German Solar Energy Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 97.31 gigawatt |
| Market Volume (2029) | 225.47 gigawatt |
| CAGR (2024 - 2029) | 18.30 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Germany Solar Energy Market Analysis
The Germany Solar Energy Market size is estimated at 97.31 gigawatt in 2024, and is expected to reach 225.47 gigawatt by 2029, growing at a CAGR of 18.30% during the forecast period (2024-2029).
- Over the medium term, factors such as the decreasing cost of solar energy infrastructure, coupled with the increasing electricity prices from conventional energy sources, are expected to drive the growth of the German solar energy market.
- On the other hand, the increasing adoption of alternate energy sources is expected to hinder the market's growth.
- Nevertheless, there is a rise in technological advancements in solar technology, such as increasing solar module efficiency. These measures present tremendous opportunities for the German solar energy market.
Germany Solar Energy Market Trends
Solar Photovoltaic (PV) Expected to Dominate the Market
- The German solar energy market has undergone significant transformations in recent years. As one of the leading countries in adopting renewable energy, Germany has consistently prioritized the development of its solar sector. This commitment is rooted in the country's ambitious energy transition goals, known as the "Energiewende," which seek to reduce carbon emissions, phase out nuclear power, and shift toward a sustainable energy future.
- The declining costs of solar technology, particularly photovoltaic panels, have played a pivotal role in expanding the market in Germany. As solar panels have become more affordable, the return on investment for solar installations has improved, making them increasingly appealing to consumers and businesses. The steady decrease in solar equipment prices has also led to an increase in the competitiveness of solar power against traditional energy sources.
- In July 2023, Emeren Group Ltd, a global solar project developer and operator, announced the successful sale of an 11.5 MWp PV project to the Swiss-based energy company MET Group. The project was sold at the Ready-to-Build ("RTB") stage, and MET Group is expected to complete the construction and operate the power plant. The solar PV power plant will be located in Kentzlin, Germany, in the state of Mecklenburg-Western Pomerania. Commercial operations are expected to start soon.
- According to data from the International Renewable Energy Agency RE Capacity 2024, the solar energy PV installations in Germany increased from 67,477 MW in 2022 to 81,737 MW in 2023, adding 14,260 MW in just one financial year, thus promising strong growth in the market.
- In September 2023, Uniper made a strategic decision to establish a 300 MWp photovoltaic plant in Elsfleth, Germany. This project is expected to cover an area of approximately 281 hectares. The chosen location is near the Huntorf and Wilhelmshaven asset locations. By aligning with the regional energy concept "Photovoltaik Wesermarsch," this plant is expected to contribute significantly to sustainable energy production.
- Furthermore, the German solar energy market has exhibited robust international competitiveness. The country is home to several leading solar technology manufacturers and suppliers, making it a key player in the global solar industry. Germany's export of solar products and technology contributes significantly to the country's economic growth and trade surplus.
- In conclusion, Germany's solar PV market is a dynamic and rapidly expanding sector that has witnessed remarkable growth due to supportive government policies, declining technology costs, a commitment to sustainability, innovative financing models, and strong international competitiveness.
Increase in Prices of Electricity Procured from Conventional Mechanisms Expected to Drive the Market
- Germany has vast solar energy potential, and accordingly, renewable energy companies have continued to leverage this potential to ramp up their share in the renewable energy mix. However, electricity generation from fossil-fuel technologies and various means of selling electricity have substantially increased prices in recent years.
- Hence, the high cost of electricity generation from fossil fuels could help Germany transition to cheaper renewable energy resources, such as solar energy. This is anticipated to act as a growth driver for consumers, utilities, commercial, and industrial stakeholders to install solar energy generation infrastructure, thereby increasing the market penetration of solar energy in Germany.
- In March 2024, the German Energy Ministry also announced shutting down seven coal-lignite-fired power plants. The country aims to fully phase out coal power by the end of the decade and switch to Electricity Procurement from Conventional Mechanisms like Solar and Wind.
- In May 2023, the German government announced that it would ease bureaucratic hurdles for solar power as the country set a new record for photovoltaic installations during the first quarter. The government aims to have 215 GW of solar installed in Germany by 2030, more than tripling existing capacity in seven years.
- In June 2022, household electricity prices in Germany were EUR 0.3279 per kilowatt Hour, which increased to EUR 0.4125 per kilowatt Hour in June 2023, citing a 25.8% increase. Such reasons invite a demand for more electricity offtake from cheaper solar energy resources in Germany.
- Moreover, the Germany Solar Package, which the government rolled out, aims to install 215 GW of solar panels by 2030. In June 2022, the Government of Germany increased the feed-in tariff for solar energy power plants up to 750 kW for residential areas, which also encourages end-consumers to install solar PV rooftop power plants and earn revenue by injecting electricity into the conventional grid. These government interventions are expected to enhance the solar energy market in the long term.
- In the current market scenario, the high electricity prices have forced high-energy-intensive industries such as steel, cement, food, and beverage to either shut down or curtail the rate of production. This has highlighted the importance of the integration of renewable energy resources such as solar in Germany.
- Hence, such factors are expected to drive the growth of the solar energy market in Germany in a scenario where electricity prices sold by utility or independent power producers are shooting up.
Germany Solar Energy Industry Overview
The German solar energy market is moderately fragmented. Some of the major players in the market (in no particular order) include IBC Solar AG, Centrotherm International AG, SunPower Corporation, Energie Baden-Wurttemberg AG, and Hanwha Corporation.
Germany Solar Energy Market Leaders
IBC SOLAR AG
Centrotherm International AG
SunPower Corporation
Hanwha Corporation
Energie Baden-Wurttemberg AG
*Disclaimer: Major Players sorted in no particular order
Germany Solar Energy Market News
- April 2024: SINN Power GmbH, a Germany-based energy company, announced its plans to build a 1.8 MW floating PV system with vertically deployed solar modules on a lake at a gravel pit in Gilching, Bavaria. SINN Power GmbH will use its own patented 2,500 Nos Floating-SKipp mounting systems for the project.
- January 2024: RWE in Germany commenced supplying green electricity to the grid from Agri-PhotoVoltaic plant that boasts a peak capacity of 3.2 megawatts (approximately 2.5 MWac) and features three technical Agri-PV concepts, enabling both agricultural and horticultural use of the land that and is situated on approximately 7 hectares of agricultural land at the edge of the Garzweiler opencast mine in North Rhine-Westphalia, Germany.
- September 2023: Shell Energy signed a 15-year power purchase agreement with HANSAINVEST Real Assets to obtain 600 MW of solar energy from the Witznitz Energy Park. MOVE ON Energy is developing the project on a former opencast coal mine site near Leipzig. It was expected to be operational by the end of 2023.
Germany Solar Energy Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 German Solar Energy Installed Capacity and Forecast, in GW, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Market Drivers
4.5.1.1 Increase in Prices of Electricity Procured from Conventional Mechanisms
4.5.1.2 Decline in Cost of Solar Energy Infrastructure
4.5.2 Market Restraints
4.5.2.1 Competition from Other Alternative Energy Sources
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Solar Photovoltaic
5.1.2 Concentrated Solar Power
5.2 By Application
5.2.1 Utility
5.2.2 Commercial/Industrial
5.2.3 Residential
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 BayWa r.e. AG
6.3.2 Centrotherm International AG
6.3.3 Sun Power Corporation
6.3.4 AE Alternative Energy GMBH
6.3.5 Hanwha Corporation
6.3.6 IB Vogt GmbH
6.3.7 Energie Baden-Wurttemberg AG
6.3.8 IBC SOLAR AG
6.3.9 Vattenfall AB
6.3.10 Solnet Green Energy OY
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Technological Advancements in Solar PV Manufacturing
Germany Solar Energy Industry Segmentation
Solar energy refers to the energy obtained from the sun's radiation. It is a renewable and abundant source of energy that can be harnessed and converted into usable forms such as electricity and heat. The sun emits electromagnetic radiation, including visible light, infrared, and ultraviolet (UV). Solar energy technologies capture and convert this radiation into usable energy for various applications.
The German solar energy market has been segmented by type and application. By type, the market is segmented into solar photovoltaic and concentrated solar power. By applications, the market is segmented into utility, commercial/industrial, and residential. For each segment, market sizing and forecasts are provided based on installed capacity (GW).
| By Type | |
| Solar Photovoltaic | |
| Concentrated Solar Power |
| By Application | |
| Utility | |
| Commercial/Industrial | |
| Residential |
Germany Solar Energy Market Research FAQs
How big is the Germany Solar Energy Market?
The Germany Solar Energy Market size is expected to reach 97.31 gigawatt in 2024 and grow at a CAGR of 18.30% to reach 225.47 gigawatt by 2029.
What is the current Germany Solar Energy Market size?
In 2024, the Germany Solar Energy Market size is expected to reach 97.31 gigawatt.
Who are the key players in Germany Solar Energy Market?
IBC SOLAR AG, Centrotherm International AG, SunPower Corporation, Hanwha Corporation and Energie Baden-Wurttemberg AG are the major companies operating in the Germany Solar Energy Market.
What years does this Germany Solar Energy Market cover, and what was the market size in 2023?
In 2023, the Germany Solar Energy Market size was estimated at 79.50 gigawatt. The report covers the Germany Solar Energy Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Germany Solar Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Solar Energy in Germany Industry Report
Statistics for the 2024 Germany Solar Energy market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Germany Solar Energy analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
