Germany
January 28, 2025

Solar Package I: Germany starts the year with a record solar auction of 2,625 MW

The German Federal Network Agency has announced a solar auction with a volume of 2,625 MW and a maximum value of 6.80 ct/kWh, marking the start of 2025. However, the full implementation of the "Solar Package I" still depends on the approval of state aid by the European Commission.
By Lucia Colaluce

By Lucia Colaluce

January 28, 2025

The German Federal Network Agency has revealed the details of its first solar auction for 2025, setting a record volume of 2,625.069 kilowatts with a maximum value of 6.80 cents per kilowatt-hour. This process is part of the legislative reform known as the “Solar Package I”, designed to accelerate the country’s energy transition.

The deadline for submitting bids is extended until midnight on 3 March 2025 at the Federal Network Agency headquarters in Bonn. This adjustment is due to 1 March falling on a Saturday.

The Importance of Solar Package I

The Solar Package I introduces significant changes to the Renewable Energy Act (EEG 2023) to promote the expansion of photovoltaic energy. Its key modifications include:

  1. Increasing the maximum bid size to 50 MW, compared to the current 20 MW.
  2. Higher maximum values for special solar systems, such as agri-PV and moor-PV installations.
  3. Specific allocation procedures for installations on agricultural land and disadvantaged areas.

However, these changes will not take effect immediately, as they require the approval of state aid by the European Commission. In its announcement, the Federal Network Agency clarified that auctions will follow existing regulations until this approval is granted.

“The current regulatory framework will remain in effect until the European Commission grants the necessary authorisation for the changes in the Solar Package I,” the official statement highlights.

Results of Previous Auctions

Germany has demonstrated a strong commitment to solar expansion. In 2024, auctions awarded approximately 8,000 MW of photovoltaic capacity, according to data from the Federal Network Agency. This marks significant progress toward the goal of achieving 215 GW of installed solar capacity by 2030.

In 2023, the total awarded volume reached 9,500 MW, distributed across three auction rounds, with an average awarded value of 6.30 ct/kWh. These figures highlight the sustained growth of solar energy in the country, solidifying Germany’s leadership in the global energy transition.

Progress in Solar Capacity: 16 GW Added in 2024

Germany reported substantial progress in installed solar capacity in 2024, adding a total of 16,179 MW during the year, according to data from the Federal Network Agency. This growth brings the country’s operational solar capacity to 99.2 GW as of December 2024.

Bavaria led the additions with 3,943 MW, followed by North Rhine-Westphalia (2,130 MW) and Baden-Württemberg (2,126 MW). In December alone, Germany installed 1.44 GW, of which 255.4 MW received no subsidies, while 590.8 MW corresponded to ground-mounted solar parks and 597 MW to rooftop systems with state support.

In terms of auctions, the Federal Network Agency awarded contracts for 6,526 MW of ground-mounted solar parks and 779.4 MW of rooftop installations in 2024.

Monthly Solar Capacities in 2024

Month
Solar Energy (MW)
January 1,594
February 1,234
March 1,389
April 1,315
May 1,201
June 1,428
July 1,618
August 1,007
September 1,220
October 1,649
November 1,084
December 1,438
Total 16,179

Context and Challenges for 2025

The total auction volume for 2025 amounts to 9,900 MW, distributed across three rounds. This increase aims to sustain the momentum of previous years and achieve the projected 215 GW of installed capacity by 2030. However, the regulatory changes proposed by Solar Package I, such as higher maximum values and special procedures for agricultural land, face delays while awaiting approval from the European Commission.

“Full implementation of the Solar Package I is crucial for achieving Germany’s energy transition goals,” the official statement emphasises.

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