Germany Experiences a Steep Decline in March PV Installations

The latest data from Germany's Federal Network Agency (Bundesnetzagentur) paints a concerning picture for the country's solar energy sector, revealing a sharp drop in photovoltaic (PV) installations in March. The nation added approximately 787.2 megawatts (MW) of new PV capacity during this month, a figure that starkly contrasts with the 1,665 MW installed in February and the 1,401 MW added in March 2024. This marks the weakest monthly performance in the German PV market since December 2022, when around 456.5 MW of capacity was deployed.

Looking at the broader perspective, the newly installed PV capacity for the first quarter of this year amounted to 3.78 gigawatts (GW). While this might seem comparable to the 3.71 GW installed in the same period last year, the significant monthly fluctuations, especially the notable slump in March, raise questions about the sector's momentum. By the end of March, Germany's cumulative installed PV capacity reached roughly 104 GW, reflecting the country's long-standing commitment to solar energy, but the recent slowdown cannot be ignored.

The decline was particularly evident in the rooftop PV segment. In March, Germany saw the installation of around 25,000 new rooftop PV systems, contributing a total of 385.5 MW of capacity. This is a substantial decrease from the 540 MW installed in February and the 1,029 MW added in January. Industry experts attribute this downturn to the implementation of the new Solarspitzengesetz law, which came into effect at the end of February.

This law has introduced significant changes to the PV incentive structure. It stipulates that new photovoltaic systems will no longer receive compensation when electricity prices on the spot market are negative. For systems equipped with smart metering, any downtime will be accounted for after the regular subsidy period concludes. Moreover, systems under 100 kW without a smart meter are required to limit their power feed-in to 60% of their capacity. These regulatory adjustments have clearly had a chilling effect on the rooftop PV installation market.

In the large-scale solar park segment, the Bundesnetzagentur reported that 100 new solar parks, with a combined capacity of 280.5 MW, were connected to the grid in March. This pales in comparison to February, when 183 new ground-mounted systems, totaling 1,105.2 MW, were commissioned. However, it's important to note that the number of new installations in this segment typically experiences significant monthly fluctuations, as the commissioning of a single large-scale project can skew the statistics significantly.

Overall, the sharp decline in Germany's PV installations in March serves as a wake-up call for the industry. With the new regulatory environment and market dynamics at play, stakeholders will need to closely monitor the situation and adapt their strategies to ensure the continued growth and success of the country's solar energy sector.