Electricity prices 25 percent higher without PV

08.04.2025

Source: E &M powernews

Bundesverband Solarwirtschaft: The five millionth solar system will soon be installed in Germany.

"The five millionth registered solar power system is expected to go into operation in Germany shortly," announced the BSW Solar Association. This estimate is based on the current registration figures at the Federal Network Agency, where all new photovoltaic systems are recorded. Last year alone, more than one million solar systems with an output of around 17,000 MW were newly installed, according to BSW Solar.

There are currently around 104,000 MW of installed solar power capacity in operation in Germany. PV systems on single-family homes account for around 38 percent of this output, while systems on company roofs account for around 29 percent. A further 32 percent comes from ground-mounted systems, while just under 1 percent is accounted for by balcony systems.

BSW Solar, based in Berlin, points to the high level of acceptance of the technology: "No other form of electricity generation enjoys such great popularity among the population," says the association.

Analysis: Price reduction for all consumers

However, it is not only system operators who benefit from photovoltaics. According to an analysis by the energy industry consultancy Neon, prices on the electricity exchange would be around 25 percent higher than they currently are without solar power production. This dampening effect on the electricity price level relieves the burden on all electricity consumers in Germany - according to Neon, the savings now add up to around 9 billion euros per year.

For an average private household, this results in electricity cost savings of around 80 euros per year. According to the analysis, industrial companies record savings of around 10 percent. Those who generate their own solar power can reduce costs even further.

For example, a photovoltaic system measuring around 70 square meters is enough to cover the electricity requirements of a four-person household - including the electricity consumption for a heat pump and an electric vehicle with an annual mileage of 20,000 kilometers.

"The further expansion of solar energy has therefore long been a question of economic rationality. The growth in recent years is encouraging. However, they are still not enough to achieve the climate targets in the long term," says Carsten Körnig, Managing Director of the association.

Author: Stefan Sagmeister