The first of its kind, this study offers an overview of the photovoltaics and battery storage market in Germany. It provides the latest statistics on the PV market and battery storage systems, along with an examination of current funding mechanisms in Germany. From market outlook to anticipated growth in the PV market and the evolving role of battery systems, this study outlines both present state and future prospects. Commissioned by the German Solar Association (BSW-Solar), supported by Intersolar Europe 2024 and conducted by the Fraunhofer Institute for Solar Energy Systems, it represents a significant contribution to understanding the dynamics of Germany’s renewable energy landscape.
The German PV and Battery Storage Market
At the heart of Germany’s energy transition is photovoltaics (PV) which happens to be the countries’ favorite form of energy generation, according to surveys. With ambitious government targets and framework conditions to match that ambition, a PV capacity totaling 215 GW by 2030 and 400 GW by 2040 is realistically achievable. Photovoltaics have emerged as the key element of Germany’s energy landscape, flanked by onshore and offshore wind power. The anticipated annual PV capacity increase published by the Federal Ministry for Economic Affairs and Climate Action (BMWK) demonstrates a linear growth path to 2026, after which it stabilizes at 22 GW for subsequent years. The expansion is intended to consist of a roughly fifty-fifty distribution of ground-mounted systems and rooftop systems. Furthermore, market trends point to continuing robust growth across all market segments, from residential systems to industrial applications and ground-mounted solar parks, driven by increasing demand for affordable, green electricity, the population’s desire for greater energy independence, robust remuneration schemes, regulatory support for PV and battery storage systems, as well as substantial market opportunities for investors and installers. By 2030, further trends are expected to accelerate as Germany ramps up its efforts to meet its ambitious climate targets.
Conceivable expansion path to reach 215 GW in 2030 according to the Federal Ministry for Economic Affairs and Climate Action (BMWK) compared to the actual net capacity increase in 2023
Battery Storage Boom: 1.2 Million Systems Installed
Notably, battery storage systems, also essential for Germany’s renewable energy transition, constitute a significant component of this ecosystem, with 1.2 million installed systems. The total installed battery capacity amounts to 12.6 GWh, with residential storage systems comprising 82%, commercial storage systems accounting for 6%, and mass storage systems making up the remaining 12%. In 2019, 46% of all commissioned residential rooftop PV systems had already been paired with battery storage systems. Remarkably, this share surged to 77% in 2023, indicating a significant upward trajectory of the trend toward combining PV residential rooftop systems with battery storage in Germany. To date, most battery storage systems in the German electricity system have been used exclusively to optimize self-consumption. Consequently, an exponentially growing number of homeowners and companies store solar power for times when solar generation is low. Looking toward thefuture, further developments in the regulatory framework can be expected, to ensure that storage systems increasingly provide benefits to the energy system that extend beyond self-consumption.
Federal States drive PV Expansion in Germany
The 16 federal states in Germany play an important role in PV expansion. Through policy initiatives, incentives and regulations, states can promote the adoption of PV technology, stimulate investment, and facilitate infrastructure development. This applies especially to building regulation and spatial planning which regulatory competence is mostly in the hands of the federal states. High levels of installed residential PV capacity can be found in Bavaria with 668 W per inhabitant, Baden-Württemberg with 467 W per inhabitant, and Rhineland-Palatinate with 434 W per inhabitant. Some regions of the country have approximately 190 to 290 W per inhabitant. Regarding ground-mounted systems, the highest installed capacities per land area are in Brandenburg with 153 kW/km2, Saarland with 132 kW/km2 and Bavaria with 114 kW/km2. Generally speaking, federal states with higher land availability have – unsurprisingly – more utility scale PV, while the extensive use of agriculturally disadvantaged areas by some states also plays a role in the distribution.
German PV Industry Pioneers Innovation
Sustained growth is forecasted in the market for new PV capacity for years to come. Concurrently, battery systems are expected to reach a capacity of at least 100 GWh by 2030, reflecting a transformative shift within the German energy system towards renewable energy integration. The country‘s solar industry is synonymous with technological excellence, anchored by leading research institutions and solar companies, both in developing innovative solar components and implementing high-quality and cost-effective solar projects.
This study serves as a comprehensive overview of the status of and trends in Europe’s largest PV and storage market.
David Wedepohl
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