Rising energy prices and the desire for more sustainability are bringing photovoltaic and green energy projects into focus. Discover how you can leverage this development for your properties and which investment strategies truly succeed.
Chat with ImmoGPT for free now.
With access to Google, BORIS, and Deep Research.
The topic briefly and concisely
Photovoltaic investments offer returns of 5-11% and are supported by government grants and tax advantages.
A high self-consumption of solar power is crucial for the economic viability of a PV system.
The political objectives in Germany and the EU are heavily promoting the expansion of renewable energies, but they require a precise understanding of the legal frameworks such as the EEG and the EU Renewable Energy Directive.
The energy transition is in full swing and offers enormous opportunities, particularly in the real estate sector. Investments in photovoltaic systems and other green energy projects not only contribute to climate protection but can also significantly enhance the profitability of your properties and reduce costs in the long term. This article sheds light on the current framework conditions, funding opportunities, and strategic considerations for successful investment projects in the field of photovoltaics and green energy. We show you how to set the course for a sustainable and profitable future.
Current market developments and political objectives for photovoltaics in Germany
The German photovoltaic market is booming. By the end of 2024, a total installed capacity of 99 gigawatts (GW) was reached, an increase of 15.9 GW within one year. The federal government plans to increase the installed PV capacity to 215 GW by 2030. To achieve this ambitious goal, an annual expansion of about 19 GW is necessary. Already in 2024, 14.5% of the electricity consumed in Germany came from photovoltaic systems, which is equivalent to approximately 72.2 terawatt hours (TWh). This trend highlights the growing importance of solar parks and renewable energies for energy supply. The political framework, such as the Renewable Energy Sources Act (EEG), provides incentives for investments. The foundation for further growth is thus laid.
Economic Viability of Photovoltaic Investments: Returns and Costs
Investing in a photovoltaic system can be financially rewarding. Typical returns for PV systems installed in 2024 range from 5 to 8 percent without storage, and can reach up to 11 percent with storage. The cost of a solar system for a detached house with an output of ten kWp will be between 12,000 and 18,000 euros in 2025. This corresponds to a price of 1,200 to 1,800 euros per kWp. A high proportion of self-consumption is crucial for profitability. With a commercial electricity price of, for example, 0.265 €/kWh and a feed-in tariff of 0.09 €/kWh (as of 2024), maximizing self-consumption optimizes returns. For a well-informed decision, an accurate evaluation using investor tools is essential. The payback period of a system is often between 7 and 10 years with optimal design.
Funding opportunities and regulatory frameworks for green energy projects
There are various subsidies for photovoltaic systems. The feed-in tariff, regulated under the EEG, guarantees a fixed payment for fed-in electricity over 20 years. For systems starting operation in 2025, this is less than eight cents per kWh for partial feed-in and around 12.5 cents per kWh for full feed-in for small systems. The KfW Bank offers low-interest loans with Programme 270 for procurement. In addition, there are regional subsidy programmes from federal states and municipalities. Since 2023, VAT on PV procurements has been abolished, further reducing investment costs. Inform yourself early about green subsidies as conditions can change. The Solar Package I, in effect since April 2024, also facilitates registration and grid connection. The 2025 EEG amendment is expected to bring further adjustments to subsidies and self-consumption.
Key subsidy instruments include:
Feed-in tariff under EEG (varies according to system size and start of operation)
KfW loans (e.g. Programme 270 "Renewable Energies – Standard")
Regional grants from federal states and municipalities (e.g. Solar Plus Programme in Berlin)
Tax advantages (e.g. exemption from VAT, income tax exemption for systems up to 30 kWp)
These subsidies make investment strategies in green energy more attractive.
Planning and implementation of photovoltaic investment projects
Careful planning is key to the success of your photovoltaic project. First, your own electricity needs must be analysed, and a realistic self-consumption rate must be determined. The size of the system should be matched to this need and the available, effectively usable roof space. Technical aspects such as shading and grid connection capacity must be clarified early on. For commercial projects, compliance with EEG requirements regarding system size, self-consumption structure, and metering technology is crucial for access to funding. Over 20% of commercial systems had to be adjusted retrospectively in 2023, leading to funding delays. Obtain quotes from multiple installers and assess the profitability using a detailed Auctoa evaluation for property investors. The choice of the right investment model (self-construction, PPA, leasing the roof) depends on your risk tolerance and capital.
Important steps in planning include:
Needs analysis and determination of the optimal system size (on average, 1 kWp capacity generates approximately 1,000 kWh/year in Germany).
Examination of site conditions (roof orientation, inclination, shading).
Obtaining and comparing offers from qualified installers.
Clarification of financing and application for funding.
Registration of the system with the grid operator and in the market master data register.
Professional financing advice from Auctoa can support you in this.
Green energy projects beyond photovoltaics: Other sustainable options
Besides photovoltaics, there are other sustainable options for your property. Solar thermal systems harness solar energy to produce heat for heating and hot water. Heat pumps, ideally powered by solar electricity, are an efficient heating alternative. The integration of charging stations for electric cars, supplied by your own PV system, is also gaining importance. For larger properties, small wind turbines can also be an option. The combination of different technologies can increase the degree of self-sufficiency and economic efficiency. The EU Directive on renewable energies (RED) aims to increase the share of renewable energies to 45% by 2030, which promotes the expansion of various technologies. Also consider energy efficiency measures to reduce overall energy demand. Buying a house with climate protection aspects in mind is becoming increasingly important.
The role of battery storage for optimised self-consumption and grid stability
Batteries storage systems are a crucial component for the profitability of photovoltaic systems and the stability of power grids. They enable surplus solar power to be stored during the day and used in the evening or as needed, significantly increasing self-consumption rates. Systems with storage can achieve returns of up to 11 per cent. The cost of storage should ideally not exceed 600 euros per kWh of storage capacity. Modern energy management systems optimise the interaction between generation, storage, and consumption. The demand for battery storage systems is continually rising; in 2024, the installed solar storage capacity increased by nearly 50 per cent. The EEG 2025 might further adjust the support for battery storage systems, especially regarding the interim storage of grid electricity. An impartial evaluation, such as that offered by Auctoa, assists in the dimensioning and selection of the appropriate storage system.
photovoltaik-green-energy-investment-projects
Investors in green energy projects must be familiar with the relevant EU directives and national laws. The EU Renewable Energy Directive (RED III) raises the European target for renewable energy to 45% by 2030. This supports Germany's national expansion targets. The German Renewable Energy Act (EEG) forms the basis for the expansion of renewable energies, particularly in the electricity sector, and was last extensively amended in 2023. The EEG 2023 sets an expansion target of at least 80 percent renewable energy in gross electricity consumption by 2030. For the heat sector, the Building Energy Act (GEG) is central, which was most recently amended on January 1, 2024. The EU Taxonomy Regulation defines criteria for sustainable investments and is intended to guide investments towards ecological transformation. It is crucial to ensure project eligibility and compliance in order to benefit from programmes such as the Green Grants Database. The complexity of these regulations often requires expert advice.
Future Trends and Challenges in Green Energy Investment
Is a photovoltaic system worth it without high self-consumption?
High self-consumption significantly increases profitability, as the savings from self-used electricity (often >30 ct/kWh) are higher than the feed-in tariff (e.g., <8 ct/kWh for partial feed-in in 2025). A detailed calculation is advisable.
How long does it take for a PV system to pay for itself?
The payback period depends on many factors (purchase costs, electricity price, self-consumption, subsidies), but it is often between 7 and 10 years with good planning.
What role does the EU play in my photovoltaic investment?
The EU sets ambitious targets for renewable energies (e.g., 45% share by 2030 under RED III) and issues guidelines (e.g., EU taxonomy) that influence national laws like the EEG and steer investments.
Do I need to register my PV system with the network operator?
Yes, new photovoltaic systems must be registered with the relevant network operator and in the Market Master Data Register of the Federal Network Agency. The Solar Package I has simplified the procedures.
What is the difference between kWp and kWh in photovoltaics?
kWp (Kilowatt-Peak) is the unit of measure for the peak output of a PV system under standard test conditions. kWh (Kilowatt-hour) is the unit of measure for the actual amount of electricity generated or consumed. 1 kWp output generates approximately 1,000 kWh of electricity per year in Germany.
Are battery storage systems worthwhile for every PV system?
Battery storage systems increase self-consumption and independence, but they are an additional investment (approx. €600/kWh capacity). Whether they are worthwhile depends on the individual consumption profile and electricity costs. An analysis by Auctoa can provide clarity here.
Additional useful links
The Federal Statistical Office (Destatis) offers press releases with relevant statistics on the market development of photovoltaics.
The Federal Environment Agency provides comprehensive information on photovoltaics, including environmental aspects and renewable energies.
The Federal Network Agency provides detailed statistics on renewable energies, including data on photovoltaics.
The Fraunhofer ISE offers in-depth analyses and data on the PV market in its Photovoltaic Report.
The Federal Government provides information on the amendment of the Renewable Energy Sources Act (EEG) of 2023.
Under Laws on the Internet you will find the Renewable Energy Sources Act (EEG) 2014, which forms the legal framework for renewable energies in Germany.
The KfW provides information on funding programmes for photovoltaic systems.
The German Energy Agency (dena) informs about support in implementing the photovoltaic strategy.
The German Solar Industry Association (BSW) provides current market data on photovoltaics.
FAQ
Is a photovoltaic system worthwhile even without high self-consumption?
A high level of self-consumption significantly increases profitability, as the savings from self-used electricity (often >30 ct/kWh) are higher than the feed-in tariff (e.g., <8 ct/kWh for partial feed-in 2025). A detailed calculation is advisable.
How long does it take for a PV system to pay for itself?
The payback period depends on many factors (purchase costs, electricity price, self-consumption, subsidies), but with good planning, it often ranges between 7 and 10 years.
What role does the EU play in my photovoltaic investment?
The EU sets ambitious targets for renewable energies (e.g., 45% share by 2030 through RED III) and issues directives (e.g., EU taxonomy) that influence national laws like the EEG and guide investments.
Do I need to register my PV system with the grid operator?
Yes, new photovoltaic systems must be registered with the responsible network operator and in the market master data register of the Federal Network Agency. The Solar Package I has simplified the procedures.
What is the difference between kWp and kWh in photovoltaics?
kWp (Kilowatt-Peak) is the unit of measurement for the peak power of a PV system under standard test conditions. kWh (Kilowatt-hour) is the unit of measurement for the actual amount of electricity generated or consumed. In Germany, 1 kWp of capacity generates approximately 1,000 kWh of electricity per year on average.
Are battery storage systems sensible for every PV installation?
Battery storage increases self-consumption and independence, but it is an additional investment (approx. €600/kWh capacity). Whether they are worthwhile depends on the individual consumption profile and electricity costs. An analysis by Auctoa can provide clarity here.
