Solar Market Value Drops Sharply in April 2025

The market value for solar energy experienced a significant decrease in April 2025, settling at just 3.041 cents per kilowatt-hour (kWh), according to new data from transmission system operators. To put this into perspective, the value was at 5.02 cents in March and had peaked at an impressive 11.1 cents per kWh in February. This marks solar power as approximately 4.8 cents per kWh cheaper than electricity traded on the spot market. Such a substantial gap between the monthly market value of solar and the spot market price was last seen in August 2022. The reported spot market price for April stands at 7.794 cents per kWh.

Wind Energy Market Values Continue Downward Trend

April 2025 also saw a continued, although less dramatic, decline in the market value for wind energy. Onshore wind power was priced at 7.314 cents per kWh for the month, compared with about 7.513 cents in March. Offshore wind saw its market value fall to 7.318 cents per kWh in March 2025, dropping from roughly 8.136 cents per kWh the previous month.

Why the Solar Market Value Matters for Direct Marketing Participants

The monthly solar market value plays a critical role for those involved in direct marketing under the Renewable Energy Sources Act (EEG). It reflects the average revenue that could be obtained from selling solar power on the exchange during a particular month. If this market value slips below the EEG compensation rate, the grid operator covers the difference using the EEG’s financial support account.

Impact of Negative Electricity Prices on Subsidies

April also brought several hours when electricity prices dipped into negative territory. For installations that began operating after March 2016, there is no entitlement to the market premium during periods when negative prices persist for more than four hours. In the case of newer photovoltaic systems, subsidies are automatically withheld during any periods of negative prices. However, these unremunerated hours are subsequently added onto the 20-year subsidy period, ensuring that support is ultimately provided for the promised duration.