Solar energy in vogue - uncertainties regarding subsidies

Energy - Solar energy in vogue - uncertainties regarding subsidies

According to the solar industry, more new solar systems for generating electricity and heat were installed in Germany last year than ever before. More than one million new systems were installed, reported the German Solar Industry Association (BSW) in Berlin.

A large proportion of these are so-called balcony power plants. Around 270,000 new plug-in solar devices were put into operation in Germany in 2023. That is four times as many as in 2022. However, it is unclear what will happen to state subsidies in light of the budget crisis.

According to the Federal Network Agency, systems with a peak output of around 14 gigawatts of electricity generation from sunlight were newly commissioned on rooftops and open spaces. This is 85 percent more than in 2022.

Around 3.7 million solar power systems installed in Germany

Half of the newly installed solar power capacity in 2023 was attributable to the residential segment, according to the BSW. PV systems on open spaces accounted for around 31 percent and PV systems on commercial roofs for around 18 percent. "Due to their low specific output, the large number of plug-in solar devices accounted for less than two percent of the newly installed PV output," emphasized BSW Managing Director Carsten Körnig.

There are now around 3.7 million solar power systems installed in Germany. They would have generated around 62 billion kilowatt hours of electricity in 2023, covering around 12 percent of German electricity consumption.

State funding uncertain

In order to promote climate-friendly power generation, the state is helping interested parties. The level of interest was demonstrated in September: in less than 24 hours, the 300 million euros available for last year from the "Solar power for electric cars" program were exhausted. At times, the customer portal of the KfW development bank was overloaded due to the rush. Those who were eligible were able to enjoy an investment grant of up to 10,200 euros, intended for owners who wanted to buy an electric car and install a charging station for it in combination with a photovoltaic system and a solar power storage unit.

The Ministry of Transport actually wanted to make a further 200 million euros available for the current year - but this seems uncertain in view of the budget crisis. Details on savings still need to be clarified in close consultation with the members of the Bundestag, the Ministry of Transport explained in response to an inquiry from dpa. It was not possible to anticipate the vote.

The Ministry of Economic Affairs is also unable to say what will happen with solar subsidies in other programs. "The funding program for the development of production capacities for transformation technologies will remain in place," it said. However, a reduction is planned. "We are now clarifying what specific effects this will have and which projects can now be funded and to what extent. It is not possible to make a definitive statement on this at the moment."

Industry association expects "continuing solar boom"

The industry association expects demand for solar systems to remain high in 2024. It justifies this with further rising electricity prices and attractive subsidy conditions. "We expect the solar boom to continue in 2024," explained Körnig. However, to ensure that the growth targets are also achieved in subsequent years, the reduction in bureaucracy must not be allowed to stall. Further measures to speed up procedures are needed to upgrade the electricity and heating grids more quickly.

In 2024, more than 1.5 million property owners were planning to install a solar system on their roof, the BSW reported. The association based this projection on a representative survey conducted by the opinion research institute Yougov among over 1,000 property owners in mid-December. According to the survey, 69 percent of residential property owners with suitable roof space could imagine installing a solar system on their roof. "16 percent are already planning to do so in the next 12 months," it continued.

Specifically, the association expects rooftop systems with a PV output of up to 30 kilowatts in the residential segment in 2024 - a demand of a similar magnitude to 2023. Last year, PV rooftop systems with a total peak output of seven gigawatts were installed in this segment. In contrast, the BSW expects the market for PV systems on commercial roofs and open spaces to grow.

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Despite the uncertainties regarding subsidies, the solar industry in Germany experienced a record-breaking year with the installation of over 1 million new solar systems, according to the German Solar Industry Association (BSW) based in Berlin.
The majority of these new solar systems are small-scale, known as balcony power plants, with around 270,000 new plug-in solar devices installed in 2023, which is four times as many as the previous year.
The Federal Network Agency reported that systems with a peak output of approximately 14 gigawatts of electricity generation from sunlight were newly commissioned on rooftops and open spaces, marking an 85% increase from the year before.
The BSW revealed that half of the newly installed solar power capacity in 2023 was attributable to the residential segment, while solar systems on open spaces accounted for 31%, and solar systems on commercial roofs made up 18%.
The accumulated 3.7 million solar power systems installed in Germany would have produced around 62 billion kilowatt-hours of electricity, covering approximately 12% of the country's electricity consumption.
The Ministry of Transport was planning to allocate an additional 200 million euros to promote the "Solar power for electric cars" program; however, this may not materialize due to the current budget crisis.
The solar industry anticipates a continuing boom in solar installations in 2024, driven by rising electricity prices and appealing subsidy conditions, but insists that speeding up bureaucratic processes and upgrading electricity and heating grids is crucial to maintaining growth targets in subsequent years.

Source: www.stern.de