A broad German alliance is calling on the federal government to continue supporting rooftop solar
It argues that rooftop solar helps keep electricity prices low and boosts public participation in the energy transition
The group says subsidies remain necessary, warning that without an attractive funding framework, residential solar installations could more than halve, having already fallen about 25% in 2025
Smaller solar systems need stable policies, smart meters, and market mechanisms before subsidies can be safely phased out
A broad alliance of business and civil society organizations in Germany is urging the federal government to continue subsidizing the rooftop solar segment in the country. It instead demands creating suitable conditions for the segment’s expansion.
This demand follows the Federal Minister for Economic Affairs, Katherina Reiche, revealing plans to do away with subsidies for new rooftop solar installations in the country (see Germany Mulling End To Subsidies For Small-Scale Solar Systems).
Signatories to the joint appeal argue that solar PV helps secure permanently low electricity prices for businesses and consumers through its ‘price-dampening effect’ on the electricity exchange, enables millions of citizens to actively participate in the energy transition, and enjoys very high levels of public acceptance.
They point out that new home solar systems are these days usually combined with battery storage, electric vehicles (EVs), or heat pumps, thus reducing pressure on the grid. Additionally, for every kWh of new EEG-subsidized rooftop PV systems on private homes, about 2 kWh of unsubsidized solar power is consumed on-site. This helps lower their reliance on subsidies.
Yet, subsidies and government support are still required, they argue. According to a YouGov survey commissioned by industry body BSW-Solar, without an attractive funding framework, residential solar installations will likely more than halve. It claims that private demand for rooftop solar installations dropped by around 25% in 2025 compared to the previous year.
In such a market situation, further deterioration of the framework conditions would inevitably be disastrous, warns BSW-Solar’s Managing Director, Carsten Körnig.
They recommend that the federal government maintain the stability of the policy framework, as rapid expansion of renewable energies is essential for Germany to achieve its climate targets. EEG subsidy remains a ‘necessary safety net’ for a vast majority of new PV customers.
Large solar systems with a capacity of 100 kW and above already sell their electricity directly on the power market. Smaller solar systems are expected to do the same in the future and respond more to market prices, but only after smart meters and suitable market systems are fully in place, they stress, to avoid slowing solar adoption.
The joint appeal is signed by over 20 million individual members, including more than 50,000 companies comprising leading associations from the SME sector, the housing industry, consumer protection, environmental protection, electrical and digital industries, electrical trades, energy services, contracting, citizen energy, and energy cooperatives, along with renewable energy and storage sectors.