The energy transformation with photovoltaics in Germany: a comprehensive look at progress and challenges
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Published on: March 19, 2025 / update from: March 19, 2025 - Author: Konrad Wolfenstein

The energy transformation with photovoltaics in Germany: a comprehensive look at progress and challenges - Image: Xpert.digital
The focus on solar energy: opportunities and obstacles to the energy transition
Photovoltaics in Germany: growth, problems and perspectives
Germany is located in the middle of a remarkable transformation of its energy supply, in which the photovoltaic (PV), i.e. the conversion of sunlight into electricity, takes on a key role. The latest data from the Federal Network Agency and numerous reports on new solar energy projects, from gigantic solar parks to small systems on balconies, impressively demonstrate the enormous growth of this technology. This upswing is no coincidence, but the result of ambitious political goals, continuously falling costs for solar technology and growing consciousness among the population for the need for renewable energies in the fight against climate change.
However, despite this impressive dynamic, we still face considerable challenges in Germany that could slow down the further expansion of photovoltaics. This includes the increasing shortage of suitable areas for solar systems, concerns about the safety of battery storage that are becoming increasingly important, complex and lengthy approval processes and the growing competition for the use of land between nature conservation, agriculture and the energy transition. This detailed report takes a close look at the current developments and challenges of photovoltaics in Germany and examines the crucial role that this technology will play for the future energy supply of our country.
An unprecedented increase in solar power generation: numbers, facts and milestones
The year 2024 marked a historical turning point for photovoltaics in Germany. The official figures of the Federal Network Agency confirm an exceptional expansion of the installed solar performance. The performance has increased by impressive 16.2 gigawatts (GW), so that Germany now has a total capacity of 99.3 GW. This massive growth contributed significantly to the fact that the entire installed performance from renewable energies in Germany increased by almost 20 GW to a total of 190 GW. It should be emphasized that the addition of solar power significantly exceeded the addition of wind turbines on land (2.5 GW) and at sea (0.7 GW). This underlines the central importance of photovoltaics as a driving force of the energy transition in Germany.
Reaching the brand of almost 100 GW installed solar power is an important milestone on the way to the long -term climate boards of the federal government. These goals are stipulated in the Renewable Energy Sources Act (EEG) and provide for an installed photovoltaic performance of 215 GW by 2030. This ambitious requirement illustrates the political will to make solar energy a cornerstone of German energy supply.
In the course of 2024, more than a million new solar systems were put into operation in Germany. This enormous number of installations, which amounts to the aforementioned 16.2 GW new performance in total, shows the broad acceptance and dynamics of photovoltaic expansion across the country. It is not only the sheer number of systems, but also the variety of installations that make this trend so remarkable. From large solar parks that cover entire areas, to small, but numerous balcony power plants that are increasingly to be found in cities - photovoltaics literally conquer the whole country.
This trend continued in February 2025. The net expansion of PV performance was 1,535 megawatts (MW) this month. Although this monthly increase is already a considerable performance, analyzes show that this value is still below the monthly extension in order to actually achieve the target of 215 GW by 2030. This means that the expansion rate has to be increased even further in the coming years in order not only to proclaim the ambitious goals, but also to make reality. So further efforts, political course and social engagement are required to promote solar energy to the extent that is necessary for a successful energy transition.
In order to better illustrate the development of photovoltaics in recent years, it is worth taking a look at the annual added figures. In 2019, 3,780 megawatts (MW) were added to photovoltaic performance, in 2020 this value rose to 4,890 MW, and in 2021 the extension was already 5,260 MW. The trend continued, because in 2022 there were a remarkable 7,480 MW. The years 2023 and 2024 are particularly noteworthy, in which the additions reached a real boom with 15,900 MW and 16,200 MW. The number for 2023 can vary slightly depending on the source, but it explains the strong upward trend.
This exponential increase in photovoltaic creation impressively shows the dynamics of the solar industry in recent years. The impressive developments from 2023 and 2024 mark a turning point and underline the urgency to continuously use this swing. Despite this success story, the energy transition remains an immense challenge that must not be lost from the sight. This positive trend can only be transferred to a sustainable future through persistent efforts and effective measures.
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A multifaceted expansion: growth in all segments of photovoltaics
The expansion of photovoltaics in Germany is by no means limited to a single area. It extends over different system sizes and installation types and thus shows the versatility and adaptability of this technology. In 2024, about two thirds of the newly installed solar power were built on facilities that were built on house roofs or on building facades. This high proportion of roofing systems underlines that the use of existing building infrastructure is still a load-bearing pillar of the PV expansion. The existing funding programs that offer attractive feed -in tariffs and the increasing possibility of self -supply with solar power are decisive factors that contribute to this development. Homeowners are increasingly recognizing the double benefits of solar systems: they make a contribution to environmental protection and at the same time reduce their own energy costs.
Another important trend, which has increased more and more in recent years, is the significant increase in the so-called balcony power plants or plug solar devices. These mini-PV systems, which can easily be installed on balconies or terraces and feed the electricity that is created directly into the house network, enjoy growing popularity. In 2024, around 435,000 such balcony power plants were registered in the market master's data register of the Federal Network Agency. With a total of 0.4 GW, these systems contributed to the newly installed solar power and made up 2.6 percent of the total solar train. Compared to the previous year, in which the proportion was still 1.5 percent, there is a dynamic development that impressively reflects the growing interest of private individuals in their own decentralized electricity generation. This trend continued in February 2025, with over 21,000 newly installed balcony power plants. These figures show that photovoltaics are no longer just a topic for large energy companies or farmers, but has arrived in the middle of society. Citizens themselves become active actors of the energy transition.
In addition to the decentralized systems on roofs and balconies, open space systems also play an increasingly important role in the large -scale expansion of photovoltaics. These large solar parks, which are often built on former arable land, industrial throats or conversion areas, can generate considerable amounts of electricity in a short time and are therefore indispensable in order to achieve the ambitious expansion goals. In February 2025, the largest proportion of monthly additions on open space systems were eliminated at 967 MW. The commissioning of Germany's largest solar system in Saxony in Saxony in spring 2024 underlines the importance of these major projects for achieving the expansion goals. The growing relevance of open space systems could also be a reaction to the increasing challenge of space availability for roofing systems in densely populated areas. In cities and metropolitan areas, the roof areas are often limited or used for other purposes, so that open space systems outside the cities are becoming increasingly important in order to meet the need for solar power.
Regional dynamics: where solar energy in Germany is particularly booming
The distribution of photovoltaic installations is very different in Germany. This is related to various factors, such as sunlight, the availability of suitable areas, the local political framework and the economic structure of the respective region. In 2024, Bayern recorded the highest newly installed solar performance with 4.0 GW. This value underlines Bavaria's pioneering role in the area of renewable energies. Bavaria benefits from comparatively high sunlight and has operated an active policy to promote renewable energies in the past.
However, if you look at the installed PV performance per head of the population, another picture arises. Brandenburg leads the federal state comparison with 2,565 watts per inhabitant. This high value indicates intensive use of the existing potential in this region. Brandenburg, which is colonized in terms of large and sparsely in space, has large, unused areas that are ideal for the construction of solar parks. In addition, the country has promoted investments in renewable energies in recent years.
In February 2025, the greatest dynamic in photovoltaic planning showed itself in Saxony, with a growth of the installed performance of 5.7 percent since the beginning of the year. The commissioning of the largest solar system in Germany in Saxony the year before could have contributed to this development. Saxony, which is traditionally an industrial location, is currently experiencing a structural change and increasingly relies on promising industries such as renewable energies.
These regional differences in the expansion speed and the installed capacity reflect Germany's diversity. Each region has its own strengths and challenges when it comes to expanding photovoltaics. Because of their geographical location or political orientation, some federal states are better suited for the expansion of solar energy than others. It is important to take these regional differences into account and develop tailor -made strategies in order to exploit the full potential of photovoltaics throughout Germany.
Overcoming the obstacles: challenges for sustainable growth of solar energy
Despite the impressive success in the expansion of photovoltaics in Germany, the challenges must not be neglected that could hinder a sustainable and long -term growth of this technology. These challenges are diverse and range from space availability to security concerns to bureaucratic hurdles.
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The scarcity of suitable areas: a growing problem
The search for suitable areas for the further expansion of photovoltaics is an increasing challenge. With the increased focus on open space systems, which became particularly clear in February 2025, the competition for land resources is tightened. This leads to conflicts with other usage claims, especially in terms of agriculture and nature conservation. Farmers need arable land for growing food, and conservationists warn of the loss of valuable habitats through the construction of solar parks.
The discussion about the use of golf courses for solar systems illustrates the weighing up between leisure interests and the need to mobilize areas for the energy transition. Golf courses are often large, unsealed areas that could potentially be used for solar energy. However, such suggestions often encounter resistance from golf course operators and users who do not want to restrict their leisure activities.
In order to minimize these conflicts, comprehensive and transparent spatial planning is required, which takes into account both the needs of the PV expansion as well as the ecological and social issues. Criteria must be developed that determine which areas are suitable for solar systems and which are not. Ecological aspects, such as the protection of biodiversity and landscape, should be taken into account as well as social aspects, such as the acceptance of the population and the effects on agriculture.
Strategies such as Agri-Photovoltaic, which enables simultaneous use of areas for agriculture and electricity generation, could be a promising solution here. In the Agri-Photovoltaic, solar modules are installed so that the area underneath can continue to be used for agriculture. This can be achieved by increasing the modules or by using transparent modules. Agri-Photovoltaic offers the advantage that it reduces the space competition and at the same time creates synergy effects between agriculture and energy industry.
Safety concerns for battery storage: an important aspect of the energy transition
The increasing number of photovoltaic systems combined with battery stores raises questions about the safety of these storage technologies. Battery stores are an essential part of a future -proof energy supply, as they enable the solar power generated even if the sun does not shine. They contribute to the network stability and enable a higher self -consumption rate of solar power.
Although battery stores offer many advantages, there are potential risks in connection with the thermal stability and the fire risk of lithium-ion batteries, which currently represent the most widespread storage technology. Lithium-ion batteries can overheat when overloading, deep discharge or damage. Such fires are often difficult to extinguish and can release toxic gases.
The commissioning of large battery stores, such as the memory, which was realized in Hamm shortly before the turn of the year 2024, therefore requires strict safety precautions and compliance with high technical standards. Fire protection measures must be taken, such as the installation of fire alarm systems, sprinkler systems and fire -proof housings. In addition, operators and maintenance staff must be trained extensively in order to recognize and master potential risks.
In order to ensure the acceptance and the safe use of battery storage, continuous research and development in the field of battery technology are essential. New battery technologies must be developed that are more secure, durable and environmentally friendly than the current lithium-ion batteries. The establishment of comprehensive security standards and transparent information for the public is also crucial to create trust in storage technology and to disclose concerns.
Difficulties in planning and approval: Bureaucracy as the brake of the energy transition
The planning and approval of photovoltaic systems, especially larger projects, can be a lengthy and complex process in Germany. Although the Federal Network Agency for 2024 recorded a record for the permits for wind turbines on land, the discrepancy between granted permits and actual addition to possible bottlenecks indicates in the further process. Similar challenges could also occur when expanding photovoltaics.
Local resistance, complex environmental exams and lengthy coordination processes between various authorities can delay or even prevent the implementation of PV systems. Citizens' initiatives often protest against the construction of solar parks in their neighborhood, for fear of noise pollution, impairment of the landscape or loss of value of their real estate. Environmental exams can be very complex and often require expert reports from various experts. The coordination processes between municipalities, counties, government districts and state authorities can run into the length and lead to unnecessary delays.
An acceleration and simplification of the planning and approval procedures without neglecting environmental and residents' interests is crucial to drive the expansion of photovoltaics at the required pace. Clear and uniform approval guidelines, lean administrative procedures and better coordination between the various authorities are required. Early integration of the public and transparent communication are also important in order to create acceptance for PV projects and to reduce resistance.
Potential challenges in the area of performance information: transparency and consumer protection
The correct and transparent range of services of PV systems is an important aspect for the trust of consumers and the integrity of the market. Buyers of solar systems must be able to rely on the fact that the specified performance data corresponds to the truth and that the system actually produces the expected amount of electricity.
Compliance with standards and standards when specifying nominal output and the actual energy generation of PV systems is therefore crucial. There are international standards that determine how the performance of solar modules must be measured and specified. These standards ensure fair comparability of different products and protect consumers from misleading information.
It is important that manufacturers and retailers from PV systems adhere to these standards and that the performance information is communicated clearly and clearly. Before buying a solar system, consumers should find out more about the performance data and, if necessary, consult independent experts. Even increased controls and clear regulation in this area could help strengthen trust in technology and to protect the market from dubious providers.
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Solar energy in numbers: How photovoltaics drives Germany's industry
The economic importance of photovoltaics in Germany: more than just green energy
Photovoltaics is not only an important building block for the energy transition and climate protection, but also an important economic factor for Germany. The expansion of solar energy creates jobs, generates investments and contributes to strengthening domestic industry.
Investment trends and market dynamics: a boom market on the upper
Investments in new photovoltaic systems in Germany achieved considerable 17.2 billion euros in 2023. This value represents an increase of 123 percent compared to the previous year and underlines the enormous economic interest in the expansion of solar energy. The significant increase in investments indicates a positive market development and the trust of investors in the future viability of photovoltaics. Investors are increasingly recognizing the chances of return that the solar market offers and are ready to invest large sums in new projects.
In addition, the company generated economic impulses of 1.85 billion euros in 2023. These figures illustrate the growing importance of photovoltaics not only for energy supply, but also for the German economy. Solar energy has long since become an important industry that makes a significant contribution to the gross domestic product and creates numerous jobs.
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Contribution to electricity generation and market value: solar energy as a load -bearing pillar of the power supply
In 2024, photovoltaic systems fueled a total of 63.3 terawatt hours (TWH) electricity into the German power grid. This corresponds to a proportion of 14 percent of gross electricity consumption. Compared to the previous year, in which the PV feed-in was 55.7 TWH, there is a significant increase, which is largely due to the expansion of the installed performance and the above-average many hours of sunshine in summer. Photovoltaics thus make an increasingly important contribution to covering the German electricity requirements and reducing the dependency on fossil fuels.
It is expected that the market value factor for PV current will drop in the medium term, since the range of electricity from renewable energies increases at the time of high feed-in. This effect, known as the “Merit order effect”, is a natural result of the success of renewable energies. The more solar power is fed into the network, the lower the need for more expensive, conventional power plants, which tends to lead to lower electricity prices on the stock exchange. However, this also underlines the need for memory solutions and flexible loads in order to optimally use the generated solar power and also make it available in times of lower sunlight or at night. Intelligent power grids that better match the supply and demand will also play a crucial role in ensuring the value of the solar power in the long term.
In order to illustrate the development of solar power generation over time, the annual values and their share in the entire generation of electricity are clear. In 2019, the generation of electricity from photovoltaics was 41.7 TWh, followed by 45.5 TWh in 2020 and 45.3 TWh in 2021. 2022, the production rose significantly to 54.3 TWh, while in 2023 a slight decrease to 53.5 TWh was recorded. For 2024, a value between 59.8 and 63.3 TWH is specified, which represents a proportion of 14 % in the total electricity generation of the country. This deviation in the values is based on different sources, but is due to the strong expansion of photovoltaics and sunny conditions. The constant increase in absolute electricity generation from solar systems not only illustrates the increasing importance of solar energy for the German power supply, but also its significant contribution to the decarbonization of the energy system. The proportion of photovoltaics in the national electricity mix will continue to rise and a key role in the climate -friendly energy future will play.
Minor remuneration and tenders: the state funding of solar energy
The economic attractiveness of photovoltaic systems is significantly influenced by state funding. Germany has used various funding instruments in recent decades to promote the expansion of renewable energies, including photovoltaics. A central instrument was and is the feed -in tariff.
For small roof systems with self -consumption that were put into operation by January 31, 2025, the feed -in tariff is up to 8.03 ct/kWh for a period of 20 years depending on the system size. This guaranteed remuneration for the solar power fed into the network creates planning security for private and commercial investors and makes solar systems economically attractive. The amount of the feed -in tariff is regularly adapted and tended to reduce the costs of the promotion of renewable energies and to focus more on the market value of the solar power.
For larger open space systems and certain roof systems, the funding is usually carried out by tenders from the Federal Network Agency. Various project developers compete for funding in these tenders. The surcharge usually receives the one who offers the lowest price per kilowatt hour offered electricity. This competitive procedure is intended to help reduce the costs of the promotion of renewable energies and to make the expansion efficiently.
The maximum value for the tenders for solar systems in the first segment was set for the bid dates in 2025 at 6.80 cents per kilowatt hour. This value indicates the maximum price that project developers can offer to get a surcharge. The tenders have proven to be an effective instrument to promote the expansion of large solar parks and at the same time keep the costs under control.
The combination of feed -in tariffs for smaller systems and tenders for larger projects has created a stable and attractive investment environment for photovoltaics in Germany. However, these funding instruments are not static, but are continuously developed and adapted to the changing market conditions. Politics faces the challenge of designing the funding in such a way that it ensures the further expansion of photovoltaics on the one hand and, on the other hand, keeps the costs for consumers and the state treasury within the limits.
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View of the future: development perspectives and considerations for solar energy
Photovoltaics in Germany are at a crucial point. The previous successes have been impressive, but the ambitious goals for the future require further efforts and innovative approaches. It is important to overcome the existing challenges and to fully exploit the potential of solar energy.
Progress in the direction of the renewable energy goals: an ambitious path
The Federal Government pursues ambitious goals for the expansion of photovoltaics as part of its extensive energy transition strategy. By 2030, the installed output should increase to 215 GW and even 400 GW by 2040. These goals are an integral part of the plan to make Germany climate -neutral by the middle of the century and drastically reduce the dependence on fossil fuels.
In order to achieve these goals, a massive expansion of photovoltaics in the coming years is required. The annual net expansion should climb to a maximum of 22 GW by 2026. This expansion rate is significantly higher than the values achieved in recent years and requires considerable efforts from everyone involved - politics, business and society.
However, the extension in February 2025 was below the required path to achieve the 2030 goal, which indicates that the expansion efforts must be further intensified. There is still a long way to go to achieve the goals set. This requires a continuous review of the strategies, an adaptation of the framework conditions and a determined actions of all actors.
With a forecast gross current consumption of 658 TWH in 2030, the planned PV expansion is to lead to a solar power share of around 30 percent, while renewable energies should reach a total of 80 percent. These figures illustrate the central role that photovoltaics are in Germany's future energy system. It is intended to become a load -bearing pillar of the power supply and make a significant contribution to achieving the climate goals.
Potential approaches and strategies: innovation and foresight are required
Various solutions and strategies are conceivable in order to cope with the challenges of the further PV expansion and achieve the ambitious goals. A bundle of measures that cover different areas and are coordinated is required.
In the area of land use, innovative concepts such as the Agri-Photovoltaic or the use of conversion areas and infrastructure corridors could play a greater role. As already mentioned, Agri-Photovoltaic enables the double use of areas for agriculture and electricity generation and thus reduces the area competition. Conversion areas, such as former military grounds or industrial wasteland, often offer unused potential for solar systems and can help protect valuable natural areas. The use of infrastructure corridors, such as along motorways or train lines, could also be a way to open up additional areas for photovoltaics.
The safety of battery storage can be further improved by continuous research and development, establishment of strict security standards and comprehensive information from the public. The development of new, safer battery technologies is an important research area. The standardization of safety requirements and test methods for battery storage is also crucial to minimize risks. Transparent communication about the safety of battery storage and a comprehensive clarification of the population can help to remove concerns and increase the acceptance of this technology.
In the planning and approval of PV systems, simplification and acceleration of the procedures is crucial, taking environmental and residents' interests into account. The bureaucracy must be dismantled without neglecting important protection interests. Digital approval procedures, clear deadlines and better coordination between the authorities can help accelerate the approval processes. Early integration of the public and transparent communication are also important to avoid conflicts and to create acceptance for PV projects.
In addition, measures for quality assurance and to guarantee correct performance information could strengthen trust in the technology. Independent test points, certifications and clear labeling obligations can help to secure the quality of PV systems and to protect consumers from dubious providers. The promotion of further training and qualification in the solar industry is also important to ensure that installation and maintenance of PV systems are carried out professionally.
Adaptation of politics and technological progress: flexibility and innovation as success factors
The framework for the expansion of photovoltaics must be continuously adapted to the changing market conditions and technological developments. The energy transition is a dynamic process that requires constant adjustments.
This applies, for example, the design of the funding instruments and the consideration of the falling market value factor for solar power. The feed -in tariff and the tenders must be further developed in such a way that they continue to create incentives for investments in photovoltaics, but at the same time keep the costs for consumers and the state treasury. The integration of storage into the funding programs could also be a way to increase the self -consumption of solar power and improve network stability.
Technological advances in areas such as highly efficient solar cells, innovative storage solutions and intelligent networks will also play an important role in the future development of photovoltaics. Research and development in the solar industry is an important innovation engine. New solar cell technologies, such as perovskit solar cells or tandem solar cells, promise higher efficiency and lower costs. Innovative storage solutions, such as solid-state batteries or power-to-gas technologies, could revolutionize the storage and use of solar power. Intelligent networks based on digital technologies enable better control and optimization of the energy system and can help to optimally integrate the solar power into the network.
Photovoltaics as the key to Germany's sustainable energy supply
The expansion of photovoltaics in Germany has developed a remarkable dynamic in recent years and makes a significant contribution to the energy transition. The current figures of the Federal Network Agency and the numerous project reports impressively prove this trend. Solar energy is well on the way to becoming a load -bearing pillar of German energy supply and making a decisive contribution to achieving the climate goals.
At the same time, the further expansion is offset by considerable challenges, which range from the availability of suitable areas to security concerns to complex planning procedures. These challenges must not be underestimated, but they can be solved if everyone involved pulls together and innovative solutions are developed.
In order to achieve the ambitious goals of the Federal Government and to establish photovoltaics as a load -bearing pillar of a sustainable energy supply, continuous effort, innovative solutions and a consistent further development of the political and regulatory framework are required. It is a marathon run, not a sprint, but the path is clearly prescribed and the direction is right.
The potential of photovoltaics are immense, and their consistent use is a crucial building block for a successful energy transition in Germany. Solar energy is not only an environmentally friendly and climate -friendly energy source, but also an important economic factor and an engine for innovation and technological progress. Germany has the chance to use photovoltaics to take a pioneering role in the area of renewable energies and to make an important contribution to the global fight against climate change. It is now up to us to take this opportunity and successfully continue the solar revolution in Germany.
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Xpert.Digital - Konrad Wolfenstein
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