Solar installations in Germany are slowing, while battery storage is breaking records

The pace of new solar power plant installations in Germany slowed at the start of 2026, while battery storage recorded record growth. This is according to an analysis of data from the regulator published by the industry association BSW Solar.

In the first quarter of 2026, new photovoltaic installations fell by around 6% year on year to approximately 3.5 GW. New installations on residential buildings declined by 21%, while commercial rooftop systems fell by 33%. By contrast, large ground-mounted solar power plants recorded a year-on-year increase of around 20% in newly installed capacity. This segment is therefore partly offsetting weaker demand for decentralized generation.

The decline in installations is primarily due to cooling interest among households and businesses, which responded to the energy crisis and high electricity prices in previous years. The market is now stabilizing, and some demand was “brought forward” in previous years.

According to BSW Solar representatives, interest could see a temporary rebound in the short term, for example in response to the current rise in electricity prices or concerns about restrictions to support programs. However, the association says this will not replace the need for stable and predictable investment conditions.

Battery storage is booming

The trend is quite the opposite for battery systems. More than 2 GWh of new capacity was added in the first three months of 2026, representing a year-on-year increase of around 67%. Germany’s total installed battery storage capacity thus reached approximately 28 GWh across more than 2.5 million systems.

Large-scale batteries are the main driver of growth, with their newly added capacity nearly quadrupling year on year. Medium-sized commercial systems are also growing significantly, while residential batteries are stagnating.

Storage plays a key role in the energy transition

The rapid development of batteries is linked to the growing share of renewables in the energy mix, which is driving greater price volatility in short-term markets. Battery storage can turn this price volatility into profit by storing electricity purchased when prices are low and selling it when prices rise.

A similar trend is evident across Europe, where battery installations have grown at a record pace in recent years, with large projects connected directly to the grid becoming increasingly prominent. The number of renewable energy projects combined with battery storage is also increasing, as so-called capture prices—particularly for solar, but also for wind power plants—decline as their numbers grow.