Photovoltaic funding for companies: How to benefit from subsidies for solar systems over 100 kWp

Solar energy is not only beneficial for private households, but also especially advantageous for businesses. The Fraunhofer Institute for SolarEnergy Systems (ISE) proved recently that electricity from solar energy can now be produced more cost efficiently¹, especially in comparison to conventional technologies such as coal or gas when combined with modern electricity storage systems.

According to the German government's plans, the expansion target for photovoltaics is still a long way off. By 2030, the target is 215 gigawatts of solar power plant capacity, where around a quarter of the expected electricity demand shall be produced by PV systems. With an installed capacity of 90 gigawatts, this figure is currently only around 12 percent.² This leaves a large gap. A significant lever: commercial roofs. The potential is huge, as only around 10 % of the available space is currently covered with solar modules.³ The government is supporting the expansion with photovoltaic subsidies for companies, which represent an important financial incentive.

For businesses interested in large-scale PV systems with more than 100 kWp, it makes sense to obtain detailed insights about the available solar subsidies. In this article, we provide an initial overview of the most important photovoltaic subsidy programs for companies at federal and state level in Germany as well as at EU level. We also show you how to find your way through the funding jungle and provide tips on what to bear in mind when researching and planning further.

The federal government's EEG account is empty. Federal Economics Minister Habeck had budgeted around 10 billion euros for the EEG surcharge in the Climate and Transformation Fund; as things stand today, around twice that amount would have been required. This clearly demonstrates the success of renewable energy, including solar power, in Germany.

At the end of June 2024, the mark of 90 gigawatts of installed capacity was exceeded for the first time, even surpassing the government's original target of 88 gigawatts for the first half of the current year. The government intends to continue on this course and is therefore offering various photovoltaic subsidy options for companies. We have compiled the most important ones for you.

The 10 billion in the budget planned for the EEG levy may have been used up and the political debate may be confusing - but the law is currently still in force and the federal government is therefore obliged to comply with its own provisions. PV systems over 100 kWp fall under the direct marketing model. Companies receive a so-called market premium for their electricity, which compensates for the difference between the market price and a fixed reference value. A check is recommended in any case. Information on the EEG and the market premium is provided by the Federal Network Agency: https://www.bundesnetzagentur.de/DE/Fachthemen/ElektrizitaetundGas/ErneuerbareEnergien/EEG_Foerderung/start.html

The Kreditanstalt für Wiederaufbau (KfW) offers low-interest loans for photovoltaic systems via the “Renewable Energies - Standard” program (KfW 270). This program promotes both the PV system itself, and the storage of the electricity generated (battery storage). Companies benefit from favorable interest rates and flexible terms. There is no limit to the size of the system, which is particularly advantageous for large-scale PV systems from 100 kWp. KfW provides information on its website: https://www.kfw.de/inlandsfoerderung/Unternehmen/Energie-Umwelt/Förderprodukte/Erneuerbare-Energien-Standard-(270)/

The Federal Office of Economics and Export Control offers subsidies and loans as part of the Federal Subsidy for Efficient Buildings (BEG), especially if the photovoltaic system is part of an energy-efficient new building or renovation. The aim of the funding is to increase the use of renewable energies in building technology. PV systems that contribute to the energy supply of a building can be subsidized under this scheme. Further information can be found here: https://www.bafa.de/DE/Energie/Effiziente_Gebaeude/Foerderprogramm_im_Ueberblick/foerderprogramm_im_ueberblick_node.html

The BMWK subsidizes innovative PV projects and storage solutions as part of climate protection programs. These include federal funding for energy consulting for non-residential buildings, facilities and systems (EBN), the SME initiative for energy transition and climate protection (http://www.mittelstand-energiewende.de) and the “Federal funding for energy efficiency in industry” program. The Ministry has compiled further information on its website: https://www.bmwk.de/Redaktion/DE/Artikel/Energie/energieberatung-und-foerderung-unternehmen.html

For larger PV projects, it is possible to participate in the tenders of the Federal Network Agency provided for in the EEG. Here, a market premium is awarded via a competitive bidding process. These tenders are particularly interesting for large-scale PV systems for companies, as operators can be awarded market premiums via the competitive process. More information can be found here: https://www.bundesnetzagentur.de/DE/Fachthemen/ElektrizitaetundGas/Ausschreibungen/Innovation/start.html

Now that subsidy programs have expired in some federal states, only two federal states, Brandenburg and North Rhine-Westphalia, still offer photovoltaic subsidies for companies with an output of over 100 kWp. However, it is worth keeping an eye on developments and looking out for new programs.

The “Brandenburg Energy Efficiency” funding program is primarily aimed at small and medium-sized enterprises (SMEs) and is based on the RENplus Directive 2014-2020. It is intended to support “investment measures to optimize the energy efficiency of industrial and commercial facilities”. The funding pot contains around 25 million euros and is explicitly open to all technologies. https://mwae.brandenburg.de/de/neues-förderprogramm-energieeffizienz-brandenburg-am-start/brandenburg_06.c.842390.de

In North Rhine-Westphalia, there is the “progres.nrw” funding program. Large photovoltaic systems are addressed via the “progres.nrw - Innovation” area. Information can be obtained from the Arnsberg district government: https://www.bra.nrw.de/energie-bergbau/foerderprogramme-fuer-klimaschutz-und-energiewende/foerderbereiche

In addition to national programs, there are also interesting funding opportunities at EU level for companies wishing to invest in photovoltaic systems.

InvestEU is the successor program to the “European Fund for Strategic Investments” (EFSI) and part of the European Green Deal. The aim is to mobilize private investments in sustainable projects. Especially for large PV projects that require significant investment volumes, this program can be a valuable complement to national funding. The website of the European Investment Bank provides further information: https://www.eib.org/de/products/mandates-partnerships/investeu/index.htm

The LIFE program is an EU funding instrument that supports projects that contribute to the implementation of environmental and climate policy. It offers financial support for pilot projects and innovative solutions in the field of renewable energies. Companies that want to implement particularly innovative or sustainable photovoltaic projects could benefit from this program. The focus here is not only on electricity generation, but also on aspects such as the ecological integration of PV systems or the promotion of biodiversity in solar fields. Information is available here: https://www.z-u-g.org/strategische-aufgaben/beratung-zum-eu-life-programm/life-programm-2021-2027/

Horizon Europe is the EU's current framework program for research and innovation. It offers companies and research institutions the opportunity to receive funding for innovative projects in the field of renewable energies. For companies that want to invest in large-scale PV systems, this program can be interesting if they want to develop or test innovative approaches at the same time. This could, for example, involve the integration of photovoltaics into existing industrial processes or the development of new storage technologies. The Federal Ministry of Education and Research has set up a website for this purpose: https://www.horizont-europa.de/de/Themen-1717.html

The field of photovoltaics is dynamic and always on the move. There are numerous funding programs for solar, which can often be combined with other measures, for example in the area of business or innovation subsidies. It is therefore advisable to stay on the case and keep an eye out for new opportunities to obtain state subsidies for the installation of larger photovoltaic systems. Comprehensive information can be found in the federal government's funding database, which provides detailed information on funding programs, funding organizations, and contains the programs of the federal states and the EU.

As each project must be considered individually and the topic is just as complex as the funding landscape, professional advice can also be worthwhile. The German government subsidizes the costs of such qualified energy advice for non-residential buildings, installations and systems. Applications can be submitted at www.energiewechsel.de.

When preparing and planning, it is also important to bear in mind that solar subsidies can often be combined with each other. This offers companies considerable advantages, especially for larger projects.

¹ https://www.ise.fraunhofer.de/de/presse-und-medien/presseinformationen/2024/photovoltaik-mit-batteriespeicher-guenstiger-als-konventionelle-kraftwerke.html

² https://www.pv-magazine.de/2024/07/19/bundesnetzagentur-220-000-neue-photovoltaik-balkonanlagen-im-ersten-halbjahr/

³ https://www.solarwirtschaft.de/datawall/uploads/2023/07/230704_Ausschreibung-Gebaeude-und-Laermschutzwaende-1.pdf