Solar Power Surpasses Five Million Installations in Germany

Milestone Reached in Germany’s Energy Transition

Germany has officially surpassed the five-million mark in solar power installations. According to the Federal Network Agency, over 5,005,000 photovoltaic (PV) systems were registered nationwide as of early April 2025. The Bundesverband Solarwirtschaft (BSW-Solar), Germany’s solar industry association, called it a milestone in the country’s energy transition. With 104 gigawatts (GW) of installed capacity, solar energy now covers nearly 15 percent of Germany’s electricity demand.

The rapid expansion is being driven not only by large rooftop and ground-mounted systems but also by a boom in compact plug-in balcony units. These small-scale systems are particularly popular among tenants and condominium owners who lack access to traditional rooftop spaces.

Where the Power Comes From

Out of the total solar capacity, about 38 percent is installed on private home rooftops, 29 percent on commercial and industrial buildings, and 32 percent on open fields. Balcony power plants—small solar units installed on apartment balconies—account for roughly one percent of total capacity but make up the second-largest category by number of units. There are currently 870,000 such systems in operation.

Despite their small individual output, balcony systems play a critical role in expanding solar access. In the first quarter of 2025 alone, over 81,000 were registered, although actual figures may be higher due to delayed reporting or missed registrations.

Freestanding solar parks continue to contribute a significant share of total output. Although only about 19,000 of these installations are active, their combined output of 31.5 GW demonstrates their impact. Newer forms such as floating solar arrays and installations on large parking lots have also begun to appear, albeit still at a minor scale.

Sharp Growth in New Installations

Germany has seen an unprecedented rise in new PV installations. Since the beginning of 2024, approximately 1.25 million systems have been added—more than half a million of them being balcony power stations. This expansion is supported by favorable regulatory changes, technological accessibility, and increased public interest in decentralized energy generation.

The growth reflects a transformation in energy consumption habits. Many consumers have become “prosumers”—individuals who both consume and produce energy—marking a shift in how power is generated and used in the country.

Local Challenges: The Case of Stuttgart

Despite the national progress, some cities struggle to meet local energy transition targets. In Stuttgart, the municipal utility company has installed over 900 PV systems since its founding 13 years ago. These installations generate about 13.6 million kilowatt-hours annually, supplying electricity for nearly 4,000 households.

Yet this represents only a fraction of the city’s needs. According to the 2023 Energy and Climate Report, Stuttgart’s total installed solar capacity reached 80 MW, of which just 14.5 MW is operated by the city utility. To become climate neutral by 2035, the city would need to expand to at least 520 MW, more than six times the current capacity.

Large-scale solar parks outside Stuttgart—such as those acquired in Rhineland-Palatinate—provide more output but do not count toward Stuttgart’s local emissions targets. Critics argue that such offsite investments do not directly improve the city’s own climate balance.

Barriers and Solutions in Urban Areas

One major challenge is the high percentage of multi-family dwellings in cities like Stuttgart. Shared solar systems in apartment buildings are often hindered by complex ownership structures and costly metering requirements. As a result, property owners often forgo shared PV investments due to concerns about economic viability.

To address this, Stuttgart’s utility has partnered with local housing associations to install larger shared systems. One such partnership aims to install 25 MW of PV capacity across 9,000 housing units by 2035. However, officials already anticipate delays in reaching these goals. Another collaboration targets 5 MW of capacity and includes 150 completed installations, with 110 more under construction or in planning.

Meanwhile, private homeowners increasingly prefer managing installations independently, leading the utility to scale back its residential offerings.

Solar Energy’s Popularity and Policy Legacy

Germany’s solar boom owes much to the Renewable Energy Act (Erneuerbare-Energien-Gesetz, EEG), which turned 25 this year. Originally designed to promote investment in renewable energy, the EEG helped transform solar from an expensive satellite technology into the world’s most affordable source of electricity. This legal framework enabled a surge in small and medium-scale installations and helped millions become energy producers.

BSW-Solar emphasized that no other form of electricity generation enjoys such widespread support among the population. The association views the current trend as proof that solar energy is no longer a niche sector but a mainstream component of the national grid.

Looking to the Future

While growth remains strong, the transition to a fully solar-powered grid still faces regulatory, structural, and economic hurdles. Urban environments require more flexible policies and technical innovations to accommodate shared systems. Meanwhile, national momentum continues, thanks to the democratization of solar energy through smaller, user-friendly units and sustained support for rooftop and freestanding systems.

Germany’s solar journey has reached a symbolic milestone with over five million installations—but scaling to meet long-term climate goals will require even greater speed, cooperation, and ingenuity.