German solar firms see order surge as Iran war drives up energy prices

The Iran war has triggered an unexpected boom for Germany’s solar industry as rising oil and gas prices prompt homeowners to invest in rooftop solar systems, industry representatives and companies have told dpa.

The German Solar Industry Association said higher energy costs and concerns about possible cuts to renewable-energy subsidies were driving a sharp increase in demand.

“We are seeing signs of an exceptional solar boom driven by the energy crisis and consumer fears of subsidy cuts,” the association’s chief executive, Carsten Körnig, said.

Economy Minister Katharina Reiche had brought forward plans to reduce subsidies for new solar installations, prompting some homeowners to bring forward investment decisions.

While newly installed residential solar capacity rose 4% year-on-year in April, industry executives said customer inquiries and new orders had increased much more strongly.

The surge follows a difficult start to the year for the residential solar market. Between January and April, newly installed rooftop solar capacity on private homes fell 16% from the same period a year earlier.

Enpal, one of Germany’s largest solar installers, said customers ordered new photovoltaic systems worth €250 million ($290 million) in March and April, more than 30% higher than a year earlier. Chief executive Mario Kohle said demand for solar systems and heat pumps had “exploded” since the outbreak of the Iran war in late February.

Utility company Eon also reported a sharp increase in demand. Filip Thon, head of the group’s German energy business, said inquiries from private customers for solar installations had more than doubled compared with both previous months and a year earlier. He added that the jump in demand could not be explained by seasonal factors alone.