More than one million new systems: record expansion of solar energy

"More than ever before" - More than one million new systems: record expansion of solar energy

Solar power had already won this race once before: While other sectors were still recovering from their New Year's Eve hangovers, the German Solar Industry Association was already forging ahead with a success story. "More than one million new solar systems" were installed in Germany in 2023, the association announced, "more than ever before". According to industry representatives, solar power systems with a peak output of 14 gigawatts were put into operation, almost twice as much as in the previous year at 85 percent more.

In fact, the solar boom is a reality. The German government 's original targets for expansion by 2023 have been significantly exceeded. The 14 gigawatts of capacity achieved are significantly higher than the nine gigawatts targeted by the government. According to calculations by the Fraunhofer Institute for Solar Energy Systems, June 2023 was even the month with the highest solar power generation ever achieved.

Boom in balcony power plants

However, the detailed figures paint a much more nuanced picture. Half of the newly installed solar power output was attributable to the home sector, i.e. private homeowners who had photovoltaics installed on their roofs. The so-called balcony power plants were also particularly popular, with 270,000 of them going into operation, but they hardly play a role in the total installed capacity.

On the other hand, the drivers that are ultimately decisive for the change - large-scale solar parks on the ground and systems on commercial roofs - also increased, but only accounted for a smaller proportion of the growth. The German government's campaign for more solar power is therefore only having a limited effect here. This could change if a growing number of federal states introduce a solar obligation for new commercial buildings in the next two years.

In terms of net electricity generation in Germany, i.e. what is actually available to the end consumer, renewable energies achieved a record overall. According to the Fraunhofer experts' calculations, they accounted for 59.7% in 2023, ten percentage points more than in the previous peak year of 2020. While generation from lignite and hard coal fell sharply, the overall lower demand for electricity also contributed to the fact that solar and wind were able to expand their market share. Curiously, 2023 was not actually a good year for sunshine: the rainy summer and equally wet autumn resulted in fewer productive hours than in previous years - despite the newly added capacity.

The wind is lacking

The Fraunhofer report also clearly shows where the energy transition in Germany is currently lacking the most: in wind energy. The German government actually wants to ensure that up to ten gigawatts of capacity is added on land every year. At the beginning of December, the slogan for 2023 was that it would be possible to increase the expansion "to four gigawatts". However, the result is pitiful in comparison: only 2.7 gigawatts were added last year. In the offshore sector, expansion was even slower due to complicated tenders and long construction times: only 0.23 gigawatts instead of the targeted 0.7 gigawatts. "The expansion of wind energy continues to lag behind the plan," the Fraunhofer experts state succinctly.

The big question is whether this will change substantially in the current year. The German government refers to its "Wind-an-Land Act", which aims to simplify approval procedures, but which has not yet led to a leap in the number of new wind farms connected to the grid. However, there has been a positive development in the number of new approvals - these are likely to be reflected in higher installation figures in the near future. In the offshore sector, individual wind farms currently under construction are likely to be connected to the grid, but this will not yet lead to a really big leap. In 2023, companies paid over 13 billion euros in a bidding process to build four wind farms in the North Sea and Baltic Sea. However, by the time they are connected to the grid, a different federal government will probably be in office.

Capital".