PV lowers electricity exchange price by 15 percent on average

29.10.2025

Source: E & M powernews

A study commissioned by the PV industry shows that solar power reduces electricity prices in Germany by billions of euros. According to the BSW, subsidies for PV systems must therefore remain in place.

A recent study by the Berlin-based consulting firm Enervis on behalf of the German Solar Industry Association (BSW-Solar) shows a significant reduction in costs through PV. According to the study, photovoltaic systems reduce electricity costs for consumers, trade and industry by billions of euros every year. Without solar power, the market price for electricity would have been 15 percent higher on average in 2024, according to the study.

Overall, the solar savings would have amounted to 6.1 billion euros. Added to this would be income from electricity exports amounting to 1.3 billion euros. According to the analysts' calculations, an average private household saves around 50 euros per year due to the existing share of solar power in the grid. Industry also benefits from the solar price effects. For example, a company with an annual consumption of 10 million kWh paid around 120,000 euros less for electricity last year.

The share of photovoltaics in the German electricity mix was around 15 percent in 2024. Enervis estimates that this figure could roughly double in the next ten years. According to Enervis, solar systems will continue to have a dampening effect on electricity prices in the future. In 2030, the wholesale price of electricity could be around 21 percent lower due to the planned further expansion of photovoltaics. This would reduce the annual electricity bill of a private household by more than 70 euros.

Cost containment can be increased in future

According to the study, industrial companies with a consumption of 10 million kWh could then save around 180,000 euros per year. In addition, rising climate impact costs in the billions would be avoided. "It is now not only the approximately three million households with their own system that benefit from cheap solar power, but all citizens," said BSW Managing Director Carsten Körnig. The solar price damper on the electricity exchange is also increasingly easing the burden on the economy.

In order to continue this development, the expansion path for photovoltaics, which was set by law in 2023, must be consistently pursued. "Attractive and reliable framework conditions are necessary in order to continue to reap the rewards of the energy transition," says Körnig. Against this backdrop, the association criticizes the plans announced by Federal Minister of Economics Katherina Reiche (CDU) to cancel subsidies for new, smaller solar installations. Reiche argues that new PV systems are increasingly profitable even without subsidies.

PV subsidies to be retained

However, the governing coalition has not yet decided on the proposal.
BSW-Solar warns that cuts to EEG subsidies could lead to a slump in expansion. According to a survey conducted by the association among installation companies, only around four out of ten customers in the private segment would purchase a PV system even without subsidies. A representative survey of property owners conducted by the opinion research institute "YouGov" confirms this assessment: only around 12 percent of those surveyed would definitely install a PV system if the subsidy were removed.

According to BSW-Solar, public opinion is also against cuts. In another You Gov survey, eight out of ten of around 2,300 respondents said they wanted to maintain or accelerate solar expansion. Among SPD and CDU/CSU voters, approval was even higher. Around three quarters of CDU/CSU supporters are also in favor of unchanged or increased financial support for photovoltaics.

The association is therefore appealing to the German government to reconsider planned cuts in subsidies. Only with stable framework conditions can photovoltaics fully develop its price-dampening effect and contribute to climate protection as well as to relieving the burden on electricity customers.

Author: Susanne Harmsen