Germany’s latest solar projects auction saw bids exceed available capacity by more than double, which showed strong competition and lowered subsidy costs. The average bid price dropped to 4.76 cents per kWh, thus reflecting reduced financial support needs and continued investor interest.
Growing Competition and Falling Subsidy Needs
Germany’s latest auction for solar projects attracted bids that more than doubled the available capacity, which signalled strong investor confidence in the sector. The Federal Network Agency (BNetzA) announced that a total of 4.7 gigawatts (GW) of projects were submitted, but only 2.15 GW were awarded to 242 projects. The high level of competition led to lower subsidy costs, further reinforcing the country’s renewable energy goals.
The strong demand for solar projects continues to drive down subsidy requirements. BNetzA president Klaus Müller stated that competition remains high, which is reducing the financial support required for new installations. The average bid price for the latest auction was 4.76 cents per kilowatt hour (kWh). This marks a six percent drop from the previous round’s 5.05 cents per kWh. The last time prices were this low was in 2019.
The auction — which closed on December 1, 2024 — focused on large-scale solar projects, particularly open-space installations and systems built on non-building structures. A total of 524 bids were submitted, which represents a combined capacity of 4.7 GW. However, only 242 bids were successful.
The awarded projects had bid prices ranging between 3.88 cents per kWh and 4.95 cents per kWh. The volume-weighted average price stood at 4.76 cents per kWh. This marks the fifth consecutive auction where the total bid volume exceeded 4 GW. This highlights the sustained interest in Germany’s solar market.
Regional Distribution of Awarded Solar Projects
Bavaria emerged as the leading region for solar projects in this auction. It secured 120 successful bids, which totalled 916 megawatts (MW) of capacity. Other regions also received substantial awards, including Schleswig-Holstein with 213 MW from 21 projects, Lower Saxony with 192 MW from 18 projects, Baden-Württemberg with 176 MW from 20 projects, and Brandenburg with 170 MW from 13 projects.
These results underline Bavaria’s position as a major hub for solar energy development in Germany. However, the participation of other states shows that solar expansion is gaining momentum across the country. The decentralisation of solar projects helps ensure a more balanced distribution of renewable energy production.
Germany is implementing policy changes to further accelerate the expansion of solar projects. The recently introduced Solar Package I increases the maximum capacity for open-space systems to 50 MW and provides privileges for certain solar projects. However, these regulations were not applied in the latest auction, as they are still awaiting approval under state aid rules.
For the first time, the latest auction incorporated minimum environmental criteria for solar projects. These new requirements aim to improve the ecological compatibility of solar farms. They ensure that renewable energy expansion does not come at the cost of biodiversity or landscape integrity. The integration of these standards reflects Germany’s commitment to balancing clean energy growth with environmental protection.
Future Auctions and Market Outlook
Germany’s next solar projects auction is scheduled for March 1, 2025. The continued high level of competition suggests that demand for solar investments will remain strong. The government’s long-term commitment to expanding solar capacity is expected to attract even more developers and investors to future tenders.
The sharp decline in subsidy costs indicates that solar energy is becoming increasingly competitive with traditional energy sources. As technology advances and production costs fall, Germany is likely to see even greater efficiency in future solar projects.
The latest auction results highlight the country’s leadership in renewable energy deployment. By maintaining strong policy support and encouraging private-sector investment, Germany is reinforcing its position as a global frontrunner in the transition to clean energy.
With solar projects at the heart of its strategy, Germany is well on its way to achieving its renewable energy goals. The continued expansion of solar power will play a key role in ensuring a stable, sustainable, and low-carbon energy future.