany in the past. The fact that they are now declining raises questions about the development of the solar energy sector.

📉 Cooling down in the photovoltaics business

Not so long ago, business was booming for installation companies who could hardly save themselves from orders for new photovoltaic systems and home storage systems. The increasing demand was driven by the energy transition, climate targets and financial incentives. But there has been a noticeable slowdown in recent months. Companies active in the photovoltaics sector report that potential customers are reluctant to invest.

🤔 Reasons for reluctance to invest

This reluctance to invest can have various reasons. On the one hand, uncertainties regarding government subsidies and the political direction in the area of ​​renewable energies could play a role. On the other hand, economic factors such as the current housing market crisis act as a deterrent for potential investors.

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🌬️ Competition from other renewable energies

Another factor that could impact the expansion of photovoltaics is competition from other renewable energies. Wind turbines and hydropower projects remain important players in the energy sector. The competition between different renewable energies for funding and the best location could lead to the photovoltaic sector growing less strongly.

🌱 Looking into the future of photovoltaics

However, it is important to emphasize that the decline in photovoltaic expansion does not necessarily represent a long-term trend reversal. Solar energy remains a crucial pillar in the energy transition, and the federal government has set ambitious goals for the expansion of renewable energies. It is entirely possible that the current decline is just a temporary phase.

🚀 Measures to promote the expansion of photovoltaics

In order to promote the expansion of photovoltaics in the long term and to stimulate demand again, various measures could be taken. This includes:

1. Transparent funding policy

A clear and long-term funding policy from the federal government could strengthen the trust of investors and customers. This would help reduce uncertainty.

2. Advancement of technology

Advances in photovoltaic technology could increase the efficiency and cost-effectiveness of solar systems. This could help increase the attractiveness of photovoltaics as an energy source.

3. Expansion of the charging infrastructure for electric vehicles

Linking photovoltaic systems with electric vehicles and charging stations could create an additional incentive effect. The possibility of using self-generated solar power for electromobility could be attractive for many consumers.

4. Education and information

Education campaigns about the benefits of photovoltaics and renewable energy in general could increase public awareness and increase demand.

5. Research and development

Investing in research and development in solar technology could generate new innovations and drive the industry forward.

🌍 The role of photovoltaics in the energy transition

It is crucial to view the photovoltaic sector as an integral part of the energy transition and climate protection. The transition to renewable energy is a global megatrend and Germany has the opportunity to play a leading role in this area. The current challenges should serve as an incentive to further advance photovoltaics and achieve the goals for a sustainable energy future.

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📊 Photovoltaic performance in September 2023

The Federal Network Agency has published the output of the newly installed photovoltaic systems for the month of September 2023 and it amounts to 918.6 megawatts. This represents the lowest value since February, when expansion was 887 megawatts. In the following months, the monthly installation of photovoltaic systems increased continuously and consistently exceeded the mark of one gigawatt per month. However, a downward trend has been evident since August.

🌞 Photovoltaic expansion in 2023

After nine months in 2023, the net added photovoltaic capacity totals 10,172.9 megawatts. This means that the federal government's goal of achieving nine gigawatts of newly installed capacity by the end of the year has already been exceeded. In view of the ambitious goal of a cumulative installed capacity of 215 gigawatts by 2030, the monthly addition would have to be 1,578 megawatts in linear terms, as determined by the Federal Network Agency. However, this value has not yet been reached in any month in 2023.

☀️ Total capacity and analysis

By the deadline of the Federal Network Agency's evaluation on October 18, 2023, a total of more than 3.45 million photovoltaic systems had been installed in Germany, which together accounted for an impressive total capacity of 77,672 gigawatts.

🏠 Decline in photovoltaic roof systems

A detailed analysis by the Federal Network Agency shows that, in particular, fewer photovoltaic roof systems and ground-mounted photovoltaic systems were newly reported with surcharges from the tenders. In September, the output of the rooftop systems, which were supported through feed-in tariffs or market premiums, totaled 666 megawatts. This also represents the lowest level since February and marks a significant decline compared to previous months, when this sector reached more than 800 megawatts, with the peak reaching almost 937 megawatts in June.

🌿 Photovoltaic open-space systems

There also seemed to be little movement in September regarding the solar parks that were created as part of tenders. The total output of the newly reported ground-mounted photovoltaic systems with surcharges was only 113.5 megawatts, which is more than 100 megawatts less than in the previous month. Only in February was the increase in this area even lower at 97.7 megawatts.

📉 Outlook for the future

These data make it clear that photovoltaic expansion in Germany remains robust, but shows signs of a declining trend. It remains to be seen whether an increase in monthly additions can be achieved in the coming months in order to achieve the long-term goals for renewable energy in Germany.

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