Is Solar Power Investment Still Profitable Despite Negative Electricity Prices?

Negative electricity prices are becoming increasingly common in wholesale energy markets, leading many to question whether solar power investment remains financially viable. Despite these concerns, photovoltaic (PV) systems — particularly when combined with battery storage — continue to offer significant long-term value.

The Rise of Negative Electricity Prices

In the first half of 2025, there were 389 hours of negative electricity prices, an increase of roughly 80% compared to the same period the previous year. May and June even set new records, with 130 and 141 hours of negative prices respectively. These trends reflect a market in transition, driven by the rapid growth of renewable energy.

Rather than signaling a decline in the value of solar energy, negative prices highlight the need for flexible energy solutions. PV systems, especially when paired with home or commercial battery storage, are positioned to help consumers manage this evolving landscape.

Why PV and Battery Storage Remain Economically Attractive

Even in a market with price volatility, solar power investment continues to deliver strong financial returns. Self-consumption of PV electricity reduces reliance on grid power, and during periods of low market prices, a battery energy storage system (BESS) allows excess energy to be stored and used later, maximizing cost savings.

Short-term fluctuations should not be mistaken for declining profitability. Instead, they illustrate an ongoing shift toward a decentralized and more resilient energy market. As grid infrastructure improves and energy storage capacity expands, electricity price volatility is expected to stabilize. Meanwhile, feed-in tariffs of roughly 7–8 cents per kilowatt-hour, along with extended compensation periods during negative price intervals, provide a secure revenue foundation.

The Advantage of Self-Consumption

Even when wholesale prices turn negative, households and businesses with standard electricity contracts often pay 25–40 cents per kilowatt-hour due to taxes and surcharges. Dynamic pricing contracts may pass on some of the savings, but total costs typically remain around 15–20 cents per kilowatt-hour.

By contrast, self-generated solar power can cost less than 8 cents per kilowatt-hour. Every kilowatt-hour consumed directly is therefore more valuable than one exported to the grid. With the help of energy management systems that integrate appliances, battery storage, and smart tariffs, self-consumption rates can be increased significantly.

Energy Independence and Property Value

Generating electricity on-site not only provides protection against market price fluctuations but also reduces dependence on external energy providers. In an era marked by geopolitical uncertainty and supply chain challenges, this level of independence is especially valuable for both homeowners and businesses.

Moreover, installing a PV system enhances property value by improving energy efficiency and sustainability — key considerations for modern buyers. The addition of battery storage further boosts energy autonomy, allowing consumers to use more of their own solar production and minimize grid reliance.

A Long-Term Solution for a Changing Market

The growing prevalence of negative prices is largely due to a lack of grid-scale storage and flexibility. However, advancements in battery energy storage, smarter tariffs, and grid modernization are expected to gradually reduce these imbalances.

Ultimately, solar power investment combined with battery storage remains one of the most cost-effective and future-proof strategies for managing energy costs. It not only supports a cleaner energy transition but also provides households and businesses with financial stability and greater independence from volatile market conditions.