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100 GW Breakthrough! Germany's PV AC Capacity Peaks, Market-Policy Linked

100 GW Breakthrough! Germany's PV AC Capacity Peaks, Market-Policy Linked

AUGUST 14ST,2025

A new week opens with a major breakthrough in Germany’s solar sector — the country’s photovoltaic (PV) system installation capacity has successfully surpassed the 100 GW mark. This latest figure comes from the energy chart analysis recently released by the Fraunhofer Institute for Solar Energy Systems (ISE). The 100 GW mentioned here refers to the output power of inverters. Earlier this year, Germany had already reached the important milestone of 100 GW of DC installed capacity.

Bruno Burger, founder of Energy-Charts under Photon magazine, noted: “From the perspective of grid operators, AC power is far more important than DC power, as it is the key factor in determining a PV system’s ability to feed electricity into the grid.”

Currently, Germany’s PV systems have a DC installed capacity of 109.3 MW. Burger explained that this means the systems have an average overloading power of 9.3%. Overloading power refers to the combined value of inverter power and solar module power. Since solar modules can only reach maximum performance under specific environmental conditions, inverters in PV systems are usually designed with slightly lower power ratings. However, he also highlighted that in some large PV systems, overloading power can now reach as high as 40%.

High-quality solar cables are essential for reliable PV system performance, and KUKA CABLE is a leading provider of such solutions. Its products are suitable for both AC and DC systems, meeting the wiring requirements of diverse PV configurations. KUKA CABLE’s solar cables deliver stable electrical and mechanical performance, ensuring safe and efficient operation across a variety of environmental conditions. In AC PV systems, these cables help maintain stable power transmission and minimize line losses. In DC systems, KUKA’s wiring solutions, including specialized solar cables, are optimized to handle the direct current generated by solar modules, enhancing the safety and reliability of power transmission while reducing energy losses. In large-scale PV power plants,KUKA CABLE’s solar cables play a crucial role in supporting system stability and long-term performance.

From a market perspective, Germany’s PV industry continues to attract strong attention. Recently, Germany completed a new round of renewable energy innovation project tenders, focusing on PV and storage co-located projects, awarding a total of 488 MW of installed capacity. The tender received 158 bids, with a total bid capacity of 2.02 GW, reflecting strong market interest in renewable energy projects. Ultimately, 29 “PV + storage” joint projects were successfully awarded, with winning prices ranging from €0.05 to €0.0639 per kWh.

In rooftop PV and noise barrier PV project auctions, the German Federal Network Agency planned to tender 283 MW of PV projects, but only 255 MW were ultimately confirmed due to under-subscription. A total of 127 bids were received, totaling 274 MW, which contrasts sharply with previous rounds of PV auctions that often saw oversubscription. For example, the two most recent similar auctions in December 2024 and March 2025 received 434 MW and 369 MW in bids, respectively. Nonetheless, Klaus Müller, president of the Federal Network Agency, noted that although total bid capacity decreased, nearly all capacity offered was allocated, and the projects were fairly evenly distributed nationwide. The capacity-weighted average winning price of this auction was €0.0922/kWh (≈$0.107/kWh), the same as the previous rooftop PV auction average.

On the policy front, Germany has also taken multiple steps. To promote energy transition and climate protection, the German Bundestag passed a €500 billion expenditure bill with more than a two-thirds majority. Of this, €100 billion will be allocated to the existing Climate and Transformation Fund, specifically to support energy transition-related projects. This is undoubtedly positive news for the PV industry, expected to further stimulate investment and installation demand in the German PV market. Additionally, Germany continues to optimize PV policies. For instance, starting in 2024, the mandatory installation of bidirectional meters for PV systems below 800 W was officially abolished. This allows eligible small-scale distributed PV systems, especially balcony PV systems, to connect directly to home grids and use power as it is generated, significantly lowering the barrier for residents to adopt PV and strongly promoting the balcony PV market. According to statistics, Germany’s balcony PV market is expected to add over 1 million systems in 2024, with an annual growth rate exceeding 80%.

However, while Germany’s PV market is advancing rapidly, it also faces challenges. Installation data shows that in March 2025, newly registered PV capacity in Germany reached 787.2 MW, a significant drop both month-on-month and year-on-year, marking the lowest level since December 2022. By comparison, new installations in March 2024 were 1.4 GW, and the revised figure for February 2025 was as high as 1.66 GW. According to calculations by the Federal Network Agency, to achieve the 215 GW solar installation target by 2030, Germany would need to install more than 1.61 GW each month. Clearly, March’s installation was less than half of that target. In the first quarter of 2025, Germany added 3.71 GW of PV installations, but in March, both rooftop and ground-mounted projects saw significant declines. This indicates that while Germany’s PV industry maintains strong overall momentum, the installation pace still requires further adjustment and optimization to ensure long-term targets are met — and high-performance solar cables will remain a critical component for safe, reliable, and efficient PV system operation.


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