German solar subsidy cap formally lifted, BSW calls for removal of market shackles

Facebook
Twitter
LinkedIn
Reddit
Email
Image: Cezary Piwowarski.

The German government has formally removed the contentious solar subsidy cap, prompting the country’s industry to go even further in pursuit of accelerated deployment.

Following a decision confirmed today, the 52GW cap has been removed from Germany’s Renewable Energy Sources Act (EEG).

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

The cap has proven particularly contentious, and its removal comes more than a year after the German solar industry first highlighted the potential for it to stymie the sector. Germany’s federal government first said it would lift the cap in late 2019, however progress has been slow and the industry had feared that the cap might not be formally removed prior to the German government rising for summer recess.

With solar installs in Germany currently around the 51GW mark, should the cap not have been formally lifted, a situation may have arose where installed systems would not eligible for subsidies.

But those fears have since been allayed with today’s parliamentary move, and Germany’s solar trade association the Bundesverband Solarwirtschaft (BSW) has lauded the move.

And the BSW has now called on the government to go even further, presenting a seven-point timetable for greater proliferation of solar in the country under the motto of ‘Let’s Go’.

Carsten Körnig, general manager of the BSW, said Germany’s solar and storage industries could make a “significantly more powerful contribution” to German climate targets whilst simultaneously creating at least 50,000 new full-time jobs in the sector.

The plan, which can be read in full here, intends to double the pace of solar installs next year ahead of a trebling of annual installed capacity by 2022. The plan also calls for a ten-fold increase in battery storage installations over the next ten years, with hydrogen also set to play a critical role.

Meanwhile the BSW has also called for urgent reform of existing policies, highlighting how a number of systems currently receiving EEG support are due to “fall out” of funding next year having been in operation for 20 years. While the BSW does not expect any follow-up funding, it has called for “barrier-free and non-discriminatory operation”.

2 February 2027
London, UK
Returning in 2027 for its 14th edition, Solar & Storage Finance Europe will bring together the brightest minds representing funds, banks, developers, utilities, government and industry across Europe and the UK on a programme that is solutions-focused from top to tail. The event is designed to enable leaders at the forefront of solar and storage investment and deployment in Europe to scale, learn and land themselves industry defining partnerships.

Read Next

November 5, 2026
After two months of module price decreases in Europe, all solar module and inverter types have gone up, according to the latest PV Index report from online solar marketplace sun.store.
November 5, 2026
IB Solar has signed an MoU with three German companies to develop a 2GW TOPCon solar cell manufacturing line at its facility in India.
Premium
November 4, 2026
Utility-scale solar generation in Australia's National Electricity Market (NEM) fell 3.3% to 1,746GWh in October 2026, its first monthly decline since June, as annual growth slowed to 4.4%.
November 3, 2026
'Technology is moving way faster than our ability to evaluate it,' said KIWA PI Berlin's Elene Garciandia at PV ModuleTech Europe.
November 3, 2026
Trina Solar, Tongwei and TCL Solar announced that they are exploring a wide range of module technologies at PV ModuleTech Europe conference.
November 3, 2026
The German Federal Network Agency, Bundesnetzagentur, has awarded 288MW of rooftop solar in the third auction of 2026.

Upcoming Events

Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
February 2, 2027
London, UK
Solar Media Events
April 20, 2027
Istanbul, Türkiye