Germany’s solar PV installations in the first quarter of 2026 fell by 6% year-on-year, driven by a decline in residential demand, according to data released by the German Solar Association (BSW-Solar).
Based on figures from the Federal Network Agency, total solar installations reached 3.51GW in Q1 2026. The residential segment saw a 21% YoY drop to 850MW, marking the second consecutive year of slowdown in the opening quarter. Commercial rooftop solar also declined significantly, with installations totaling 600MW, a 33% YoY decrease. Even balcony solar, where Germany is a global leader, fell by 6% compared to the same period last year.
Ground-mounted solar was the only segment to record growth, accounting for over half of total Q1 installations at nearly 2GW, a 20% YoY increase. However, this growth was insufficient to offset the declines in residential and commercial segments.
BSW-Solar has warned that planned subsidy cuts could further hinder PV expansion. The draft Renewable Energy Sources Act proposes eliminating grid feed-in compensation for all newly built PV systems up to 25kW – both residential and commercial – starting from 2027. The trade body cautioned that the legislation, if passed unchanged, would slow solar PV growth and put tens of thousands of jobs at risk.
Despite the Q1 slowdown, BSW-Solar expects a slight uptick in installations in the coming weeks, attributed to the Middle East conflict and pull-forward effects from anticipated subsidy cuts. “A temporary solar boom, should it occur, is no substitute for reliable investment conditions,” said Carsten Körnig, BSW’s managing director.
In contrast to the PV slowdown, Germany’s energy storage sector had a record Q1, with 2GWh of new capacity commissioned, a 67% YoY increase. Large-scale storage systems (1MWh and above) drove this growth, with over 1GWh installed – nearly four times the figure from the previous year.
BSW-Solar called for simplified regulatory frameworks for co-located storage to unlock its full potential. The association also emphasized that batteries should be used to store electricity during periods of negative prices and grid congestion, instead of curtailing PV systems.
