Germany's solar sector saves billions, confronts proposed subsidy cuts

Installed solar capacity in Germany—about six million installations—generated roughly 390 billion kWh between 2020 and 2025. The output displaced fossil‑fuel power, avoiding more than €20 billion in energy imports and up to €250 billion in projected climate‑damage costs, according to the Bundesverband Solarwirtschaft (BSW‑Solar) and the Umweltbundesamt. The sector now employs around 120 000 people and generates about €30 billion in annual revenue, while a YouGov poll shows roughly 70 % of Germans favour further expansion of renewables and storage.

The federal government is considering ending the feed‑in tariff for new small rooftop solar systems under a draft amendment to the Renewable Energy Act. Bavaria’s state government warned that an abrupt removal could sharply reduce PV roof installations, calling for a gradual approach that strengthens market integration without stalling growth. Green Party spokesperson Martin Stümpfig echoed the concern, noting that rooftop solar is often the first step toward household and corporate energy independence. Solar industry leaders such as Carsten Körnig (BSW‑Solar) and Leonhard Gandhi (Fraunhofer ISE) highlighted the sector’s role in climate protection, economic stability and resilience against geopolitical energy shocks.