Massive Growth of PV Capacity as a Major Cornerstone of Germany’s Energy Security and Climate Policies

Abstract

Germany was among the pioneers of solar energy development and deployment. Early pioneers installed first practically operating solar panels – solar thermal (ST) and solar photovoltaics (PV) – on rooftops. In the year 2000, the Renewable Energy Law (EEG – Erneuerbare-Energien-Gesetz) with technology-specific fixed-price guarantees (feed-in tariffs or FIT) kickstarted a major market penetration for PV and thus initiated economies of scale resulting in massive cost decreases. The EEG and the FIT showcased that Renewables, and in particular wind and solar PV, can be installed and become economically viable and increasingly competitive, even in distorted markets. This is when the success story of PV actually began. Today PV (together with windpower) is a major and in some regions dominant source of a stable energy supply, available in every country and in different climate conditions.

Ever since 2000, the EEG was further developed and regularly amended – and copied or adapted all around the globe. The EEG triggered the rapid growth of renewable energies, which are today the dominant technologies among new installed power capacity globally. PV in particular is to become the major source of energy (together with windpower) in a renewables-driven electricity system, which is already a reality in a growing number of regions and cities worldwide.

I’ll describe the status of PV in Germany and in particular the present government’s targets and policies to drastically increase the renewable share in Germany’s power supply from nearly 50% in 2022 to at least 80% in 2030 and 100% soon thereafter. This implies massive growth of wind (onshore and offshore) and PV capacity in less than a decade and continued until full decarbonisation of the energy system is achieved. Large-scale ground-mounted or floating systems and more and more residential and industrial rooftop or building-integrated installations will all have to play an important part in this growth strategy. I’ll assess the policies which are already enacted or still under development for different types and sizes of PV installations across the country, grid-depending and partly or wholly self-sufficient prosumers – from tailor-made auctions for larger scale installations via feed-in tariffs and behind the meter systems combined with storage for energy communities and energy sharing agreements.

I shall end with the most recent available installation and cost numbers for Germany (and the European Union to the extent data is available) and an outlook towards the end of the decade and towards 2050.