Fewer new solar power systems are being built in Germany, with newly installed capacity down 6% in the first quarter year-on-year, according to calculations by the German Solar Industry Association (BSW-Solar) based on data from the Federal Network Agency.
The total maximum capacity was around 3.5 gigawatts.
The decline was particularly sharp in the residential sector. Peak capacity in the home segment dropped by 21% to 0.85 gigawatts. In the commercial rooftop segment, which features larger systems, the decline was even steeper at 33% to 0.6 gigawatts.
Even the comparatively small and inexpensive “balcony power plants,” small solar panels whose output is limited to 800 watts, showed signs of slowing down, with new installations declining 6% to 0.09 gigawatts.
Strong growth in ground-mounted systems cushioned the overall drop. These are usually fewer but larger installations. Capacity of newly installed systems in this segment rose 20% to 1.97 gigawatts.
BSW-Solar warned against further cuts to subsidies. The association expects for demand to pick up in the coming weeks as a result of the recent energy crisis and in anticipation of possible subsidy cuts. But this does not replace reliable investment conditions, said BSW boss Carsten Körnig.
The energy crisis is demonstrating how important it is to make Germany less dependent on expensive energy imports through to quickly expand renewable energy and storage, said Körnig. “Anyone who hits the brakes on solar energy now is harming the business climate and curbing the most popular means of keeping energy prices down for citizens.”