Germany recorded a historic milestone in its renewable energy transition in July 2026, with photovoltaic (PV) systems feeding 12 billion kilowatt-hours (kWh) of solar electricity into the public power grid for the first time in a single month, according to an analysis by the Internationales Wirtschaftsforum Regenerative Energien (IWR) based on quarter-hourly data from the European grid operator platform ENTSO-E.
The IWR noted that the actual volume of solar power generated was even higher, as electricity consumed directly on-site is not included in public grid feed-in statistics. The record reflects the growing contribution of solar energy to Germany’s electricity mix and highlights the rapid expansion of the country’s photovoltaic capacity.
During July, average midday solar power output exceeded 40,000 MW, equivalent to the generating capacity of more than 40 nuclear power plants rated at 1,000 MW each. According to the IWR, this level of generation displaced a significant share of electricity that would otherwise have been produced by coal- and gas-fired power plants.
The organization said the milestone represents a structural shift in Germany’s power system, with photovoltaics evolving from a supplementary energy source into one of the country’s key pillars of electricity supply. It attributed this growth to investments made over the past two decades by millions of homeowners, farmers, commercial enterprises, and small and medium-sized businesses.
Commenting on the findings, Dr. Norbert Allnoch, CEO of the IWR, said photovoltaics has become a central component of Germany’s electricity supply, making an objective discussion of the country’s renewable energy support mechanisms increasingly important. He noted that the term “solar subsidy” can be misleading, as it implies that every kilowatt-hour of solar electricity fed into the grid is fully funded by public money.
The IWR explained that Germany’s Renewable Energy Sources Act (EEG) operates on a differential cost model for new photovoltaic systems. Under the mechanism, electricity generated by solar installations is first sold on the power exchange, with the resulting market revenues credited to the EEG account. Only the difference between the market price and the statutory feed-in tariff is compensated through the EEG account.
For example, if electricity sells on the exchange for 5 euro cents per kWh while the statutory feed-in tariff is 7 euro cents per kWh, only the 2-cent difference is covered through 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 said actual EEG differential costs are often substantially lower than the tariff itself and may disappear entirely when electricity market prices are sufficiently high.
The organization also highlighted that today’s EEG differential costs 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 more than 40 euro cents per kWh under 20-year compensation contracts.
According to the IWR, these legacy contracts are scheduled to expire gradually between 2030 and 2033, after which historical EEG differential costs are expected to decline significantly, irrespective of compensation paid to newly installed photovoltaic systems.
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