The solar energy sector has experienced a resurgence, driven by several key factors:
Declining Solar Module Costs
The cost of PV modules dropped by an astonishing 90% between 2010 and 2020, making solar power increasingly competitive with conventional energy sources. This dramatic price reduction has significantly improved the profitability of solar projects, attracting new investments.
Supportive Policy Framework and Market Incentives
The accelerated phase-out of nuclear energy and ambitious government targets for renewable energy expansion has revitalized financial interest in PV projects. Germany, for example, aims to generate at least 80% of its electricity from renewable sources by 2030, with solar power playing a pivotal role.
Rising Investment Share in Solar Energy
The share of renewable energy investments distributed to the PV sector increased from 36% in 2022 to 48% in 2024—a strong indicator of growing confidence among institutional and private investors in the economic viability of solar energy.
Successful Market Penetration
With 72.2 TWh of electricity generated from solar power in 2024, photovoltaics accounted for 14% of Germany’s total electricity consumption and is continuing to rise. This milestone highlights the growing importance of solar energy as a stable and future-proof power source. In conclusion: Solar Energy as a Future-Proof Investment
Photovoltaics is a sustainable energy source and an attractive investment opportunity. The combination of declining technology costs, rising electricity prices, and supportive government policies make the solar market a prime segment for long-term investors. Recent developments show a stabilizing and expanding market, offering excellent returns for investors who act early.
Source: Frauenhofer ISE/BMU 2024
