Photo: NxTide from Pixabay
The total capacity of all photovoltaic plants installed in Germany surpassed the 100 GW milestone at the end of 2024, with the share of solar energy in electricity consumption rising by two percentage points against 2023. However, demand for solar panels for private home roofs slowed last year, leading to layoffs and bankruptcies in the industry and threatening Germany’s renewable energy targets.
In 2024, around one million new photovoltaic systems, with a total peak capacity of around 17 GW, were commissioned on roofs and in open spaces, according to projections by the German Solar Industry Association (BSW Solar). It is a 10% increase from the previous year, when new installations reached 15.4 GW.
Ground-mounted solar and small plug-in modules continued to grow
The main growth drivers in 2024 were ground-mounted solar parks, with a year-on-year increase of around 40%, while rooftop solar installations by businesses grew by about 25%, according to the estimate. Demand for plug-in solar devices, also referred to as balcony solar systems, continued to surge, with newly installed capacity doubling from 2023.
New residential rooftop solar fell 15%
On the other hand, the growth of solar power systems on private home roofs slowed in 2024 after several record-breaking years. In this segment, newly installed capacity in Germany fell by around 15%, partly due to higher interest rates.
The trend raises concerns about Germany’s ability to install 19 GW of new solar annually through 2030 in order to reach carbon neutrality by 2045.
Cheaper solar modules from China threaten European producers
Other key markets across the EU, including Austria, Italy, Poland, the Netherlands, Belgium, Sweden, Spain, and Hungary, also saw substantial declines in the home solar segment, according to SolarPower Europe.
Due to this drop in demand, coupled with declining prices of solar modules caused by the influx of cheaper products from China, many European companies that distribute and install rooftop solar panels have gone out of business or been acquired, according to reports.
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