German solar expansion picks up as Iran war, subsidy cuts drive demand

Germany's solar power expansion accelerated in the first half of the year, driven by the Iran war and plans by the government to cut subsidies, the German Solar Association said.

New solar installations with a combined capacity of around 7.4 gigawatt peak (GWp) were connected to the grid between January and June, according to preliminary figures from Germany's Federal Network Agency analysed by the association. That was 9% more than in the same period last year.

Germany now has more than 6 million photovoltaic systems installed, with a combined capacity of more than 125 GW.

Demand among private homeowners had cooled last year, but interest has picked up again following the outbreak of the Iran war in late February and the government's plans to end subsidies for privately owned solar systems, the association said.

The planned withdrawal of solar subsidies has triggered a pull-forward effect, the association said. The association expects the first-half figures to be revised higher as late registrations are added. Based on previous years' experience, new solar capacity installed in the first six months could reach as much as 8.3 GWp.

German Solar Association chief executive Carsten Körnig urged the government not to slow the expansion of solar energy.

From a climate, energy and economic policy perspective, there is no way around a stronger expansion of photovoltaic systems and battery storage, Körnig said.