Germany

2024 Country Update

Balcony power plants in a terraced housing estate (© embeki – stock.adobe.com)

National PV Policy

In Germany, the switch to renewable energies is being driven forward, with photovoltaics (PV) playing a central role. In May 2024, the law amending the Renewable Energy Sources Act (EEG) and other energy industry regulations to increase the expansion of photovoltaic energy generation—known as ‘Solar Package 1’— came into force. The German government's solar package simplifies the construction and operation of photovoltaic systems and acceler-ates the expansion of solar energy.

One component is the greatly simplified commissioning of balcony solar power plants with 800 to 1 000 W power each. Currently, around 730 000 of them are already in operation. This high number shows that PV has reached the centre of society and enjoys a high level of social acceptance.

Solar Panels on Balcony of Residential Apartment Building (© Maryana – stock.adobe.com)

By 2035, the German electricity supply should be almost climate-neutral, i.e. nearly completely powered by renewable energies and green hydrogen. The German government has therefore decided to increase the share of renewable energies in Germany’s (gross) electricity consumption to over 80% in 2030. To this end, the Renewable Energy Sources Act (EEG) provides for 215 gigawatts of installed photovoltaic (PV) capacity in 2030. This means that the annual expansion of photovoltaics needs to increase up to 22 GW within just a few years. With a further increase in newly installed PV systems, the total installed capacity has already reached the 100 GW mark by the end of 2024 (see Fig. 1).

So, Germany is well on the way to achieving its solar goals. This is also reflected in the consistently high participation in the Federal Network Agency’s tendering rounds for ground-mounted PV systems. The tender volumes of 2 GW each in July and December were oversubscribed twice, and the average award values determined were again only 5.05 eurocent/kWh and 4.75 eurocent/kWh, respectively. The total tender volume in 2024 was 7.3 GW for ground-mounted and rooftop systems together.

This strong expansion is sensible and necessary, as photovoltaics is one of the cheapest sources of energy and therefore one of the most important sources of electricity generation in the future.

Development of annual PV installations and cumulated installed capacity
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Research, Development and Demonstration

For many years, industry-related applied energy research has been supported by specific funding programmes (see Fig. 2 for granted PV projects under the Federal Energy Research Programmes – ERP).

The funding announcement for the most recent 8th Energy Research Programme for applied energy research, entitled ‘Research Contracts for the Energy Transition,’ has been in force since April 2024. It sets out the objectives and priorities for research funding in the coming years.

For the first time, the BMWK is pursuing a mission-oriented research and innovation policy. The focus is on cross-sector and cross-thematic project funding that is targeted at specific and ambitious goals. In this way, research results should contribute to accelerating the transformation of the energy system and be put into practice quickly.

Figure 2: R&D support and quantity of PV projects funded by BMWK in the 6th and 7th ERP

The five missions of the BMWK’s energy research programme are:

  • Mission Energy System 2045: Research for a resilient and efficient energy system
  • Mission Heat Transition 2045: Research for a climate-neutral heating and cooling supply
  • Mission Electricity Transition 2045: Research for the conversion of the electricity supply to renewable energies
  • Hydrogen Mission 2030: Research for a sustainable hydrogen economy
  • Mission Transfer: Rapid transfer of research results into practice

PV is an important part of the Mission Electricity Transition. The main focal points for photovoltaics research in 2024 were again topics relating to technology developments for highly efficient solar cells and modules, silicon-perovskite tandem solar cells, and issues of reliability and sustainable operation of photovoltaic systems. A secondary topic deals with the integration of PV systems in both the built environment and the energy system.

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Industry and Market Development

The positive development of the German photo-voltaic market over the last ten years has continued with a further strong increase. With 59% of total electricity generation, renewable energy generation plants were the most important source of energy in Germany. PV accounted for 15%, or 63.3 TWh, of this.

The impressive number of installed balcony solar power plants in Germany testifies to high social acceptance of the technology.

By the beginning of 2024, the number of employees in the photovoltaic sector had risen to over 100 000. This increase of 35% compared to 2022 is primarily due to additional employees in the operation and maintenance of PV systems.

Nevertheless, the market environment is extremely challenging for German photovoltaic manufacturers, particularly due to low prices for modules and other components, especially from Asia. To meet this hurdle, the BMWK has initiated a recently published feasibility study on the reconstruction of an integrated PV industry in Germany and Europe. The study, called Libertas, aims to determine how the entire ecosystem of manufacturing, mechanical engineering, supply chain, research institutes, and qualified personnel could be fully (re-)established in the shortest possible time. In addition to competitive and innovative products, sustainable, CO2-neutral production is taken into account. Some key elements of the Libertas findings will soon be addressed by targeted research activities.

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Participants

Task - 0 - Exco

Forschungszentrum Jülich GmbH, Projektträger Jülich (ESE)

HÜNNEKES Christoph

Vice Chair Task Mentoring

PRUME Klaus

Supporter to Vice Chair Task Mentoring

Task - 1

Forschungszentrum Jülich GmbH, Projektträger Jülich (ESE)

ALTENHÖFER-PFLAUM Georg

Task - 12

Fraunhofer Institute for Solar Energy Systems (ISE)

NOLD Sebastian

Task - 13

Fraunhofer Centre for Silicon Photovoltaics (CSP)

JAHN Ulrike

Task 13 Manager

Fraunhofer Institute for Solar Energy Systems (ISE)

HEIMSATH Anna

SCHILL Christian

TROMMSDORFF Max

WEISS Karl-Anders

Institute for Solar Energy Research GmbH (ISFH)

KÖNTGES Marc

Task - 14

Fraunhofer IEE

ARNOLD Gunter

MENDE Denis

Technische Hochschule Ulm (THU)

HEILSCHER Gerd

Task 14 Deputy Manager

Task - 15

Fraunhofer Institute for Solar Energy Systems (ISE)

WILSON Helen Rose

Task - 16

CSP Services

FORSTINGER Anne

Fraunhofer Institute for Solar Energy Systems (ISE)

LORENZ Elke

German Aerospace Center (DLR)

WILBERT Stefan

Task - 17

Forschungszentrum Jülich GmbH

DING Kaining

Task - 18

Africa GreenTec

GREITLEIN Felix

PETERS Fabian

Asantys

MHANNA Jad

TRITTLEIN Stefan

Ecolog Institute

KLAUS Tobias

SINGH Reem

Fraunhofer Institute for Solar Energy Systems (ISE)

BOPP Georg

STORTZ Felix

OFRES

MÜLLER Michael

Task 18 Co-Manager

Reiner Lemoine Institute

BLECHINGER Philipp

Rolls Royce Solutions

GEZE Nicolas

ROSENFELD Simon

Task - 19

Technische Hochschule Ulm (THU)

HEILSCHER Gerd

Task 14 Deputy Manager