German govt agrees on reforms to boost solar expansion

The German government has agreed on a package of legislative reforms aimed at reducing bureaucracy and speeding up the expansion of photovoltaics and solar power storage facilities in the country.

The draft reforms, known as Solar Package I, should be enacted by the parliament in one of the next two sessions.

The proposed measures will simplify the registration of balcony solar systems and will make access to affordable solar power easier for property owners and tenants.

The package also provides for simplifications in the repowering of solar roofs and the direct marketing of solar power.

The planned measures will facilitate the construction of solar power plants on open areas. Facilities with an installed capacity of up to 50 MW will be eligible for funding compared with 20 MW so far.

The government further plans to ease power grid connections. A simplified process introduced in 2023 for facilities with a capacity of up to 10.8 kWp will be expanded to cover systems up to 30 kWp.

In addition, a separate auction segment with a maximum value for special solar systems such as agri-PV, floating solar and carport installations will be introduced in the tender for ground-mounted solar projects.

The German solar industry association BSW Solar welcomed the reforms but expressed disappointment that no agreement was reached in relation to measures to support domestic solar manufacturers in the face of competition from Asia and the USA.

Commenting on the measures, the association manager Carsten Koernig noted: “Climate protection, private households, and commercial enterprises will benefit. However, domestic solar module factories will unfortunately largely miss out."

In February, solar panel manufacturer Solarwatt indicated it may have to shut down its factory in Dresden, Germany, if the government does not find a solution against unfair competition from China, according to statements by CEO Detlef Neuhaus cited by newspaper Handelsblatt.

In parallel, Swiss manufacturer Meyer Burger Technology AG (SWX:MBTN) is shutting down its solar module factory in Germany due to the deteriorating European market. The decision marks another setback for the German sector after photovoltaic (PV) inverter maker SMA Solar Technology AG announced in December an intention to open a 3.5 GW production plant in the USA.

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