Soaring energy prices, growing environmental awareness, electrification of transportation and increasing user demand have driven Germany to accelerate the installation and deployment of photovoltaic systems. After the installed capacity of photovoltaic system hit a new record in 2021, the installed capacity of small household photovoltaic system in Germany reached 1.6gw, with an average installed capacity of 15kw. It is expected that the installed capacity in this field will increase by another 1.8gw this year.
It is estimated that the number of 10 ~ 15kw household photovoltaic systems installed in 2022 will increase significantly, while the number of 5 ~ 10kW household photovoltaic systems installed will continue to stagnate. As in previous years, the relevance of the German household photovoltaic system market continues to increase in 2022. In 2021, 30% of the installed capacity of household photovoltaic systems in Germany will reach 15kwp; By 2022, this proportion is expected to increase to 36%.
With an installed capacity of 1 ~ 15kw, the household photovoltaic market in Germany is booming. The increase of roof photovoltaic power generation of residential users reveals the impact of heating and traffic electrification. In a recent survey, 500 residential owners were interviewed about the energy consumption of household photovoltaic system. About two-thirds of the respondents said they would first meet the daily power consumption, while almost all other respondents believed that the installation of energy storage system for photovoltaic system is an essential measure. One third of respondents said they would use photovoltaic system for electric heating, while one quarter said they would use photovoltaic system to charge electric vehicles.
From the investment plan of owning photovoltaic system to the importance of owning special charging stations for electric vehicles, we can see the importance of photovoltaic system for charging electric vehicles. 95% of the owners of photovoltaic systems believe that charging electric vehicles is very important. Home users who actively choose to buy photovoltaic systems also pay more attention to charging electric vehicles. The proportion of homeowners without photovoltaic system investment plan fell to 69%. This result confirms that photovoltaic system owners and planners seem to regard electric vehicles as an ideal consumer.
Dr Martin Ammon, managing partner of research firm eupd research, commented that "in the context of the sharp rise in energy prices, clean and cheap roof photovoltaic power generation is becoming more and more important for homeowners, and the investment in photovoltaic systems has also stimulated the purchase of electric vehicles."
Germany's Household Photovoltaic Market Booms: 1.8GW Surge Expected in 2025 as Energy Transition Accelerates
Berlin, November 5, 2025 – Germany's household photovoltaic (PV) market is experiencing unprecedented growth, driven by rising energy prices, government incentives, and a nationwide push for energy independence. According to industry projections, the sector is poised to expand by an additional 1.8 gigawatts (GW) in 2025, marking a record-breaking year for residential solar adoption. This surge underscores the country's commitment to phasing out fossil fuels and achieving its ambitious renewable energy targets.
Policy Incentives Fueling Market Expansion
The German government's Renewable Energy Act (EEG), coupled with enhanced feed-in tariffs and tax exemptions, has significantly lowered the financial barriers for homeowners installing solar panels. Under the revised policy, households receive subsidies for grid-connected PV systems, with additional incentives for battery storage integration. This dual approach has transformed rooftop solar from a niche investment into a mainstream solution, particularly in regions like Bavaria and Baden-Württemberg, where solar irradiance levels are optimal.
Local PV businesses have played a pivotal role in this expansion. Companies based in Xining, Qinghai Province—a region with a thriving unsubsidized PV market—have demonstrated that decentralized distribution networks can drive rapid adoption. Similarly, German firms have established extensive sales and service networks, making small-scale PV systems accessible even in rural areas.
Economic Viability and Energy Security
The economic case for residential solar has strengthened amid volatile fossil fuel prices. A 2025 study by the Institute for Energy Economics found that behind-the-meter PV systems, when paired with battery storage, offer a Levelized Cost of Energy Storage (LCOES) as low as €0.10 per kWh, making them competitive with grid electricity. Households in Germany now view solar panels as a hedge against energy inflation, with payback periods shrinking to under seven years.
Energy security concerns have further accelerated demand. Following geopolitical tensions in 2024, which disrupted gas supplies, German consumers increasingly prioritize self-sufficiency. The Federal Network Agency reports that 45% of new PV installations in 2025 include battery storage, enabling households to store excess generation for nighttime use.
Technological Advancements Driving Efficiency
The industry's shift from P-type to N-type solar cells has significantly improved module efficiency, with top-tier panels now exceeding 22% conversion rates. Innovations like building-integrated photovoltaics (BIPV) have also gained traction, allowing solar panels to seamlessly blend into facades and roofs without compromising aesthetics.
Chinese manufacturers, which dominate global PV production, have entered the German market through partnerships with local distributors. This collaboration has ensured a steady supply of high-performance modules at competitive prices, further fueling the market's growth.
Challenges and Future Outlook
Despite the optimism, the market faces hurdles. Grid congestion in southern Germany has led to temporary curtailments of solar feed-in, prompting calls for infrastructure upgrades. Additionally, trade tensions between the EU and China over solar panel imports have created uncertainty, though German policymakers emphasize the need for open markets to avoid price spikes.
Looking ahead, analysts predict that Germany's household PV market will surpass 15 GW by 2030, accounting for 30% of the country's total renewable capacity. The Federal Ministry for Economic Affairs and Climate Action plans to introduce a "Solar Roof" mandate, requiring all new buildings to incorporate PV systems, cementing solar's role in the energy transition.
Conclusion
Germany's household photovoltaic market is a testament to the transformative power of policy innovation and consumer demand. As the nation races toward its 2030 climate goals, rooftop solar has emerged as a cornerstone of the energy landscape. With technological advancements and supportive policies in place, the sector is poised to redefine residential energy consumption for decades to come.
For more updates on Germany's renewable energy sector, follow our coverage.
EN
