The year 2024 will bring significant changes to the German solar market that will affect both private households and companies. This article lists the most important changes and their effects. From rising electricity prices to new legal regulations - these developments will have a decisive impact on the landscape of the solar industry in Germany.

Rising electricity prices

From 2024, the German economy faces the threat of significantly higher electricity prices due to the increase in grid fees. Due to the removal of the federal government's subsidy for grid fees amounting to 5.5 billion euros, the fees will have to be adjusted accordingly. The transmission system operators have increased the grid fees for 2024 from an average of 3.12 cents per kWh to an average of 6.42 cents per kWh. Grid fees, which are part of the electricity price, make up around 20 percent of the electricity bill. According to the DIHK, companies would have to pay up to 20% more for their electricity.

‍Solar obligation

Various federal states in Germany are focusing more on solar energy from 2024 and are introducing solar obligations for certain types of buildings. An overview of the specific regulations in some federal states:

Rhineland-Palatinate: From 2024, all newly constructed public buildings and extensively renovated buildings will be obliged to use solar power, in addition to the existing obligation for commercially used new buildings and parking lots.

North Rhine-Westphalia: From 2024, the installation of PV systems will be mandatory for new non-residential buildings, from 2025 for all new buildings and from 2026 also for roof renovations, except in technically unsuitable conditions.

Hamburg: From 2024, the installation of a photovoltaic system with a minimum occupancy area of 30 % is mandatory for new buildings and existing buildings with roof renovations.

Bremen: From July 1, 2024, the use of a solar system will be required for fundamental roof renovations. From July 1, 2025, at least 50% of the gross roof area of new buildings must be planned for solar systems.

Hesse: From November 29, 2024, all existing state-owned buildings with a usable area of 50m² or more will be subject to the solar obligation. This applies to new buildings and extensions whose construction begins after November 29, 2023.

Module price trends

Prices for solar modules are currently in a trough, which should last until mid-2024. However, module prices are expected to rise again as soon as demand increases due to rising electricity prices. This offers an opportunity to enter the solar industry at favorable conditions.

Feed-in tariff

The remuneration rates for feeding your own solar power into the grid will fall again for the first time in February 2024. With the amendment to the EEG in July 2022, the remuneration rates were temporarily increased and the degression of the rates was suspended until the beginning of 2024. The impending reduction of 1 percent every six months from February 2024 means that future system operators will have to rethink their profitability calculations.

Solar package 1

The legislative package was originally due to come into force on January 1, 2024 and has now been postponed indefinitely to 2024. This delay is due to a budget deficit resulting from a ruling by the Federal Constitutional Court.

Among other things, the following changes are planned as a result of Solar Package 1:

More flexible direct marketing: The obligation to market solar power directly is to be made more flexible, particularly for systems with an installed capacity of over 100 kilowatts. Surplus quantities could be passed on to the grid operator without remuneration and the resulting direct marketing costs, which is particularly advantageous for system owners with high self-consumption.

‍Expansionof open spaces: More land is to be made available for solar parks, including the promotion of agri-photovoltaics, where solar modules are placed on arable land. The legislative package also plans to use sealed areas such as existing parking lots for solar parks.

Repowering: Regulations for the extensive renewal of existing installations (repowering) are to be improved. Old modules can be replaced, with the remaining remuneration entitlement being transferred to the new module.

Tenant electricity: It should be possible to implement the tenant electricity model in future with less bureaucracy. This would enable several tenants to jointly operate solar systems and benefit directly from them. The model is also to be extended to commercial buildings and garages.

Acceleration of grid connections: The grid connection of small solar systems is to be accelerated. In future, grid operators are to be obliged to respond to requests for the installation of PV systems with an output of up to 30 kWp within four weeks. If this deadline is not met, the systems will automatically be deemed approved. This regulation currently only applies to 10.8 kWp systems.

Simplifications for balcony solar systems: The installation and operation of balcony solar systems is to be simplified, among other things by eliminating the obligation to register with the grid operator.

Conclusion

In view of the upcoming changes in 2024, now is the ideal time to invest in photovoltaics. With rising grid charges and the introduction of new solar obligations, PV systems not only offer an opportunity to reduce operating costs, but also to actively contribute to climate protection.

Note: Please note that these legal regulations may change continuously. For this reason, no liability can be accepted for the statements made in this document.