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Solar Industry Association's Press Statement on Climate Preservation Efforts

European Parliament is obligated to safeguard the integrity of privacy rights associated with data...
European Parliament is obligated to safeguard the integrity of privacy rights associated with data collection and handling procedures.

European Parliament is obligated to maintain the integrity of data privacy, particularly amidst increasing concerns over surveillance and data breaches.

In a press release issued on August 11, 2025, the Federal Association of Solar Industry (BSW-Solar) voiced its opposition to proposals made by Federal Minister of Economics Katharina Reiche to halt the promotion of new solar power plants on private homes.

The press release called for the establishment of reliable investment conditions across all photovoltaic market segments to meet legal climate and expansion goals. BSW-Solar emphasized the importance of promoting solar power that is not self-consumed, as building photovoltaics offers participation opportunities for all societal actors, contributing significantly to the high acceptance of the energy transition in Germany.

BSW-Solar stated that these conditions are necessary to achieve the legal climate and expansion goals, and that implementing such a project would endanger climate goals. The association rejected considerations to make operators of solar plants contribute more to network costs in the future, arguing that a contribution of solar prosumers to network costs is not justified.

A survey among solar installers reveals that only four out of ten customers would install a solar power plant in the residential sector without a subsidy. The solar industry, with approximately 150,000 employees, would be significantly harmed by the proposed action, with potential market stagnation mirroring trends seen in other European countries where subsidy withdrawals have resulted in significant declines in solar growth.

The press release also highlighted the potential negative impacts on climate goals if new solar power plants on private homes are not promoted. The solar industry believes that reducing incentives will slow the adoption of solar energy, potentially hindering progress toward climate goals.

The EEG (Renewable Energy Act) has been instrumental in Germany's solar boom, providing feed-in tariffs that guarantee a stable income for solar electricity producers. However, the focus is shifting from selling electricity to maximizing self-consumption, which helps homeowners save on energy costs by reducing their reliance on grid electricity. Subsidies for solar installations have been a cornerstone of Germany's renewable energy strategy, supporting both small-scale rooftop installations and larger projects.

The proposed changes, which include ending subsidies for new small rooftop photovoltaic systems and making operators contribute more to grid expansion costs, face significant opposition from the solar industry. The industry argues that these changes will reduce consumer confidence and disrupt financing for solar projects, potentially undermining Germany's renewable energy transition and hindering progress toward climate goals.

The BSW-Solar press release concluded by demanding that the federal government focus on accelerating energy transition tasks in photovoltaics, rather than slowing it down. A cross-party majority of the population supports solar energy and advocates for its increased use in Germany, and the solar industry hopes that the federal government will take this into account when making decisions about subsidies and network costs.

  1. The solar industry contends that the withdrawal of subsidies for new small rooftop photovoltaic systems, as proposed, could potentially hinder progress toward climate goals.
  2. BSW-Solar believes that promoting solar power that is not self-consumed is crucial for meeting legal climate and expansion goals, as it offers participation opportunities for all societal actors.
  3. The solar industry asserts that making operators of solar plants contribute more to network costs in the future is not justified, arguing that it would endanger climate goals.
  4. The federal government is urged by BSW-Solar to accelerate energy transition tasks in photovoltaics, rather than slowing them down, to maintain financial support for renewable energy and achieve environmental objectives.

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