Europa Posted on 2026-07-18 11:16:00

Solar power expands in Germany - Iran war and subsidy cuts boost demand

From Dorian Koça

Solar power expands in Germany - Iran war and subsidy cuts boost demand

The expansion of solar power in Germany accelerated in the first half of the year, driven by the war in Iran and government plans to cut subsidies, the German Solar Energy Association said.

New solar installations with a combined capacity of around 7.4 gigawatts were connected to the grid between January and June, according to preliminary figures from Germany's Federal Grid Agency, analyzed by the association. That was 9% more than in the same period last year.

Germany now has more than 6 million photovoltaic systems installed, with a combined capacity of more than 125 GW.

Demand among private homeowners had cooled last year, but interest has picked up again following the outbreak of the Iran war in late February and government plans to end subsidies for privately owned solar systems, the association said.

The planned end of solar subsidies has caused a pull-forward effect. The association expects the first half of the year figures to be revised upwards as late registrations add up. Based on past years’ experience, new solar capacity installed in the first six months could reach up to 8.3 GWp.

The association urged the government not to slow down the expansion of solar energy. From a climate, energy and economic policy perspective, there is no other way than a stronger expansion of photovoltaic systems and battery energy storage.

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