Going green is the best way forward, according to many European leaders. As expected, Germany is the leader in this issue.
Analysts estimate that installing solar panels on the roof of German metal products manufacturer Tridelta can significantly cut electricity costs and carbon emissions. The project is estimated to cost 2.3 million euros ($2.5 million). After evaluating the investment’s effectiveness, the management quickly decided to proceed. The factory installed photovoltaic modules capable of supplying electricity to around 900 households, in addition to the plant itself. According to the owner of Tridelta, these systems will pay for themselves in 7 and a half years, and they come with a 20-year warranty. This could be considered an extremely profitable investment.
After the sharp reduction in fossil fuel exports from Russia to Germany, German authorities passed laws to accelerate the development of solar energy. These laws are part of a plan to ensure 80% of Germany's energy comes from renewable sources by 2030.
German companies are increasingly turning to solar energy and other renewables to avoid high electricity costs. Germany currently has the largest solar and wind energy capacity in Europe. However, small and medium-sized companies are not benefiting from lower electricity prices due to high network fees and taxes. By generating their own solar power, they avoid these extra costs.
According to the BDEW energy industry association, German companies consumed 69% of the electricity generated in the country in 2023. "As electricity prices in Germany show no signs of decreasing as previously anticipated, companies are increasingly recognizing the economic viability of installing solar panels," Marie-Theres Husken, an energy expert for the BVMW association for small- and medium-sized businesses, said.
Data from the Solar Energy Association (BSW) shows that the number of newly installed photovoltaic capacities on business rooftops increased by 81% year-on-year, outpacing the 1% growth in the residential sector.
Currently, over 50% of German companies with suitable roofs plan to install solar energy systems within the next three years. BVMW forecasts that by 2030, nearly all manufacturing firms in Germany will use solar energy.
In response to growing demand, Enpal, Germany's largest solar energy developer, announced an expansion of its commercial sector activities.
Global solar panel prices fell in 2023, encouraging many companies to switch to solar energy. Experts highlight that the market is flooded with cheap but good Chinese panels, making modern systems 20% cheaper than a year ago.
Legislation passed in Germany is expected to increase subsidies for businesses installing large solar systems on their roofs. Additionally, a tax investment reform for real estate funds using solar panels is set to take effect soon. Analysts believe these measures will further drive demand. Government subsidies for large-scale photovoltaic projects on roofs, introduced in 2021, are also bolstering this trend.
