Prices surge in latest German rooftop solar auction, but projects remain scarce

At the beginning of February, Germany offered more than 200 MW of capacity in its first auction this year for solar power plants built on rooftops or noise barriers. Although the shortage of projects eased after maximum bid prices were raised significantly, the auction still went undersubscribed. The winning bid prices rose by almost a quarter compared with the previous round, along with the price cap.

In response to recent developments on energy markets, Germany is planning an intensive expansion of renewable energy sources to help the country reduce its dependence on imported fossil fuels. For example, the auction volume for onshore wind farms was significantly increased for this year. However, Germany still lacks projects, and the first auction this year was less than half subscribed.

The shortage of projects is a similar issue in auctions for solar power plants on rooftops and noise barriers. Unlike auctions for wind farms, however, their volume has not been increased this year. Instead, each of the three rounds this year will offer 217 MW of capacity, whereas in the first two rounds last year the German grid regulator offered almost 767 MW of capacity for bidding.