Germany’s solar energy expansion is gaining momentum, with recent data showing a significant increase in newly installed capacity, primarily driven by investments from farmers and businesses, while private homeowners are slightly scaling back.
Solar energy growth in Germany
The expansion of solar energy in Germany continues to accelerate. According to the German Solar Industry Association, the newly installed capacity from January to July 18 was 25% higher than in the first half of 2023, based on interim data from the Federal Network Agency. As of July 18, the total gross capacity of all German solar installations reached 90.4 gigawatts-peak (GWp). In 2023, these installations accounted for approximately 12% of the country’s total gross electricity consumption, producing 62 terawatt-hours (TWh) of electricity.
This increase comes amid broader global trends in solar energy, with the International Energy Agency (IEA) predicting that photovoltaic systems alone will meet about half of the global increase in electricity demand this year and next. Solar and wind energy combined are expected to cover three-quarters of this growth.
Shifts in the private sector
Despite private homeowners still accounting for around 40% of the newly installed solar capacity, the number of new installations in the residential segment decreased by 5% compared to the previous year. Instead, companies and farmers are now leading the charge in new solar installations.
The capacity of solar installations on commercial rooftops and open spaces has increased significantly. There was a 37% increase in ground-mounted solar systems, a 21% rise in installations on commercial roofs, and a 3% increase in balcony solar systems in the first half of the year.
Global solar energy trends
Globally, solar power capacity is also on the rise. The IEA expects that solar energy will play a crucial role in meeting the rising global electricity demand. Leading this growth is China, which is constructing 64% of the world’s new solar and wind capacity, nearly twice as much as the rest of the world combined, according to a study by the US-based NGO Global Energy Monitor.
Following China at a considerable distance are the USA, Brazil, the UK, and Spain. China’s investments in renewable energy have significantly contributed to its economic growth, with the Centre for Research on Energy and Clean Air in Finland attributing 40% of China’s economic growth last year to its investments in green technologies.
Controversies surrounding Chinese solar panels
However, China’s dominance in the solar industry has not been without controversy. The country is also building numerous new coal power plants, officially to ensure a smooth transition to renewable energy. This move has drawn international criticism, as have China’s overcapacities in the wind and solar industries. These overcapacities have led to foreign competitors struggling to compete on price. The European Commission is currently investigating whether these overcapacities are a result of state subsidies intended to create a pricing advantage abroad.
China’s aggressive investment strategy in renewable energy and its impacts on the global market underscore the complex dynamics of the global shift towards sustainable energy sources. The ongoing investigations and critiques reflect the challenges and geopolitical considerations intertwined with the global energy transition.
