Photovoltaics pays off

Photovoltaic systems supply climate-friendly electricity and make us less dependent on rising energy costs. Now they are also becoming economically more attractive again. Anyone who installs a solar power system on their roof will receive a higher feed-in tariff in future.

This change was approved by the Bundestag at the beginning of July 2022. Profits of 6% per year are possible even with careful calculations. The Solar Cluster Baden-Württemberg points this out. The higher the proportion of self-consumed electricity, the higher the total profit. Another new feature is that pure full feed-in systems receive even higher remuneration. System owners will also be pleased with the reduction of bureaucratic regulations in the Renewable Energy Sources Act (EEG), in particular tax simplifications. Franz Pöter, Managing Director of the Solar Cluster, advises people to purchase a photovoltaic system as soon as possible. It should also be as large as possible. However, interested parties should be prepared for longer delivery times. It is not worth waiting, the situation will continue for a few more years.

Some of the electricity from the roof is used by the company itself, for example for lighting, electrical appliances and the electric car. This reduces your own greenhouse gas footprint, lowers your electricity bill and relieves the strain on the electricity grids. The system owners feed the part of the electricity that they cannot consume themselves into the public grid in return for remuneration, thereby making an additional contribution to climate protection.

Feed-in and self-consumption more attractive

Both feed-in and self-consumption have become more profitable. Keyword feed-in: photovoltaic systems receive the same remuneration for every kilowatt hour (kWh) of solar power fed into the grid for 20 years. The remuneration rate for rooftop systems with an installed capacity of less than ten kW has now risen from 6.24 cents to 8.2 cents per kWh of solar power fed into the grid. That is an increase of 31 %. Larger systems with an installed capacity of up to 40 kW now receive 7.1 cents instead of 6.06 cents per kWh for the part of the system above 10 kW. This increases the system's income.

Another positive aspect for future system owners is that the monthly reduction in remuneration for new systems, known as degression, has been suspended until 2024 and will then only take place every six months at a rate of 1%. "This takes account of supply bottlenecks and a shortage of tradespeople," explains Pöter. "It currently takes more than half a year from order to delivery. Homeowners can now plan on the fact that the remuneration will still be the same when the system is delivered."

In addition to the feed-in tariff, there is further income in the form of lower electricity costs. Depending on the size of the system, the solar power from the roof can cover 25% of the household's electricity requirements without any additional measures such as time control for electrical appliances. And this self-consumption is extremely lucrative. If you use some of the cheap solar power yourself, you save on buying expensive electricity from the grid. The cost saving has risen from around 16 cents net per kWh last year to around 19 cents.

System costs have risen, as has the price of electricity

The reasons: Although the systems have become more expensive in recent months, the return on self-consumption has also increased due to the rise in electricity costs. Small photovoltaic systems with an installed capacity of ten KW currently cost an average of around 1,400 euros net per KW. One kWh of solar power therefore costs around twelve cents, while a kWh from the electricity supplier costs around 31 cents net. At the beginning of last year, the figures were still 10 cents for generation costs and 26 cents for the electricity price. Solar power from the roof is now increasingly profitable. Self-consumption is the yield driver for a photovoltaic system. If electricity prices continue to rise in the future, self-consumption will also become increasingly lucrative.

Owners should therefore use as much solar power as possible themselves. One example is electronic appliances with a timer, such as washing machines or dishwashers that run at lunchtime. Electric cars charged during the day can increase self-consumption even more. Stationary solar power storage units in the home also increase the proportion of self-used solar power by storing it at midday and using it in the evening. Together with electric cars, they increase the proportion of own solar power in electricity consumption to up to 60 %. This reduces dependence on rising electricity prices. Roof surfaces facing east and west are also good. If both are covered with photovoltaic modules, this results in a larger roof area being used, i.e. more solar power in total and a yield that is extended into the morning and evening hours to cover more of the house's electricity requirements.

Equipped for the future with larger systems

You should bear this in mind: The more kilowatts you put on the roof, the cheaper the purchase per kW of installed power. Systems with well over 10 kW of installed capacity are available for as little as 1,200 euros per kW. Solar power costs therefore fall to around 10 or 11 cents per kWh. "If you have a suitable roof, you should therefore opt for a larger system. It is somewhat less profitable, as the improved feed-in tariff does not quite cover the costs," says Pöter. "However, homeowners should think about the future and consider that they will increasingly use heat pumps and electric cars in the future. This in turn increases the extremely profitable self-use of solar power and covers a larger proportion of the electricity demand in the home. This is also the most cost-effective way to make yourself independent of electricity price increases." It is therefore important to utilize the capacity of the roof for the solar modules, which only account for 40 % of the costs of a solar system.

Further innovation: full feed-in better promoted, system mix possible

Those who decide to feed in all of their electricity will receive particularly good support - but will not save a cent on their electricity bill. In future, there will therefore be two operator models, each with a different remuneration rate for full feed-in and partial self-consumption. Full feed-in is particularly worthwhile if you only have a very low electricity consumption and can therefore only use a small proportion of the electricity generated yourself, as well as for large systems. This model should therefore also lead to larger systems and better roof utilization.

In the case of full feed-in, the remuneration for systems with an installed capacity of less than 10 kW increases from 6.24 cents per kWh fed into the grid to 13.0 cents - an increase of around twice as much. For systems up to 40 kW, it is still 10.9 cents per kWh for the part of the system above 10 kW. Even without the lucrative self-consumption, full feed-in is profitable, as the generation costs are only 10 to 12 cents per kWh.

The new flexi model is also interesting: system owners can decide before each calendar year whether they want to feed in the full amount or use part of it themselves. If, for example, electricity consumption increases with a heat pump after an energy-efficient home renovation or the owners purchase an electric car, it is worth switching from full feed-in to partial feed-in before the end of the year. This enables profitable self-consumption of solar power.

The new version also allows two types of system to be registered on one house, one for partial self-consumption and one for full feed-in. For example, owners can register a 5 kW system for self-consumption and partial feed-in and also a 10 kW full feed-in system, which can later be converted into a self-consumption system. However, this requires a separate metering device for both systems, which makes the whole thing somewhat more expensive.

Tax simplification

Last but not least, bureaucratic obstacles that have prevented many homeowners from purchasing a photovoltaic system to date are also to be reduced: For example, in future, owners of systems with an installed capacity of up to 30 kW should also be able to decide for themselves whether or not to declare the income from solar power production in their income tax return. However, it is still unclear when the regulation planned for the next amendment will come into force. Until now, the limit has been 10 kW. If you apply for tax exemption, the tax office assumes that there is no intention to make a profit and that solar power generation is a "hobby". The profits then do not have to be taxed. Another change is the simpler grid connection: for systems with an installed capacity of up to 30 kW, the grid operator no longer needs to be present; electricians are sufficient.