The current times are characterized by crises. One crisis, whose origins arguably date back to the Industrial Revolution, is climate change. To counteract this, Germany has set itself the goal of being greenhouse gas neutral by 2045—meaning net greenhouse gas neutrality, i.e. achieving a balance between anthropogenic emissions of greenhouse gases from sources and the reduction of such gases by sinks. In the electricity sector, this balance is to be achieved 10 years earlier, i.e. by 2035. 

Expansion of renewable energies

In order to achieve the targeted greenhouse gas neutrality in the electricity sector, at least 80 percent of gross electricity consumption is to be covered by renewable energies by 2030 as an interim target. Among other things, this is to be achieved by increasing installed PV capacity to 215 gigawatts (GW) by 2030. 

In 2022, the installed PV capacity in Germany was approximately 60.1 GW (source: Working Group on Renewable Energy Statistics, February 2023). If the difference to the target of 215 GW is distributed evenly over the years until 2030, this means a required annual expansion in PV capacity of 22 GW. This would require a tripling of the current annual expansion of 7 GW. 

Measures to accelerate the expansion of PV capacity

In order to triple current PV expansion, the BMWK has presented various measures in its PV strategy. According to the BMWK, the PV strategy in its current version should be understood as open to development, i.e. neither complete nor conclusive. This character can be seen in some of the measures presented in the PV strategy. For example, the PV strategy remains vague on the planned interlocking of energy and tax law. 

Below you can find an overview of the most important measures presented in the PV strategy: 

• Greater expansion of free field systems: The BMWK sees free field PV systems as an opportunity for rapid scaling of PV expansion. Free field PV systems are solar systems that are not installed on, at or in a building or other structural facility that was constructed primarily for different purposes than generating electricity from solar energy. 

In order to accelerate the expansion of free field PV systems, facilitations under building law are to be implemented (including privileges in the German Building Code (Baugesetzbuch) and simplified development plan procedures). The strategy proposes increasing the expansion of agri-PV systems and introducing a new category—parking lot PV systems. This is intended to make use of already sealed areas for free field PV systems.

• Facilitation of rooftop PV systems: Rooftops—ranging from those of single-family homes up to those of large logistics centers—are to be equipped with PV systems. The BMWK mentions as possibilities on-site use of the generated electricity (for charging electric cars, supplying heat pumps or domestic storage facilities with renewable electricity or self-consumption in industry and commerce) as well as remunerated full or partial feed-in into the grid. To facilitate the expansion of rooftop PV systems, existing barriers are to be removed. This is to be done, for example, by adjusting the limit for the direct marketing obligation. In addition, regulations in the Renewable Energies Act (Erneuerbare-Energien-Gesetz) on the aggregation of plants are to be revised. This in turn will have an impact on the level of remuneration, the obligation to participate in tenders and various technical requirements. Also, instead of the current lower remuneration for free field systems, buildings in outdoor areas are to receive a higher remuneration for roof-mounted systems. Another positive aspect is the consideration of allowing repowering (modernization of plants) for rooftop PV systems. 
• Simplification of landlord-to-tenant electricity supply and joint building supply: The BMWK would like to simplify the already existing option of the landlord-to-tenant electricity supply model and make it more widely used. The landlord-to-tenant electricity supply model represents a marketing tool for electricity that is generated on a building and consumed on site or supplied to end consumers in that building without using the general supply grid. The implementation of such concepts entails various obligations, such as the fulfilment of energy supplier obligations. As a result, this option hasn’t been used much so far. The BMWK would like to encourage its use by, among other things, reducing bureaucracy and further developing the concept, as well as offering the possibility of financial tenant participation.
• Facilitation of balcony power plants: In the future, the use of so-called plug-in solar devices (small PV systems up to a maximum of 600 watts inverter power) is to be increased. For this purpose, the PV strategy discusses a simplification or deletion of reporting obligations as well as the inclusion of plug-in solar devices in the catalogue of privileged measures according to the German Condominium Act (Wohnungseigentumsgesetz) and the German Civil Code (Bürgerliches Gesetzbuch). In addition, the current threshold for simplified registration of generation systems is to be increased from 600 volt-ampere (VA) (equivalent to 600 watts) to 800 VA AC output.
• Acceleration of grid connections: The measures already begun in the German “Easter Package” to accelerate the implementation of grid connections are to be further advanced. To this end, the BMWK is planning, among other things, to introduce an obligation to tolerate the laying and operation of connection lines for renewable energy plants in return for compensation, as is also customary in the expansion of the electricity grid or broadband. Furthermore, the certification of plants in the 135-to-950-kilowatt (kW) range is to be accelerated or simplified. This is also to be achieved through the central database for unit certificates, which is currently being set up.
• Ensuring effective interlocking of energy and tax law: Various tax regulations are currently obstructing the expansion of renewable energies. In order to remove these obstacles, the BMWK plans, among other things, to abolish the obligation to file an annual VAT return for small PV companies and to prevent rental income from being impacted by trade tax due to the supply of electricity. Furthermore, the unequal treatment in the electricity tax system bracketing is to be resolved. Plant operators without taxable electricity volumes are to be exempted from registration, notification and reporting obligations.
• Securing supply chains and stimulating competitive European production: In order to avoid bottlenecks in the availability of energy transition technologies and components, such as PV modules, the BMWK is striving to establish in Germany and Europe greater production of PV modules, inverters and other components as well as the corresponding intellectual property. The necessary measures are to be developed in dialog with stakeholders, supported by the German Energy Agency (dena). In addition, a strategic action plan with concrete requirements for the production, trade and use of transformation technologies is to be developed with the European Platform for Transformation Technologies. 

The PV strategy also provides for measures to maintain and strengthen public acceptance of PV systems, to secure skilled workers and to continue and further develop research funding. 

Target visions of the BMWK 

Overall, the BMWK is pursuing a vision for 2035 where PV and solar thermal systems in buildings will be the new standard or directly integrated into building components. Every new or fundamentally renovated building is to be equipped with solar systems. The PV electricity generated is to be used across sectors. For PV electricity that cannot be used immediately after being generated, short-term storage is envisaged, for example via smart integration of electromobility or the use of heat storage available via heat pumps and power-to-heat processes in households as well as district heating and industry. As possibilities for long-term storage, the BMWK envisions the use of hydrogen electrolysis, storage and power plants. 

PV systems are expected to contribute to grid and system stability and provide basic grid functions. According to the BMWK’s vision, PV systems will be integrated in the future via standardized, digitized, and short-term grid connection procedures.

What’s next? 

The BMWK accepted comments on the PV strategy until March 24, 2023. It will now revise and finalize the PV strategy, taking into account the public consultation. The finalized version should be presented at a second PV Summit in May 2023. Based on the finalized version, two legislative packages (Solar Package I and II) will then be implemented.