Germany achieved a historic milestone in its energy transition in July 2026. For the first time, photovoltaic systems fed 12 billion kilowatt-hours (kWh) of solar electricity into the public grid in a single month, according to an analysis by the Internationales Wirtschaftsforum Regenerative Energien (IWR), based on quarter-hour data from the European network operators’ platform ENTSO-E.
The IWR highlighted that the actual volume of solar energy generated was even higher, as electricity consumed directly on-site does not enter the statistics of feed-in to the public grid. The record reflects the growing contribution of solar energy to Germany’s electricity mix and underscores the rapid expansion of the country’s photovoltaic capacity.
During July, the average solar power at noon exceeded 40,000 MW, equivalent to the generation capacity of more than 40 nuclear power plants of 1,000 MW each. According to the IWR, this level of generation displaced a significant portion of the electricity that would have been produced by coal and gas plants.
The organization stated that the milestone represents a structural change in the German electricity system, with photovoltaics evolving from a supplementary source to one of the central pillars of electricity supply. The growth was attributed to investments made over the past two decades by millions of property owners, farmers, commercial enterprises, and small and medium-sized businesses.
Commenting on the results, Dr. Norbert Allnoch, CEO of the IWR, said that photovoltaics has become a central component of Germany’s electricity supply, making an objective discussion on support mechanisms for renewable energies increasingly important. He noted that the term ‘solar subsidy’ can be misleading, as it suggests that every kilowatt-hour of solar electricity fed into the grid is fully financed with public money.
The IWR explained that Germany’s Renewable Energy Sources Act (EEG) operates with a differential cost model for new photovoltaic systems. In this mechanism, electricity generated by solar installations is first sold on the power exchange, with market revenues credited to the EEG account. Only the difference between the market price and the statutory feed-in tariff is compensated via the EEG account.
For example, if electricity is sold on the exchange for 5 euro cents per kWh and the statutory feed-in tariff is 7 euro cents per kWh, only the difference of 2 cents is covered by the EEG account. Conversely, if market prices rise above the tariff level, the additional revenue remains in the EEG account after the system operator receives the statutory tariff. As current feed-in tariffs for new residential photovoltaic systems are around 7 euro cents per kWh, the IWR stated that the actual differential costs of the EEG are often much lower than the tariff itself and can disappear completely when market electricity prices are sufficiently high.
The organization also highlighted that the current differential costs of the EEG are largely driven by legacy photovoltaic installations commissioned between 2010 and 2013, when investment costs were significantly higher. Many of these systems continue to receive statutory feed-in tariffs ranging from 30 to over 40 euro cents per kWh, under 20-year compensation contracts.
According to the IWR, these legacy contracts are set to expire gradually between 2030 and 2033, after which the historical differential costs of the EEG are expected to decrease significantly, regardless of the compensation paid to newly installed photovoltaic systems.
The German record reinforces the central role of solar energy in the country’s energy transition, with direct implications for the electricity market and renewable support policies. The IWR analysis, published by solarquarter.com, shows that photovoltaics has ceased to be a supporting actor and has become a key piece in the energy supply of Europe’s largest economy.