Declining Market Value for Solar Power: Challenges and Perspectives

Source: Bay­erische Lan­desanstalt für Land­wirtschaft

Risk for New Solar Installations Above 400 kWp

New solar instal­la­tions with a capac­i­ty of 400 kWp or more, oper­at­ed under the EEG 2023, face a cru­cial reg­u­la­tion: they are not enti­tled to the EEG guar­an­teed remu­ner­a­tion dur­ing hours of neg­a­tive elec­tric­i­ty prices. While feed­ing elec­tric­i­ty into the grid dur­ing these times is pos­si­ble, it occurs with­out the usu­al mar­ket pre­mi­um. In 2024, a min­i­mum of three con­sec­u­tive hours of neg­a­tive whole­sale prices is required for the loss of remu­ner­a­tion. From 2026, this will be reduced to two hours, and from 2027, it will apply to every hour with neg­a­tive whole­sale prices, pos­ing a risk of strand­ed invest­ments.

Future Strategies

These legal and reg­u­la­to­ry adjust­ments aim to increase pro­duc­ers’ flex­i­bil­i­ty, allow­ing mar­ket sig­nals to reach them direct­ly. In light of the declin­ing mar­ket val­ue, oper­a­tors should con­sid­er inno­v­a­tive busi­ness mod­els like Pow­er Pur­chase Agree­ments (PPAs) to mit­i­gate price risks and secure sta­ble income sources. Addi­tion­al­ly, com­bin­ing pho­to­volta­ic sys­tems with ener­gy stor­age or oth­er tech­nolo­gies could enhance invest­ment attrac­tive­ness. Hybrid solu­tions not only reduce the risk of strand­ed invest­ments but also offer oppor­tu­ni­ties to increase the over­all prof­itabil­i­ty of the asset port­fo­lio.

Conclusion

Despite cur­rent chal­lenges, the solar mar­ket still offers oppor­tu­ni­ties for investors will­ing to adapt to chang­ing mar­ket con­di­tions. Through cre­ative approach­es and flex­i­ble strate­gies, oper­a­tors can ben­e­fit from the ener­gy tran­si­tion and min­i­mize eco­nom­ic risks.