A Crossroads: Alliance Demands Continued German rooftop solar support Beyond 2025
A powerful and diverse coalition of over 20 business and civil society organizations in Germany has issued a strong appeal to the federal government: do not cut subsidies for rooftop solar installations. Representing a massive constituency of over 20 million members and 50,000 companies, the alliance is urging policymakers to maintain crucial support mechanisms into 2026 to safeguard the nation’s energy transition.
The joint appeal comes as a direct response to the Federal Minister for Economic Affairs, Katherina Reiche, announcing plans to phase out subsidies for new rooftop solar systems. The alliance argues that such a move would be premature and detrimental to Germany’s climate goals.
The Case for Continued German rooftop solar support
The coalition, which includes associations from small and medium-sized enterprises (SMEs), housing, consumer protection, and the renewable energy sector, lays out a compelling case for why continued support is essential.
Their central arguments highlight that rooftop solar:
* Keeps electricity prices low: By generating power at the point of consumption, rooftop solar reduces reliance on more expensive grid electricity.
* Boosts public participation: Subsidies empower homeowners and small businesses to actively participate in and benefit from the national energy transition.
* Reduces grid pressure: When paired with modern technologies like battery storage, electric vehicles, or heat pumps, rooftop installations can significantly alleviate strain on the national grid.
Furthermore, the alliance points to the efficiency of the current system. For every kilowatt-hour (kWh) of subsidized solar power generated on a private home, approximately two kWh of unsubsidized solar are consumed on-site. This model demonstrates a high level of self-sufficiency and reduces the overall reliance on subsidies.
A Warning of a Drastic Downturn in German rooftop solar support
The call for continued support is underscored by a worrying trend. According to the alliance, new rooftop solar installations already fell by 25% in 2025. They warn that removing subsidies could cause the market to halve again, dealing a severe blow to the industry and the pace of renewable energy deployment.
Carsten Körnig, Managing Director of BSW-Solar, emphasized the critical role of the existing support. He warned that worsening conditions for solar would be “disastrous” at a time when a rapid expansion of renewables is needed more than ever. Körnig described the subsidies under the Renewable Energy Sources Act (EEG) as a “necessary safety net” for the majority of new solar customers, providing the stability needed for investment.
The alliance contends that before any phase-out is considered, a stable policy framework, including the widespread rollout of smart meters and effective market mechanisms, must be firmly in place.
As Germany navigates its ambitious energy targets, the federal government faces a critical decision. The unified voice of this broad alliance makes it clear that the future of Germany’s rooftop solar market—and the public’s role within it—hangs in the balance.
