German Solar Boom Threatened As Government Weighs Slashing Vital Subsidies

Despite reaching nearly 100 GW of installed solar capacity, Germany’s ambitious solar expansion is showing signs of trouble. New data shows solar installations dropped to just 838.5 megawatts in April 2025, far below the roughly 1.5 gigawatts needed monthly to meet the country’s 2030 targets.

Germany aims to have 215 gigawatts of solar power by 2030 as part of its goal to generate 80% of electricity from renewable sources. The country added 17.9 gigawatts in 2024 and another 4.65 gigawatts in the first quarter of 2025, bringing the total to between 99 and 104 gigawatts.

The recent slowdown comes at a critical time for Germany’s energy evolution. Solar energy generated 74 terawatt-hours in 2024, making up 14.9% of the country’s electricity production. July 2024 set a monthly record with 10.1 terawatt-hours of solar power.

Rooftop systems account for about 69% of new solar capacity, showing strong residential and small business demand. The balcony plug-in solar segment also continues to grow thanks to incentives and easier regulations. This trend mirrors the United States where federal tax credits have similarly driven residential solar adoption.

Weather-related challenges have affected Germany’s renewable energy mix in early 2025. Offshore wind production fell by 31% and onshore wind by 22% in the first quarter, leading to a 16% year-on-year drop in total renewable generation. This reduced renewables’ share of electricity consumption to 46.9%. The significant expansion of solar power, which increased by 32% in Q1 2025, has been crucial for diversifying Germany’s energy mix despite these setbacks. The government remains committed to its Energiewende policy framework despite these temporary setbacks.

Grid congestion and curtailment in some regions have reduced solar efficiency. Slow grid modernization and limited storage options also constrain the integration of intermittent solar power. Large ground-mounted projects face permitting delays, further slowing near-term additions.

Germany’s solar market is valued at $2.4 billion in 2024 and is projected to reach $5.2 billion by 2030, growing at a rate of 13.8% annually. The country has passed the milestone of five million solar installations, highlighting its decentralized approach to solar deployment.

If monthly installations continue below the 1.5 gigawatt pace, Germany risks falling short of its 2030 renewable energy targets.