PVTIME – The Federal Association of the Solar Industry has warned that Germany’s solar sector could face widespread job losses if the government ends subsidies for new private solar systems.
In an interview with the Münchner Merkur, Peter Knuth, the association’s president, said that bankruptcies and layoffs are already increasing in the industry and would escalate further if subsidy policies became tighter. He explained that discussions about subsidy cuts have caused many consumers to delay solar projects by up to a year, draining market momentum from the sector. Mr Knuth emphasised that the industry has invested heavily in talent and effort to drive the energy transition, but now risks losing skilled workers who would be hard to recruit again once they leave.
New analysis from the Institute for Employment Research shows that Germany will need to hire an additional 160,000 workers by 2030 in order to expand its renewable energy sources, such as wind and solar power. However, labour shortages in the energy transition sector are already worsening, and changes to subsidy policies are set to exacerbate this problem.
Federal Economy Minister Katharina Reich (CDU) has again questioned subsidies for new small-scale solar systems in the Augsburger Allgemeine, suggesting the removal of the EEG feed-in tariff. She argued that private solar systems are now commercially viable due to significant drops in system and storage costs, meaning they no longer require subsidies. However, she added that existing systems should retain their guaranteed subsidies until the end of their maximum remaining lifespan of 20 years. Ms Reich also proposed that future operators of solar and wind farms should take on a greater share of grid expansion costs, in order to reduce pressure on the grid and ensure a fairer distribution of financial burdens.
According to industry insiders, adjustments to subsidy policies will have a significant impact on Germany’s solar sector. On the one hand, ending subsidies could push more small solar businesses to the brink of collapse, resulting in more bankruptcies and layoffs. However, policy changes may also accelerate industry reform, prompting companies to improve their technical and operational efficiency and explore new business models. Nevertheless, achieving a balance between policy adjustments and stable sector growth remains a key challenge for the German government during this critical stage of the energy transition.
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