Photovoltaic expansion in Germany: The downward trend and its causes – Solar consulting, planning and construction with Solar Firma Partner

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

🏢 Decline in EEG-subsidized rooftop systems and solar parks

Particularly affected by this decline are rooftop solar installations subsidized under the Renewable Energy Sources Act (EEG) and solar parks funded through auctions. These two sectors had previously made a significant contribution to the expansion of photovoltaics in Germany. Their current decline raises questions about the development of the solar energy sector.

📉 Cooling off in the photovoltaic business

Not so long ago, business was booming for installation companies, which were overwhelmed with orders for new photovoltaic systems and home storage solutions. The rising demand was driven by the energy transition, climate targets, and financial incentives. However, a noticeable slowdown has been observed in recent months. Companies operating in the photovoltaic sector report a reluctance to invest among potential customers.

🤔 Reasons for reluctance to invest

This reluctance to invest can have various reasons. Firstly, uncertainties regarding government subsidies and the political direction in the field of renewable energies could play a role. Secondly, economic factors such as the current housing market crisis deter potential investors.

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🌬️ Competition from other renewable energies

Another factor that could affect the expansion of photovoltaics is competition from other renewable energy sources. Wind farms and hydropower projects remain important players in the energy sector. Competition between different renewable energy sources for subsidies and the best locations could lead to slower growth in the photovoltaic sector.

🌱 A glimpse into the future of photovoltaics

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

🚀 Measures to promote the expansion of photovoltaics

To promote the expansion of photovoltaics in the long term and to stimulate demand again, various measures could be taken. These include:

1. Transparent funding policy

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

2. Further development of the technology

Advances in photovoltaic technology could increase the efficiency and cost-effectiveness of solar power plants. This could help to 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. The possibility of using self-generated solar power for electromobility could be attractive to many consumers.

4. Education and Information

Public awareness campaigns about the benefits of photovoltaics and renewable energies in general could raise public awareness and increase demand.

5. Research and Development

Investments in research and development in the field of solar technology could bring about 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 component of the energy transition and climate protection. The transition to renewable energies is a global megatrend, and Germany has the opportunity to play a leading role in this field. 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 output in September 2023

The Federal Network Agency has published the capacity of newly installed photovoltaic systems for September 2023, which totals 918.6 megawatts. This is the lowest figure since February, when the installed capacity was 887 megawatts. In the following months, the monthly installation of photovoltaic systems rose steadily, consistently exceeding one gigawatt per month. However, a downward trend has been evident since August.

🌞 Photovoltaic installations in 2023

After nine months of 2023, the net installed photovoltaic capacity totaled 10,172.9 megawatts. This already exceeded the German government's target of reaching nine gigawatts of newly installed capacity by the end of the year. To achieve the ambitious goal of a cumulative installed capacity of 215 gigawatts by 2030, the monthly addition, calculated linearly, would need to be 1,578 megawatts, as determined by the Federal Network Agency. However, this figure has not been reached in any month of 2023 so far.

☀️ Total capacity and analysis

By the cut-off date 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, representing an impressive total capacity of 77.672 gigawatts.

🏠 Decline in rooftop photovoltaic systems

A detailed analysis by the Federal Network Agency shows that significantly fewer rooftop and ground-mounted photovoltaic systems were newly registered, particularly those receiving subsidies from auctions. In September, the total capacity of rooftop systems subsidized through feed-in tariffs or market premiums amounted to 666 megawatts. This is also the lowest figure since February and marks a significant decline compared to previous months, when this sector reached more than 800 megawatts, with the peak in June reaching almost 937 megawatts.

🌿 Photovoltaic open-field systems

There also appeared to be little movement in September regarding solar parks developed through tenders. The total capacity of newly registered ground-mounted photovoltaic systems that received awards amounted to only 113.5 megawatts, which is more than 100 megawatts less than in the previous month. Only in February was the increase in this sector lower, at 97.7 megawatts.

📉 A look into the future

These data illustrate that while the expansion of photovoltaics in Germany remains robust, it is showing signs of a downward trend. It remains to be seen whether an increase in monthly installations can be achieved in the coming months to meet Germany's long-term renewable energy targets.

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