Analysts: Legal hurdles to stifle German clean energy momentum

Facebook
Twitter
LinkedIn
Reddit
Email
Germany has been slower than Southern European peers in embracing subsidy-free solar, with the first reported deal only signed this May (Credit: BayWa r.e.)

Germany risks missing its own renewable targets unless it acts to remove legislative obstacles, according to the Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW) and the Federal Association of the Energy and Water Industry (BDEW).

The duo published estimates this week suggesting renewables covered 44% of Germany’s electricity use in H1 2019, a gain on the 39% recorded in H1 2018 and also an all-time record.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

At 24 billion kWh, PV accounted for 8% of Germany's electricity use in H1 2019, according to ZSW and BDEW. It doubled offshore wind's 12 billion kWh but was doubled in turn by onshore wind's 55.8 billion kWh.

Stefan Kapferer, CEO of BDEW, said the “pleasing snapshot” should not mask the structural problems he claimed stand between Germany and its 65% renewable goal by 2030.

Berlin, Kapferer said, should clear hurdles including land and subsidy restrictions for PV and wind. Under business as usual the country would only reach a 54% renewable share by 2030, he added.

Europe’s PV giant looks beyond subsidies

As noted by Fraunhofer ISE earlier this year, Germany has for years restricted large-scale PV across arable land, pushing developments to brownfield sites or land by roads and railways.

Another potential obstacle is the prospect of a subsidy freeze, which under current law will kick in once today's 47GW-plus PV capacity hits 52GW. Local players recently told PV Tech the threshold could be crossed as early as H1 2020.

How Germany’s industry will fare if the subsidy cap is not reversed has become a talking point in recent months. The country has been slower than Southern European peers in embracing corporate renewable PPAs, despite analyst claims of vast, untapped potential.

In parallel to the debate, German PV has notched up bullish performance at auctions, pushing average prices to new lows. However, Wood Mackenzie has warned the country – as well as others in Europe – that cannibalisation could become a reality if costs continue to slide.

3 November 2026
Málaga, Spain
Understanding technology and supplier selection for Europe’s utility-scale PV market in 2027. PV ModuleTech Europe 2026 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of PV module, inverter and battery supplier selection; product availability, technology offerings, supply chain traceability, quality assurance, factory auditing, system reliability, and supplier bankability.

Read Next

July 31, 2026
FIC has acquired Perfect Power, developer and owner of the Jaguar Energy Centre, a planned 1.15GW solar and battery storage platform.
July 31, 2026
The Colombian Ministry of Mines and Energy has awarded 995MW of solar PV and nearly 100MW of battery energy storage system (BESS) in a clean energy procurement auction.
July 31, 2026
German solar research centre the Fraunhofer Institute for Solar Energy Systems (Fraunhofer ISE) has signed an agreement with Himachal Pradesh University to pursue research into floating solar PV.
July 31, 2026
Avaada has secured approximately US$1.3 billion in debt to fund a 2.15GW portfolio of hybrid and solar projects in Gujarat and Maharashtra.
July 31, 2026
First Solar reported net sales of US$1.06 billion for Q2 2026, down 4% year-on-year, while reaffirming its full-year 2026 guidance.
July 31, 2026
German energy company RWE has sold its US distributed clean energy generation business to Goldman Sachs.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
April 20, 2027
Istanbul, Türkiye