In a clear demonstration of the dynamism and competitiveness of Germany’s solar sector, the Federal Network Agency (Bundesnetzagentur) announced the award of 271 solar projects totalling 2,638 MW in capacity during the tender held on 1 March 2025. This volume slightly exceeded the original 2,625 MW limit, reaffirming the strong market appetite for photovoltaic development.
“The tender continues to be characterised by high participation, competition remains strong, and award prices continue to fall,” states Klaus Müller, President of the Bundesnetzagentur. His remarks highlight a landscape where competitive pressure is driving down prices while encouraging robust project proposals.
The round attracted 420 bids amounting to 3,839 MW, resulting in a 46% oversubscription, underlining private sector enthusiasm for expanding Germany’s solar capacity. However, 35 bids were excluded for failing to meet procedural requirements. Among the selected companies are EDP, E.ON, and EnBw.
Declining prices reflect market maturity
Awarded prices ranged between 3.99 ct/kWh and 4.88 ct/kWh, with a volume-weighted average of 4.66 ct/kWh, down from 4.76 ct/kWh in the previous round. This modest decrease continues a steady downward trend, signalling greater technological efficiency and optimised investment costs across the sector.
The maximum bid value allowed was 6.80 ct/kWh, yet actual awarded prices fell well below this ceiling, demonstrating how developers are engaging in aggressive competition to secure financial support within a highly contested market.
Regional distribution and key players
Bavaria led the awards with 607 MW across 85 projects, followed by Brandenburg with 367 MW and Lower Saxony with 315 MW. These regions benefit from favourable solar conditions, available land, and robust grid infrastructure to accommodate new capacity.
Among the standout winners were established industry players such as:
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Windpark Greifenhain GmbH & Co. KG
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WI Energy Verwaltungs GmbH
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SUNCATCHER Kerzlin GmbH
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ENERPARC Solar Invest 229 GmbH
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EnBW Solar GmbH
Each secured projects at the 20 MW cap per bid. Many of these installations will be located across Brandenburg, Schleswig-Holstein, Mecklenburg-Vorpommern, and Rhineland-Palatinate, supporting geographically diverse solar growth.
The Bundesnetzagentur emphasised that all awarded systems are dispatchable, capable of adjusting output to align with market electricity demand — a crucial feature for maintaining grid stability.
Regulatory framework: “Solar Package I” on hold
While the tender operated under the provisions of the EEG 2023, the implementation of the “Solar Package I”—a legislative reform aimed at accelerating photovoltaic deployment—remains pending approval by the European Commission under state aid rules.
Pending this approval, the per-offer cap remains at 20 MW, despite plans within the reform to increase it to 50 MW. Similarly, differentiated incentives for special solar systems, such as high-altitude agri-PV and moorland PV, await regulatory clearance.
Participation conditions and exclusions
Bids were accepted until midnight on 3 March 2025, with the total annual solar tender volume set at 9,900 MW, spread across three rounds as stipulated by the EEG. This first round signals a strong start to a year where Germany aims to further consolidate its leadership in Europe’s renewable energy landscape.
Offers exceeding the maximum price or failing to comply with format specifications were automatically disqualified. Additionally, projects on agricultural land surpassing national capacity thresholds were excluded.
Looking ahead: Next round in July
The next tender for first-segment solar plants is scheduled for 1 July 2025. The sector anticipates that, should the “Solar Package I” gain approval by then, regulatory changes will enable larger-scale developments, particularly in agricultural and specialised areas.
For now, the March auction confirms that Germany’s solar market remains buoyant, both in volume and competitiveness. The ongoing challenge lies in integrating this new capacity efficiently into the grid while advancing towards a carbon-neutral energy system.
