Germany's wind and solar expansion yields limited new power, raising cost concerns

Germany’s renewable‑energy build‑out is showing diminishing returns. Between 2020 and 2025, installed on‑shore wind capacity rose 25.2 % (an additional 14 GW), yet electricity generated from wind grew only 1.2 % and total generation in 2025 (106 TWh) was almost unchanged from 2020. Analysts cite weak wind years, competition from a rapid solar boom, grid bottlenecks, shading effects and the siting of many new turbines in low‑wind inland areas – especially in Bavaria (76 % of turbines on weak‑wind sites) and Baden‑Württemberg (51 %). Despite the limited output, subsidies continue, shifting costs to taxpayers, electricity consumers and industry.

Transmission‑system operator 50 Hertz CEO Stefan Kapferer warned that the pace of solar expansion should be slowed for the next five to six years. He urged a shift toward additional wind capacity, new gas plants and large‑scale storage, noting plans for more than 50 GW of batteries by 2028. On days of excess solar production, negative electricity prices forced the state to pay about €50 million in subsidies to export surplus power to Austria and Switzerland, highlighting the need for better balancing measures.

The situation underscores the challenge of delivering reliable, cost‑effective clean power while the German government pursues its renewable‑energy targets under the EEG law.