At the end of 2023, Germany’s solar power capacity totaled 81.7 GW. ⁵

Germany targets to install 215 GW of solar panel power capacity by 2030, with 22 GW of capacity additions every year.⁶

Natural gas

In 2023, the average household gas price in Germany was $0.1755 USD. ⁷

Coal

The environmental costs of coal-fired power plants are approximately 19-21 US cents per kilowatt-hour (Ct/kWh), with lignite at nearly 19 Ct/kWh and hard coal at 17 Ct/kWh.⁸

Nuclear

As of December 2021, the cost of generating electricity from nuclear power plants in Germany was $0.02916 per kWh for extensions and $0.0432 for new plants.⁹

Solar ¹⁰

• The cost of generating solar power in Germany can be as low as $0.03996 per kWh, depending on installation type and sunlight exposure.
• In 2021, the cost was $0.043956 per kWh.
• However, total supply costs can exceed $0.0756 per kWh, depending on location and additional power needs.

Distribution of electricity generation in Germany is given below. ¹¹

The average interruption time per connected end consumer decreased to 12.20 minutes per year, a reduction of 1.71 minutes from 2018. ¹²

Current Installations ¹⁴¹³

• In 2023, Germany saw a record-breaking installation of over one million new solar power systems, bringing the total number of photovoltaic systems in the country to around 3.7 million. About half of the new systems, totaling approximately 500,000, were in the residential sector.
• Germany ranks 4th globally in residential solar installations, with a total capacity of 53,783 MW.

Projected Installations ¹⁵

Although an exact number is not available, Germany has set a goal to install 215 GW of PV capacity by 2030, with plans to triple annual expansion targets from 7.5 GW to 22 GW by 2026.

¹⁶

• Germany is estimated to have between 2,000 to 2,500 solar farms, comprising both ground-mounted and large rooftop installations with significant capacity.
• To meet its renewable energy and climate goals, Germany aims to increase its solar PV capacity, targeting 215 GW by 2030.
• Based on current growth rates and future targets, the number of solar farms is expected to rise substantially, potentially reaching 5,000 to 6,000 by 2030, assuming a mix of small, medium, and large-scale new installations.

The off-grid market demand for solar panels in Germany is relatively niche compared to grid-connected installations, given the country’s well-developed and extensive electrical grid. However, there are specific segments and scenarios where off-grid solar solutions are sought after. ^{16 17}

Current Demand

Germany’s current installed capacity of off-grid solar systems is relatively small, estimated at 50-100 MW. Off-grid solar solutions are mainly used in remote areas, such as mountainous regions and small islands in the North and Baltic Seas, due to Germany’s extensive grid coverage. These systems are used for:

• Rural and remote areas: Small off-grid systems power agricultural applications like irrigation systems, greenhouses, and remote farm buildings.
• Recreational use: Solar panels are used by caravan and RV owners to provide power while traveling, and on boats and yachts to supply electricity for onboard needs.

Projected Growth

The off-grid solar market in Germany is projected to grow at a moderate annual rate of 5-10% over the next decade, potentially reaching an installed capacity of 200-300 MW by 2034, contingent upon technological advancements and market conditions.

Sustainable Living

• There is a growing trend of eco-friendly homes and communities opting for off-grid solar solutions to reduce environmental impact and achieve energy independence.
• Increasing interest in sustainable, self-sufficient living may drive demand for off-grid solar systems.

¹⁶

Current Demand

The on-grid market demand for solar panels in Germany has experienced significant growth over the past decades.

Installed Capacity

• By the end of 2023, Germany had established itself as a global leader in solar photovoltaic (PV) installations, boasting a cumulative installed capacity of over 55 gigawatts (GW) across more than 2 million solar PV systems spanning residential, commercial, and industrial sectors.

Rooftop and Large-Scale Installations

• Residential rooftops account for a significant portion of the installed capacity, with homeowners opting for solar PV to reduce electricity bills and contribute to sustainability.
• Many businesses and industries have installed large-scale solar PV systems to meet their energy needs and reduce carbon footprints.

Projected Demand

• Germany targets a 65% share of renewable energy sources in its electricity consumption by 2030, planning to achieve this by installing an additional 30 GW of solar PV capacity, bringing the total to 85 GW by 2030.

The average salary for a Solar Installer in Germany is approximately $4,752 per month, and the average additional cash compensation is approximately $2,592 per month. ¹⁸

The current population of Germany is 83,254,890. ¹⁹

²⁰

1. Labor Costs

Skilled labor costs range from $3,360 per month to $5,600 per month.

2. Installation Cost

• In Germany, installation costs typically range from 10% to 25% of the total system price, depending on the complexity of the installation and structure.
• With an average system size of around 7.5 kilowatts, the total cost of a solar installation is approximately $25,618.
• However, after applying the federal solar tax credit, the cost is reduced to around $17,915.

3. Material Costs

Average cost of materials approximately minimum $0.224 per watt to $0.336 per watt.

4. Energy Costs

The average price of electricity for is 42.22 cents per kilowatt hour (kWh).

5. Depreciation and Maintenance

Annual costs for maintenance and depreciation of equipment range from $1.12 million to $2.24 million.

Here’s a summary of the energy infrastructure in Germany:

Electricity Generation ²¹

In 2023, Germany’s electricity mix consisted of:

• Fossil fuels: 46% (primarily coal and natural gas)
• Nuclear power: 0.7% (declining since 2005 as part of the Energiewende plan)
• Renewable energy: 19.6% (with wind power becoming the largest source of electricity, surpassing coal).

Notably, Germany’s combined share of wind and solar power is three times the global average, comparable to Spain and the Netherlands. This marks a significant milestone in Germany’s energy transition towards a more sustainable and renewable energy-based economy.

Transmission & Distribution ^{22 23}

Germany’s electricity grid is a complex network comprising:

1. Transmission grids: High-voltage networks that transport electricity over long distances.
2. Distribution grids: Local networks that supply electricity to consumers at various voltage levels, including:

• High-voltage (110 kV to 220 kV) for industrial and commercial consumers
• Medium-voltage (1 kV to 110 kV) for smaller commercial and residential consumers
• Low-voltage (230 V to 1 kV) for individual households and small businesses

This multi-layered grid system ensures reliable and efficient electricity supply to meet Germany’s diverse energy demands.

Transmission grids

Germany’s transmission grids, spanning approximately 37,000 kilometers, transport electricity at voltages of at least 220 kilovolts (kV) from power stations and wind farms to distribution systems. These grids also serve as a crucial connection to other European countries through:

• Interconnectors: High-voltage transmission lines that link Germany’s grid to neighboring countries
• Subsea cables: Underwater transmission cables that enable electricity exchange with countries separated by sea

This interconnected network facilitates cross-border electricity trade, enhancing energy security and cooperation within Europe. For example, the SuedLink project is a 700 kilometer transmission line that will carry renewable wind energy from northern Germany to the south, where there’s high demand.

Distribution grids

These grids supply electricity to consumers at high, medium, and low voltages:

Germany’s electricity distribution grid is categorized into three voltage levels:

High Voltage (60 kV to 220 kV):

• Transmits power to transformer substations in population centers and large industrial companies

Medium Voltage (6 kV to 60 kV):

• Transmits power to regional transformer substations or directly to large facilities like:
• Hospitals
• Factories

Low Voltage (230 V or 400 V):

• Transmits power to:
• Private households
• Small businesses
• Office buildings

This hierarchical structure ensures efficient and safe electricity distribution to meet the varying needs of different consumers.

Energy Access

Germany boasts a highly reliable electricity supply, with:

• Exceptionally high access to electricity
• Average power outage duration of just 12 minutes per consumer
• One of the lowest power interruption rates globally
• Status as Europe’s largest energy consumer

Germany’s robust electricity infrastructure ensures a consistent and dependable power supply, making it a leader in energy reliability and security.

The regulations surrounding solar panel production and installation in Germany focus on several key aspects:²⁴²⁵

1. Renewable Energy Sources Act (EEG): This act mandates that 80% of Germany’s energy comes from renewable sources by 2030. It ensures stable prices for power produced by renewable sources, making investment in solar energy more secure.
2. Solarpaket I (2024): The German parliament approved this legislation to promote the adoption of plugin solar installations. It increased the allowed power of these kits to 800 W and made changes to home ownership and tenancy laws, simplifying the installation process for tenants. Now, landlords or neighbors can only object to installations based on solid technical grounds.
3. Tax Incentives and VAT Reductions: Germany offers VAT incentives, with a 0% rate on solar installations, making solar panel adoption more affordable.
4. Encouragement for Urban Installations: With high urban rental rates, the law now allows tenants in apartment buildings to install solar panels without landlord vetoes, especially in cities where rentals are common.

²⁶²⁷

Government Subsidies and Financial Incentives

• Various subsidies to offset installation costs for homeowners and businesses.
• Renewable Energy Sources Act (EEG) guarantees fixed feed-in tariffs for solar electricity.
• Federal Ministry for Economic Affairs and Energy offers grants for high solar potential projects and innovative technologies.
• State-specific solar energy support measures.

Zero VAT Rate for Solar Modules and Installation

• Zero VAT rate introduced on January 1, 2023.
• Applies to single-family residential and commercial PV and battery systems up to 30 kWp.
• For multifamily and mixed-use buildings, the exemption applies up to 15 kWp per unit, limited to 100 kW per taxpayer.
• Expected to increase solar installations by 20% in 2023.

Solar strom bonus (Feed-in Tariff for Solar Power)

• Introduced in 2009, valid until 2029.
• Declining tariff to encourage solar power development and maintain affordable electricity costs.
• Accounted for 60% of solar power revenue in 2020.
• Administered by the Federal Network Agency, with state-specific variations in rates and eligibility.

Solar PLUS – Photovoltaic Funding for Berlin

• Grants for purchasing and installing solar systems, as well as solar energy storage.
• Available to individuals, businesses, and community organizations.

Renewable energy policy reforms

In April 2022, the government released the „Easter Package“ of reforms that aim to increase the share of renewables in electricity production to 80% by 2030 and 100% by 2035. This means that the country needs to install 215 GW of solar capacity by 2030, which requires annual expansion volumes of more than 20 GW.

Solar Package I

• Approved in August 2023, this package aims to speed up solar panel installation and increase citizen participation. It includes measures to:
• Allow funding for solar power plants on open areas with a capacity of up to 50 MW, compared to 20 MW previously
• Simplify the process for connecting solar facilities to the power grid, expanding it from systems up to 10.8 kWp to systems up to 30 kWp
• Introduce a separate auction segment for special solar systems like agri-PV, floating solar, and carport installations

Climate Law

This law sets out a framework for Germany to reach net zero emissions by 2045, which includes increasing the share of renewable energy in the electricity supply to 80% by 2030 and 100% by 2035.

Energiewende

This policy, which translates to „energy turnaround“, is Germany’s ongoing transition to a more environmentally sound, reliable, and affordable energy supply.

²⁸

Facility	Brief description	Installed capacity, MW	Year of commissioning
Solar park Weesow-Willmersdorf	The largest solar project built in the federal state of Brandenburg with the participation of the energy company EnBW Energie Baden-Württemberg.	187	2020
Solar park Alttrebbin	The solar park is located in eastern Brandenburg on an area of around 149 hectares. The solar power plant has an installed capacity of 150 MW under standardized conditions. 345,000 crystalline solar PV modules of 390 W each were used. This PV project by EnBW is based on the same engineering solutions as the Gottesgabe solar park.	150	2022
Solar park Gottespark	The solar power plant is located about 60 km east of Berlin. It covers an area of 133 hectares, of which 122 hectares are built built with PV panels. Like the nearby solar power project in Alttrebbin, which was being implemented by EnBW at the same time, the Gottesgabe solar park is being built without the support of the Renewable Energy Sources Act.	150	2022
Solar komplex Senftenberg	A large solar power plant near Senftenberg and Shipkau in Brandenburg, which was commissioned on September 24, 2011. The solar complex, consisting of the Schipkau Solar Park (72 MW) and the Senftenberg I (18 MW), II and III (78 MW) solar parks, was built on the tailings of the former Tagebau Meuro open pit coal mine. The solar park consists of 636 thousand solar PV modules. At the time of commissioning, it was the largest solar complex in Germany.	148	2011
Solar park Neuhardenberg	The solar park consists of several separate facilities with a total installed capacity of 145 MW. The annual expected energy production is about 140 GWh, which corresponds to the average electricity consumption of 48,000 German households. The investors of the project were ENERPARC, ecos-energy, MEP Asset Management and BaySolar under the project management of ENFO AG.	145	2012

Notable solar projects in the country (Projected) ²⁹

Verbund Visiolar Germany Solar PV Park

• Project Name: Verbund Visiolar Germany Solar PV Park
• Commissioning Date: Expected to enter commercial operation in 2024
• Location: Germany
• Details: A 2,000 MW Solar PV project in the announced stage, developed by Visiolar and Verbund.

LEAG Holding Solar PV Park

• Project Name: LEAG Holding Solar PV Park
• Commissioning Date: Expected to come online by 2026
• Location: Germany
• Details: A 1,000 MW Solar PV project in the permitting stage, developed by LEAG Holding.

Witznitz Energy Solar PV Park

• Project Name: Witznitz Energy Solar PV Park
• Commissioning Date: Expected to be operational in 2025
• Location: Saxony, Germany
• Details: A 650 MW Solar PV project under construction, owned by HANSAINVEST Real Assets.

Sunfarming Agro-Solar PV Park

• Project Name: Sunfarming Agro-Solar PV Park
• Commissioning Date: Expected completion by 2027
• Location: Brandenburg, Germany
• Details: A 500 MW Solar PV project in the announced stage, developed by SUNfarming.

BEE UKA Solar PV Park

• Project Name: BEE UKA Solar PV Park
• Commissioning Date: Expected to be commissioned by 2028
• Location: Germany

Details: A 500 MW Solar PV project in the announced stage, developed by Umweltgerechte Kraftanlagen and BEE Development.

1. MVV Energie AG

Website: mvv.de

Headquarters: Mannheim, Baden-Wurttemberg, Germany

Founded: 1974

Headcount: 5001-10000

LinkedIn

• de is a company that offers energy solutions and services to private and commercial customers.
• They specialize in providing green energy options, such as solar and wind power, and offer energy-saving tips to help customers reduce their consumption.
• They also operate and maintain infrastructure for street lighting, water management, and waste disposal.
• With a focus on sustainability and innovation, MVV.de aims to be a leading provider of clean and efficient energy solutions.

2. Sonnen GmbH

Website: sonnen.de

Headquarters: Wildpoldsried, Bavaria, Germany

Founded: 2010

Headcount: 501-1000

LinkedIn

• de offers intelligent energy solutions for a clean energy future.
• Their packages combine smart products to provide solutions for backup power, electric mobility, and high performance needs.
• With their sonnenBatterie, a clean, fair, and affordable energy supply is made possible for all. They aim to help individuals become independent from traditional energy providers and be part of a new movement towards sustainable energy.

3. EnviaM-Gruppe

Website: enviam-gruppe.de

 Headquarters: Chemnitz, Sachsen, Germany

Founded: 2002

Headcount: 1001-5000

LinkedIn

• Enviam-Gruppe is a company that specializes in renewable energy solutions, with a focus on the installation of bifacial solar cells.
• They offer efficient energy solutions for residential buildings, such as flat roofs, carports, and terraced roofs, by harnessing solar energy and providing green energy for homes.

4. ABO Wind

Website: abo-wind.com

Headquarters: Wiesbaden, Midi-Pyrenees, Germany

Founded: 1996

Headcount: 501-1000

LinkedIn

• ABO Wind is a company that specializes in the development and construction of renewable energy projects.
• They offer services in wind, solar, battery, and hydrogen energy.
• With a focus on sustainability, ABO Wind provides innovative solutions for the transition to a clean energy future.

5. ib vogt GmbH

Website: ibvogt.com

Headquarters: Berlin, Berlin, Germany

Founded: 2002

Headcount: 501-1000

Latest funding type: Debt Financing

LinkedIn

• ib vogt is a project developer and contractor in the solar power industry.
• They specialize in the construction and operation of large-scale solar power plants, with a focus on the Middle East, North Africa, and Sub-Sahara region.
• Their projects in the Benban solar complex in Egypt highlight their expertise in dealing with extreme desert conditions.
• They offer comprehensive services from initial development to post-installation maintenance.