German solar sector warns of slowing expansion
- Özcan Berk Atakan
- 2 days ago
- 2 min read
Germany’s solar energy sector, long regarded as a cornerstone of Europe’s energy transition, is showing early signs of losing momentum. While total installed photovoltaic (PV) capacity continued to grow in 2025, industry representatives warn that the pace of expansion—particularly in the residential segment—is no longer sufficient to meet the country’s long-term climate and energy targets.
According to industry data, new rooftop solar installations on private homes fell by around 25% year-on-year. This decline contrasts with the continued growth of large, ground-mounted solar projects, which helped keep overall annual additions at roughly 17.5 GW. However, the imbalance highlights a structural issue: growth is becoming increasingly concentrated in utility-scale projects, while household and small commercial participation weakens.
The German Solar Association (BSW-Solar) has cautioned that this trend could undermine Germany’s ambition to scale solar deployment rapidly and broadly across society.
Several factors are contributing to the slowdown:
Uncertainty around future support schemes, particularly for small-scale PV systems
Discussions about reducing incentives for residential and commercial rooftop installations
High interest rates, which have raised financing costs and extended payback periods
Grid connection constraints and administrative delays, affecting project timelines
Together, these challenges are dampening investor confidence at a time when acceleration—not consolidation—is required.
Solar power remains central to Germany’s Energiewende strategy, with national plans targeting more than 200 GW of installed PV capacity by 2030. Achieving this goal will require not only large utility-scale developments, but also a sustained contribution from residential and commercial rooftops.
Industry stakeholders are calling for:
Stable, predictable policy frameworks
Continued support for decentralized solar generation
Faster grid upgrades and streamlined permitting procedures
Without these measures, the current slowdown risks becoming structural rather than temporary.
Germany’s solar sector is still expanding, but the warning signs are clear. A decline in residential installations, combined with policy and financing uncertainty, could slow progress at a critical stage of the energy transition. The decisions taken in the coming months will be decisive—not only for Germany’s solar market, but for the wider European renewable energy landscape that often looks to Germany as a benchmark.
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