Solar Power Surpasses Lignite In German Energy Transition

Germany’s renewable energy sector maintained a dominant 55.9% share of net public electricity generation in 2025, according to new data from Fraunhofer ISE. In a landmark shift for the nation’s energy transition, solar power surpassed lignite to become the second-largest electricity source, trailing only wind power. Despite significant growth in solar capacity and a surge in battery storage installations, the country faces ongoing challenges in meeting onshore wind expansion targets. While fossil fuel reliance remains at historic lows, fluctuations in weather patterns and infrastructure delays continue to influence the total renewable output.

The solar sector emerged as a primary driver of Germany’s energy mix in 2025. Photovoltaic systems generated approximately 87 terawatt hours (TWh), with 71 TWh supplied to the public grid and 16.9 TWh consumed directly by producers. This represents a 21% increase in solar generation compared to the previous year. By the end of 2025, Germany’s total installed solar capacity reached 116.8 gigawatts (GW), following the addition of 16.2 GW during the year. However, experts note that annual installations must rise to 22 GW starting in 2026 to meet long-term climate objectives.

Wind power remained the leading source of electricity, contributing 132 TWh to the grid, despite a 3.2% decline in output caused by unfavorable weather conditions. Onshore wind accounted for 106 TWh, while offshore installations provided 26.1 TWh. Expansion in this sector lagged behind official goals; Germany added 4.5 GW of onshore capacity and 0.29 GW offshore, bringing the total wind capacity to 68.1 GW. This remains significantly below the government’s 76.5 GW target for the year, highlighting persistent bottlenecks in wind energy deployment.

Other renewable sources showed diverging trends. Biomass production rose to 41.1 TWh, but hydropower fell sharply to 17.8 TWh due to a 27% decrease in precipitation compared to 2024. In total, renewable sources produced 278 TWh, falling short of the 346 TWh official target. This gap is largely attributed to the slower expansion of wind power and an increase in solar self-consumption.

The battery storage market experienced rapid acceleration, supported by falling costs and fluctuating electricity prices. Large-scale battery storage capacity grew by 60% to reach 3.7 GWh, while total installed capacity across the country—including home storage—hit nearly 25 GWh. Projections suggest that Germany may require up to 170 GWh of storage by 2030 to balance the intermittency of renewable generation.

Fossil fuel generation showed signs of structural decline, with lignite-based output falling to 67.2 TWh, its lowest level since 1961. While natural gas usage increased to 52.4 TWh to compensate for fluctuations, total CO2 emission levels from the power sector remained stable at 160 million tonnes. This figure represents a 58% reduction compared to 1990 levels. In the broader market, Germany remained a net importer of electricity, with average exchange prices rising to €86.55 per MWh amid tighter supply conditions.