German Solar Energy Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 85.16 gigawatt |
| Market Volume (2029) | 155.53 gigawatt |
| CAGR (2024 - 2029) | 12.80 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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German Solar Energy Market Analysis
The Germany Solar Energy Market size is estimated at 85.16 gigawatt in 2024, and is expected to reach 155.53 gigawatt by 2029, growing at a CAGR of 12.80% 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 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.
German 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.
- Moreover, 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, and commercial operations are expected to start in the second half of 2024.
- According to data from the Federal Statistical Office (Destatis), there has been a 10.1% increase in the number of solar photovoltaic power stations compared to the same month in 2021. Additionally, the installed capacity has shown a Y-o-Y growth of 9.7% between 2021 and 2022. When initial data was collected in January 2018, there were slightly over 1.7 million power stations with a net capacity of 42,300 megawatts. Since then, there has been nearly a 34.0% rise in power stations, and the installed capacity has increased by 38.3%.
- 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 take leverage to ramp up their share in the renewable energy mix. However, electricity generation from fossil-fuel technologies and various means to sell electricity have substantially increased prices in recent years.
- Hence, the high cost of electricity generation from fossil fuels could likely help Germany in transiting to cheaper renewable energy resources, such as solar energy, and 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 Germany, household electricity prices in 2022 increased by almost 60% compared to the previous year. The trend of increases in household electricity prices has persisted since 2018. The non-household electricity prices in 2022 increased by approximately 90% to EUR 0.17 per kWh (or USD 0.19 per kWh). Promoting the utilization of solar energy would prevent customers from paying higher prices procured by conventional means, thereby augmenting the growth of the German solar market.
- Moreover, the Germany Solar Package rolled out by the government aims to install 215 GW of solar by 2030. Adding to this, for residential areas, in June 2022, the Government of Germany increased the feed-in tariff for solar energy power plants up to 750 kW, which also encourages the 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.
German 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.
German 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
German Solar Energy Market News
- 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. The project is being developed by MOVE ON Energy on a former opencast coal mine site near Leipzig. It was expected to be operational by the end of 2023.
- 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.
- 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.
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 till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 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 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
German 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 have been done 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 85.16 gigawatt in 2024 and grow at a CAGR of 12.80% to reach 155.53 gigawatt by 2029.
What is the current Germany Solar Energy Market size?
In 2024, the Germany Solar Energy Market size is expected to reach 85.16 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 74.26 gigawatt. The report covers the Germany Solar Energy Market historical market size for years: 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.
