Germany has announced the results of its first solar auction of 2024, awarding a total of 2.14 GW in installed capacity, with bid values ranging from 3.88 to 4.95 euro cents per kWh. The Federal Network Agency published the official data on 10 February 2025, confirming that the process was conducted under the guidelines of Solar Package I, a key reform in the country’s renewable energy regulation.

A total of 242 projects were granted awards, with bid values remaining within the permitted range. The weighted average award price was 4.76 euro cents per kWh, equivalent to €47.60 per MWh, demonstrating price stability in solar power generation within the German market.

The total auctioned volume for this round was 2,147,784 kW, as part of an annual plan distributing 8,100 MW across three bidding rounds. Unlike previous processes, the regulator did not reduce the auctioned volume this year, aligning with the expansion targets set by the Renewable Energy Sources Act (EEG 2023).

The maximum bid price for the auction was 7.37 euro cents per kWh, but all successful bids remained well below this threshold, with a minimum bid of 3.88 euro cents per kWh and a maximum of 4.95 euro cents per kWh. This outcome reflects increasing competitiveness in the sector and a downward trend in solar generation costs.

One of the key aspects of this auction was the possibility of submitting bids for solar installations on agricultural land, supporting the coexistence of renewable energy and farming activities. However, the total installed capacity for such projects cannot exceed 80 GW nationwide. At present, this threshold remains far from being reached, with 6.2 GW recorded by 31 August 2024.

Among the top companies awarded in this auction were ZPV GmbH & Co. KG, SolarPark Northeim GmbH, UGE Laubst GmbH & Co. KG Umweltgerechte Energie, and SachsenEnergie AG. These firms secured significant project capacities, highlighting the strong role of private sector players in developing Germany’s solar infrastructure.

Impact of the Solar Package I on the Auction

The December 2024 auction introduced major modifications derived from Solar Package I, a reform aimed at accelerating the rollout of photovoltaic systems in Germany.

One of the most relevant changes involves the maximum bid volume per project, which is expected to increase from 20 MW to 50 MW, pending approval from the European Commission under state aid rules. Additionally, the higher bid price cap for special solar installations, such as high-altitude agrivoltaics and moorland PV, remains in place until formally approved by the European Commission.

Further environmental protection criteria were introduced, taking effect from this auction onwards, impacting projects located in specific geographic areas. The general award procedure remains in use, awaiting the implementation of a prioritised award mechanism for specific projects.

Comparison with previous auctions

The market behaviour in this auction follows the stabilisation trend observed in recent years. Compared to previous processes, there is a continued gradual reduction in awarded prices, reflecting greater competitiveness and ongoing reductions in solar technology costs.

In 2023, awarded prices in similar auctions ranged between 4.0 and 5.2 ct/kWh, suggesting a slight reduction in costs over the past year. However, the stability in values also indicates that the market has found a balance in terms of profitability and development costs.

Outlook for future auctions and solar market expansion

With a target of 8,100 MW awarded in 2024, Germany remains firmly committed to its solar expansion plan. The next auctions, scheduled for June and October, are expected to attract similar or greater demand, driven by falling costs and growing interest in clean energy.

One of the critical factors to monitor is the European Commission’s approval of regulatory adjustments under Solar Package I. Expanding the maximum bid volume per project to 50 MW and introducing specific incentives could attract more investors and accelerate the deployment of solar infrastructure.

Additionally, the increasing participation of projects on agricultural land and disadvantaged areas opens up new opportunities for hybrid land-use models, such as agrivoltaics, which combine energy production and agricultural activities on the same land.

List of awarded projects

Below is the full list of the awarded projects in the solar auction: