The German Federal Network Agency recently announced that 220,000 new photovoltaic balcony systems were registered in the market master data register in just the first half of the year. This raises the question: Are these plug-in solar devices impacting the market for traditional residential rooftop installations?

Impact on Traditional Rooftop Solar Installations

Malte Claußen: In my opinion, the surge in balcony solar systems is definitely affecting traditional rooftop installations. The increase in module power to 2000 watts and aggressive marketing highlighting significant annual cost savings are persuading many consumers to opt for the smaller, more affordable balcony systems. These systems require minimal installation effort, can often be set up by the consumers themselves, and do not necessitate modifications to the meter cabinet or involve the energy provider. As a wholesaler, we observe that traditional photovoltaic installers hardly cater to this market segment, resulting in a noticeable loss of business for them. While it’s difficult to estimate the exact impact, I believe it is more substantial than generally assumed.

Regulatory Compliance and Market Trends

With the introduction of “Solar Package 1,” the limit for these plug-in solar devices has been raised to 2000 watts DC and 800 watts AC. Are end customers adhering to this limit?

Until last year, we rarely sold inverters in the 2000-watt power class, mostly as replacements for defective inverters from the early days of the EEG. This has changed, indicating that the new limit is not always observed. Personal conversations with end customers have confirmed that this limit is often ignored.

Are these isolated cases?

Judging by comments on Facebook, the number of unreported cases seems high. However, I also notice that end consumers generally understand and accept the technical requirements for balcony systems after receiving proper information. Broad acceptance may require some time.

Market Challenges for German Installation Companies

The current market situation appears challenging for many installation companies. How is the demand for their services, and how is the intensified competition affecting prices?

As a wholesaler, we find it difficult to compensate for the poor order situation faced by our customers, the installers. Our sales figures are about 40% lower than last year, with approximately one-third of the decline due to lower prices (averaged across all components) and two-thirds due to fewer orders.

Can you estimate the decline in orders for installers?

Through numerous individual discussions, we’ve found that the decline in orders for installers ranges between 20% to 50%. Systems over 100 kilowatts have seen a significant drop, although they are slowly recovering. Price dumping is increasingly problematic, with companies desperately trying to keep their workforce occupied and clear out excess inventory. This applies to both solar panel installers and distributor, dealers. The pressure is further exacerbated by the internet and social media platforms like Facebook and Instagram.

How so?

Photovoltaic components are often sold at wholesale prices directly to end consumers and installers on these platforms. Additionally, complete systems are advertised with massive discounts. This price competition started last year, especially after the Intersolar event. Large retailers appear to be struggling significantly, with prices 20% to 30% below cost becoming common as they attempt to clear their oversized inventories.

Self-Installation Solar PV Trends

Returning to the trend of self-installation of photovoltaic systems, do you see this trend continuing?

Thankfully, the DIY market isn’t infinitely scalable. Only a small proportion of consumers are confident enough to install systems themselves. However, the number of end consumers contacting us to connect their internet-purchased and self-installed photovoltaic systems, often with battery storage, is rapidly increasing. Our installation customers report the same. This trend is driven by the attractive complete system prices available online. The growing number of sales platforms offering direct sales and delivery of solar modules to end consumers complicates the situation further. Moreover, Chinese manufacturers now offer mounting structures for multiple modules via Amazon, with free shipping. The easier the legislation makes it to implement photovoltaic systems, the more this trend will grow. But as I mentioned, the DIY market has its limits.

Are you aware of increased accidents during these self-installations, and what could be the consequences?

I recently attended a multi-day seminar on occupational safety by the professional association, where photovoltaic systems were highlighted as a cautionary example of accidents due to safety violations. The number of serious accidents during roof work in the photovoltaic sector has sharply increased, prompting more inspections by the association. Both installation companies and end consumers were involved, although no specific distribution details were provided. The ensuing discussion revealed that insurers are also becoming more vigilant, potentially posing a problem for end consumers who might face difficulties in the event of an accident.

Reliable Cells

Price Pressure and Safety Concerns

Does the price pressure on installation companies exacerbate the situation?

Yes, I see the greatest problem arising from price pressure. The crucial element in occupational safety is the scaffolding for roof installations. Without scaffolding, significant costs can be saved. This issue isn’t new but is more prominent now due to the high number of installations and the current price competition. The roofing workers are the ones who suffer the most.

“In Germany, solar panels on the balconies of private houses and apartments are gaining popularity. This is what is needed now in Ukraine. Mass installation of such panels could help partially solve the problem of energy shortages due to strikes on Ukrainian thermal power plants” pic.twitter.com/izjJq74iYq

β€” Гакрукс (@Gakruks1)Β April 21, 2024

Active Isolation Protection

The rise of balcony solar systems and the trend towards DIY installations are reshaping the photovoltaic market. While these developments offer consumers more affordable and accessible options, they also pose challenges for traditional installers and raise safety concerns. The market’s evolution underscores the need for regulatory vigilance and industry adaptation to ensure both growth and safety.

Why solar balconies are successful

“The main reason for the success of these systems is that they offer people who did not have this possibility before the chance to use solar energy,” explains a representative of the German manufacturer Meyer Burger.

“Most people do not own a home or cannot install solar panels on the roof due to heritage protection laws, shading, or other roof construction conditions. For them, the solar balcony is attractive because they can use solar energy to produce their own electricity and reduce their energy bills,” he adds.

Germany is one of the first countries to invest in solar technology, and now it has the largest solar energy production in Europe.

However, apartment buildings have entered this widespread phenomenon later. This is because the decision to install photovoltaic panels on the roofs of buildings depends on the agreement of all tenants, and the distribution of electric energy between apartments is difficult.

“With solar balconies, though, suddenly it’s very, very easy. All these people who couldn’t have solar energy in the last ten years now have access to it,” explains the Meyer Burger representative.

To learn more about the solar systems for balconies and to get detailed pricing information, visit our 3Buy Solar Youtube Channel.Β or contact us forΒ  your area. Ready to buy? Check out our Solar Shop Online. Not sure how to size a solar battery? Read our article in our Solar Blog.