Solar Installations Fall 6% in Germany as Subsidy Cuts Loom

Newsworm
Newsworm
with
AFP
May 3, 2026
Germany's solar energy sector experienced its first significant contraction in years during Q1 2026, with new installations declining 6% compared to the same period in 2025. The German Solar Industry Association reported 3.5 gigawatt-peak of new capacity, marking a concerning reversal in the country's renewable energy expansion. Residential installations bore the brunt of the decline.
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Solar Installations Fall 6% in Germany as Subsidy Cuts Loom
The expansion of solar energy in Germany slowed significantly in the first quarter of 2026. According to the German Solar Association (BSW), six percent less new solar capacity was installed than a year earlier. - AFP

The expansion of solar energy in Germany has slowed considerably in the first three months of this year. According to the German Solar Industry Association (BSW-Solar), new solar installations with a capacity of 3.5 gigawatt-peak were commissioned in the first quarter of 2026, approximately six percent less than in the same period last year, the association announced in Berlin on Saturday.

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The association issued an urgent warning against cuts to solar subsidies in light of this development. The decline was particularly pronounced in certain market segments. According to BSW-Solar, there was a 21 percent decrease in the residential segment from January to March 2026, such as rooftop systems on residential buildings.

For rooftop installations on commercial buildings, the decline was even steeper at 33 percent compared to the first quarter of 2025. However, ground-mounted photovoltaic systems saw an increase of 20 percent.

Industry Leaders Warn Against Policy Changes

"Anyone putting the brakes on solar energy now is damaging Germany's business location and throttling the most popular energy price dampener among the population," declared Managing Director Carsten Körnig. He was specifically addressing legislative plans by Federal Economics Minister Katherina Reiche (CDU), who wants to completely eliminate the so-called feed-in tariff for newly installed small solar systems starting in 2027.

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Economic Crisis May Boost Demand Temporarily

For the coming weeks, BSW-Solar expects at least a slight revival in demand as a result of the current energy crisis. Additionally, there are likely to be pull-forward effects due to the impending cuts in subsidies by the black-red federal government. "However, a temporary solar boom, should it materialize, does not replace reliable investment conditions," Körnig cautioned.

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