More than 1 million PV systems account for over 14 gigawatts of new PV deployment in Germany in 2023

German Solar PV market: wrap-up 2023

More than one million new solar power systems with an output of around 14 GW were installed in Germany last year, more than twice the number of new PV and storage systems as were installed in the previous year. In 2023, according to data from the Bundesnetzagentur, Germany’s federal network agency, Germany saw 14.1 GW of peak output from newly installed rooftop and ground-mounted systems alone. This easily surpassed the 9 GW target for new photovoltaic deployment set by the German government. Compared to the previous year’s level of 7.5 GW in new PV deployment, this translates into a growth rate of 85% in newly installed PV capacity relative to 2022. In retrospect, 2023 turned out to be a record-breaking solar year!

Although it is perhaps too early to make reliable predictions for 2024, numerous indications suggest that the amount of PV capacity that will be connected to the grid during this year will be more rather than less than what was installed in 2023. We can therefore expect the interim target of 13 GW set out by the German government for 2024 to be exceeded. BSW-Solar’s preliminary assessment of the PV year 2023, published on 2 January 2024, also provides an initial outlook to the year 2024, with an aim to maintain the positive mood and momentum of the previous year and carry it into the new year.

Germanys hard-to-understand budget woes have likely worsened the prospects for achieving follow-up improvements to the Solar Package I. According to BSW-Solar, one area that could be affected by budget cuts is the expression of interest procedures for lighthouse projects designed to ramp up industrial PV production capacities. And while the German Government has tried to reassure the industry that the compromise will not result in cuts to solar support via the EEG legislation, BSW has criticized the announcement for fueling public speculation and contributing to investment uncertainty.

BSW Managing Director Carsten Körnig warned that potential cuts to solar funding could endanger PV deployment targets in Germany and across Europe at a time when energy security and climate goals hinge on a significant acceleration of solar deployment. This is no time to jeopardize projects for new PV factories in Germany and put Europe’s solar power renaissance at risk. In a 17 November open letter to the Federal Government, BSW and 18 other associations from the climate protection, energy efficiency and renewable energies sectors issued a warning in which they called for immediate and reliable securing of sufficient funding to support climate protection investments. Any undermining of these long-term goals would have serious implications for the generational task of climate protection, not only putting at risk hundreds of thousands of jobs in the skilled trades, construction and climate protection sectors, but also jeopardizing the economy as a whole.

Overall, despite indications that the “exceptional economic boom” in the single-family home segment is cooling off, the PV and storage industry look confidently to the coming year, with most companies expecting to see a further increase in newly installed capacity in Germany. In 2024 it will be crucial to cut any remaining bureaucratic anchors so that we can enable sustainable growth for the entire photovoltaic and storage sector, and design the rules of the market in such a way that solar deployment can continue its growth trajectory under its own power and with less reliance on external support measures.