Investing in Renewable Energy in 2026: How Photovoltaics Stack Up Against Wind, Hydro, and Bioenergy

Investment
Written by the Logic Energy Editorial Team

Anyone looking to invest in renewable energy in 2026 has four structurally very different options: solar power, wind power, hydropower, and bioenergy. Expected returns, minimum investment, tax benefits, and liquidity vary by a factor of ten. This article provides an honest assessment of the four options—based on 2025 market data, the regulatory outlook, and a clear recommendation for investors with at least 100,000 euros.

The short answer

Of the four options, photovoltaics is the only renewable energy source with an established direct investment model for private investors with at least 100,000 euros in equity—offering full tax benefits and a 6–10 percent annual return. Wind power is typically invested in through cooperatives or funds; hydropower is invested in almost exclusively through stocks; and bioenergy is invested in through risky direct investments.

2026 is also a transitional year from a regulatory perspective: The EU state aid approval for the EEG 2023 expires on December 31, 2026, and as of July 17, 2027, a CfD requirement will apply to new plants with a capacity of 100 kW or more. Those who build before then will secure the current terms and conditions.

Anyone looking to invest in renewable energy in 2026 faces a fundamental decision—not whether to invest, but in which technology. Renewable energy sources are climate-friendly sources of energy derived from the sun (photovoltaics), wind, water, and biomass: Unlike fossil fuels, their resources are constantly replenished or are virtually inexhaustible, and their generation produces no CO₂ emissions. By 2025, they will already account for around 56 percent of net public electricity generation. Across all sectors—electricity, heating, and transportation—their share of gross final energy consumption in 2024, however, stood at only 22.4 percent (AGEE-Stat/Federal Environment Agency). The statutory target of the EEG 2023 is ambitious: By 2030, approximately 80 percent of electricity consumption is to come from renewable sources. We compare solar power, wind power, hydropower, and bioenergy in terms of return on investment, risk, minimum investment, tax benefits, and liquidity—providing a well-founded basis for decision-making with a clear recommendation at the end.

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1. Why 2026 Is a Special Year for Renewable Energy Investments

2026 is a transitional year in terms of regulation: The EU state aid approval for the EEG 2023 expires on December 31, 2026, and as of July 17, 2027, a CfD requirement will apply to new subsidized plants with a capacity of 100 kW or more. Anyone who commissions a plant in the coming months will secure the familiar feed-in tariff terms—after that, a new, less-tested regime will apply.

Three key figures define the year. First: In 2025, the German photovoltaic sector surpassed lignite and hard coal for the first time, generating approximately 87 TWh of electricity (+21 percent compared to 2024)—with 116.8 GWp of installed capacity by the end of 2025 (Fraunhofer ISE Energy Charts, as of January 1, 2026). Wind power reached 132 TWh in 2025 despite a larger installed capacity, but with a decline of −3.2 percent (a year with low wind speeds). Hydropower plummeted to 17.8 TWh due to drought (−22.5 percent). Bioenergy remained stable at around 41 TWh but is facing a phase-out. The energy sources are thus moving in opposite directions.

Second: On July 17, 2027, pursuant to EU Regulation 2024/1747, a Contracts for Difference (CfD) requirement will take effect for all newly subsidized generation facilities with a capacity of 100 kW or more. Profits exceeding a specified strike price will be returned to the government, and shortfalls will be compensated. Existing plants receiving EEG feed-in tariffs are protected under Article 14 of the German Basic Law (GG)—the CfD requirement applies only to new contracts entered into after this effective date.

Third: The draft reform of the EEG 2027 has now moved forward—the Federal Cabinet approved the government’s draft on July 29, 2026, along with the Grid Package. It provides for the elimination of the fixed feed-in tariff for new installations; above the respective capacity threshold, a two-sided CfD will replace the previous market premium. The reform is not yet legally binding—parliamentary deliberations in the Bundestag will begin in September 2026. We continuously update all current feed-in rates in our overview of the 2026 EEG feed-in tariffs. For investors, this means: Those who build in 2026 under the old regime know the conditions. Those who build in 2027 and beyond will be operating in a new landscape.

2. Investments in Renewable Energy: A Direct Comparison of the Four Approaches

Photovoltaics, wind power, hydropower, and bioenergy differ primarily in terms of their accessibility as investment opportunities. Only with photovoltaics can private investors with at least 100,000 euros in equity invest directly in a specific project; wind power is typically invested in through cooperatives or funds; hydropower is invested in almost exclusively through stocks; and bioenergy is invested in through high-risk direct investments.

Across all four forms of energy, there are five typical types of investments and investment products:

  • Direct investment: Purchasing a facility outright or a share in it. Highest minimum investment (typically 50,000–200,000 euros), longest term (20–40 years), full tax benefits—most commonly available for solar PV.
  • Closed-end funds / AIFs under the KAGB: Investment in a project company that bundles multiple investments. Minimum subscription of 5,000–25,000 euros, term of 10–15 years, illiquid.
  • ETFs (exchange-traded funds): Daily liquidity, minimum investment starting at 25 euros per savings plan, but high volatility and no direct exposure to real assets.
  • Crowdinvesting / Subordinated Loans: Crowdinvesting allows for investments in specific energy projects, such as individual solar power projects. Low barrier to entry (100–500 euros), high risk of default, and subordinated in the event of insolvency.
  • Cooperative Shares / Community Energy: Membership in a cooperative (eG) with 1 vote per member; shares typically range from 500 to 5,000 euros; focus on local value creation rather than maximizing returns.
A Direct Comparison of Renewable Energy Sources: Solar, Wind, Hydro, and Bioenergy in 2026
FeaturePhotovoltaicsWind powerHydropowerBioenergy
Share of the electricity mix in 2025~16% (87 TWh)~30% (132 TWh)~4% (17.8 TWh)~9% (41 TWh)
Growth in 2025 vs. 2024+21 %−3,2 %−22,5 %±0 %
Is direct investment possible?Yes, starting at 100,000 eurosLimitedPractically noRare, high-risk
Typical minimum investment100 euros (crowdfunding) – 100,000 euros (direct)500 euros (cooperative) – 5,000 euros (AIF)only through a stock savings plan5,000–25,000 euros (AIF)
Expected annual return6–10% (Direct Investment)2–6% (community-owned wind farm) / 3–6% (AIF)3–5% dividendhochvolatil, oft < 4 %
Policy leversIAB + Special Depreciation Allowance Fully DeductibleIn part, depending on the designNoPartly
Duration20–40 years old15–25 years oldunlimited (share)10–20 years
Source: Compiled by the author based on data from Fraunhofer ISE, BNetzA, BWE, BDEW, DGRV, and the Helm Group · As of August 2026. Return figures are not guaranteed.

3. Photovoltaics: A Growth Driver with Direct Investment Options

By 2025, photovoltaics had become the most important renewable energy growth technology in Germany and is the only renewable energy source to offer an established direct investment model for high-net-worth individual investors. With a minimum of 100,000 euros in equity, investors can participate directly in the returns from a specific PV system through one or more inverters—with full tax benefits and a 6–10 percent annual return.

Market Momentum 2025

With 87 TWh of energy generation (grid plus self-consumption) and 116.8 GWp of installed capacity by the end of 2025, Germany has exceeded its 2025 EEG target (115 GWp). The next statutory milestone is significantly higher: By 2030, installed photovoltaic capacity is set to rise to around 215 GWp—the EEG 2023 expansion path calls for 22 GW of new capacity per year to achieve this. Gross new capacity additions in 2025 totaled 16.2 GWDC, driven by large solar farms and commercial rooftops. The regulatory hurdles for solar energy are lower than for wind, and implementation times are shorter (typically 6–18 months for commercial PV, 2–4 years for ground-mounted systems).

Investing in Renewable Energy Through Solar Power: Here Are Four Ways to Do It

  • Direct investment through a private commercial PV system or a share in an inverter (typically requiring at least 100,000 euros in equity, 20–40-year term, 6–10% p.a. according to Helm portfolio data for 2024)
  • Closed-end PV funds (AIF, starting at 5,000–25,000 euros, expected return of 3–6%)
  • Solar Crowdinvesting via Subordinated Loans (starting at 100–500 euros, high risk)
  • Solar ETFs such as the iShares Global Clean Energy or the Invesco Solar ETF (daily liquidity, but structurally volatile—see Section 10)

An in-depth comparison of the four PV models can be found in our guide to direct PV investment and how it differs from funds, crowd investing, and ETFs. We describe the structured option with inverter revenue sharing on the investor landing page. If you’re not looking for an investment but rather your own PV system for self-consumption at your business, the section titled “Your Own PV System for Your Business” will guide you to the appropriate consulting services.

Current Compensation Rates (Effective August 1, 2026–January 31, 2027, BNetzA)

  • Up to 10 kWp: Partial feed-in 7.70 ct/kWh · Full feed-in 12.22 ct/kWh
  • 10–40 kWp: Partial feed-in 6.66 ct/kWh · Full feed-in 10.24 ct/kWh
  • 40–100 kWp: Partial feed-in 5.44 ct/kWh · Full feed-in 10.24 ct/kWh

Semi-annual reduction: approximately −1 percent. The reduction due on August 1, 2026, has already been implemented; the next reduction will take effect on February 1, 2027. Guarantee period: 20 years pursuant to Section 25 of the EEG 2023. We provide a complete overview of all categories in our summary of the 2026 EEG feed-in tariff.

4. Wind Power: Community-Owned Energy or Closed-End Fund

Wind power is Germany’s largest renewable source of electricity, but private investors can only invest in it indirectly: as a member of a community wind farm cooperative (minimum investment of 500 euros, typical return of 2–6 percent) or as a limited partner in a closed-end wind AIF (minimum investment of 5,000 euros, prospectus forecast of 3–6 percent IRR). Direct purchase of wind turbines by private individuals is the exception.

Market Trends 2025/2026

Onshore wind achieved an expansion of approximately 4.5 GW in Germany in 2025—installed capacity at the end of 2025: 68.1 GW (BNetzA, BWE analysis). The EEG expansion target for onshore wind is approximately 115 GW by 2030—so there is still a significant gap compared to the current installed capacity. The four BNetzA tender rounds in 2025 were consistently oversubscribed, with a total of over 14,445 MW awarded. The volume-weighted award prices fell steadily: 7.00 ct/kWh in February, 6.06 ct/kWh in November. The maximum value for 2026 was set at 7.25 ct/kWh (−1.36 percent compared to 2025). Despite this boom, wind power fell short of its 2025 electricity generation target by 3.2 percent due to unfavorable wind conditions—volatility is significantly higher than for solar power.

Community-owned wind farms and energy cooperatives

In Germany, there are about 1,000 energy cooperatives with approximately 220,000 members, who have collectively invested 3.6 billion euros (DGRV Annual Survey 2025). The largest examples:

  • Forstenrieder Park Community Wind Farm (Munich): 6 wind turbines, 33 MW, developed by BENG eG and EGF; 2.4 million euros in community capital fully subscribed in two days (2024). Subordinated loans with a minimum investment of 1,000 euros and a maximum investment of 25,000 euros per member.
  • Attendorn Community Wind Farm: 500 euros per share; projected minimum return of 6 percent per annum (Q2 2025).
  • Pfaffenhofen Citizens' Energy Cooperative: Project returns ranging from 3 percent (wind) to 8 percent (special projects).
  • Bürger-Energie-Syke (Lower Saxony): current return of 2 percent following a multi-year start-up phase.

Cooperatives offer a low barrier to entry and voting rights (1 member = 1 vote). The trade-off: expected returns are significantly lower than those of direct investments, as the focus is on social impact and local value creation.

Closed-End Wind AIFs and What Investors Should Look For

Closed-end wind power funds under the KAGB are typically offered with a minimum subscription of 5,000–25,000 euros; in the premium segment, the minimum is 50,000 euros and up. According to the prospectus forecast, the expected return is 3–6 percent IRR, often with a significant premium (up to 5 percent) and soft costs (up to 25 percent of the investment amount). Historically, closed-end wind funds have often underperformed significantly (trade publication Versicherungsbote; attorney Patrick Elixmann on wind power fund performance). What to look out for:

  • For cooperatives: Voting rights structure, obligation to make additional contributions (generally excluded), dividend payment history for the past 5 years
  • For AIFs: Prospectus review in accordance with BaFin regulations, the initiator’s track record, the amount of soft costs, and the planned geographic distribution
  • General: Direct sales requirement for systems of 100 kW or more, market price risk after the end of the EEG feed-in tariff period, suitability for repowering

5. Hydropower: Stable, but Hardly Accessible

In 2025, hydropower will account for only about 4 percent of Germany’s electricity mix and is virtually inaccessible to individual investors as a direct investment. There is a lack of potential for new construction, and the installed capacity of 5.9 GW has been stagnant for years. Investors are most likely to gain exposure to hydropower through shares in international utilities—such as Verbund AG, which offers a dividend yield of about 4–5 percent.

Why Germany's Economy Is Barely Growing

Germany’s river systems are largely developed. Water law permits are difficult to obtain, and environmental requirements (fish migration routes, riverbed dredging) drive up the costs of new construction and modernization. In 2025, generation plummeted by 22.5 percent to 17.8 TWh due to drought—an underestimated climate risk. Regionally, hydropower remains a major factor: In Bavaria and Baden-Württemberg, it accounts for 8–16 percent of the regional electricity mix (BDEW).

How Individual Investors Can Still Invest

Verbund AG (ATX, ISIN AT0000746409): Austria’s largest utility company, with 86 percent of its electricity generation coming from hydropower. Dividend for fiscal year 2025: 3.15 euros (including a special dividend of 1.15 euros). At a share price of around 60 euros in the spring of 2026 (end of May 2026: 59.90 euros), this corresponds to a dividend yield of approximately 5.0–5.3 percent including the special dividend (excluding it: approx. 3.3 percent). Power generation in 2025 fell significantly due to low water levels, and the first quarter of 2026 also remained weak (EBITDA −26 percent)—the stock reacts directly to precipitation data.

  • Statkraft (Norway): state-owned, not publicly traded—no private investment possible
  • BKW AG / Axpo (Switzerland): Hybrid utility with a hydroelectric component
  • EVN (Austria): Utility company with hydroelectric power generation
  • Hydro-Québec (Canada): state-owned
  • International hydropower funds: dominated by institutional investors (e.g., Allianz, Macquarie) – not available to retail investors

Conclusion: For German retail investors, utility stocks are more of a diversification tool than a true renewable energy investment—with a very long investment horizon (50–100 years), but little growth potential and high climate risk.

6. Bioenergy: Political Risks Overshadow Returns

In 2025, bioenergy will account for about 9 percent of Germany’s electricity mix, with approximately 41 TWh, making it larger than hydropower—but it faces structural pressures. By 2030, 4,979 biogas plants and 180 biomethane plants will reach the end of their 20-year EEG subsidies. A wave of plant closures looms; direct investments will be highly risky by 2026.

The Structural Situation in 2026

There are more than 9,500 biogas plants in operation in Germany. By 2030, 4,979 of these plants, plus 180 biomethane plants, will no longer be eligible for EEG subsidies because their 20-year feed-in tariff guarantee will expire (Bundestag response dated Dec. 11, 2024, Printed Paper 20/14210). The 2025 Biomass Package (Bundestag resolution of January 31, 2025, Federal Law Gazette of February 24, 2025, EU approval in September 2025) addressed this issue: The tender volume was increased to 1,300 MW in 2025 and to 1,126 MW in 2026, while the flexibility surcharge rose from 65 to 100 euros/kW. A DLG survey (agrarheute, November 2024) showed that 77 percent of the operators surveyed were considering decommissioning in 2025; in September 2025, energiezukunft.eu reported that approximately 700 plants with a total capacity of 400 MW were at acute risk of decommissioning.

Risks for Investors

Direct investments in biogas plants will not be the market for a new investor to enter in 2026. The structural risks:

  • Substrate cost risk: The corn husk content was reduced from 35 to 30 percent by mass in 2025, and to 25 percent in 2026—plants must switch to alternative inputs
  • Political Risk: Competition for farmland with food crops remains a contentious issue
  • Risk to Subsidies: Even the 2025 Biomass Package only partially offsets the loss of subsidies; competition in the bidding process is intensifying
  • Economic Situation: Existing operators are struggling to keep up, and new investments are rare

7. Comparison of Tax Leverage

The key difference in returns lies in the tax incentives. Only direct investments structured as commercial ventures can take full advantage of the investment deduction (§ 7g(1) EStG), the special depreciation allowance (§ 7g(5) EStG), and the declining-balance depreciation (§ 7(2) EStG). ETFs, cooperative shares, and crowd investing do not have this leverage.

The three policy levers in detail

  • Investment Deduction (IAB) pursuant to Section 7g(1) of the German Income Tax Act (EStG): Up to 50 percent of the estimated acquisition costs may be deducted from taxable income in the year prior to the investment. Maximum amount: 200,000 euros per business. Profit threshold: 200,000 euros. Investment period: 3 years.
  • Special depreciation under Section 7g(5) of the Income Tax Act (EStG): An additional 40 percent of the acquisition cost reduced in accordance with the IAB method, which may be freely allocated to the year of acquisition and the following four fiscal years. The rate was doubled from 20 to 40 percent by the Growth Opportunities Act of 2024 (Federal Law Gazette I 2024 No. 108).
  • Declining-balance depreciation pursuant to Section 7(2) of the German Income Tax Act (EStG): Reintroduced by the Investment Booster Program—30 percent of the remaining book value for assets put into service between July 1, 2025, and December 31, 2027 (Federal Law Gazette I 2025 No. 161). For PV systems with a 20-year useful life, this effectively results in a peak depreciation rate of approximately 15 percent per annum.
Tax Incentives by Investment Type (as of 2026)
Type of investmentIAB § 7g(1)Special Depreciation under Section 7g(5)Declining-balance depreciation, Section 7(2)Withholding tax
Commercial PV direct investment > 100 kWpYesYesYes (through December 31, 2027)No (business income)
Wind AIF (Limited Partnership, Commercial)Per designPer designPer designNo (business income)
Community Energy CooperativeNoNoNoYes (on dividends)
ETF / Utility StocksNoNoNoYes (30% partial exemption for equity ETFs)
Crowdfunding (subordinated loans)NoNoNoYes (on interest)
Source: Sections 7, 7g of the Income Tax Act (EStG); Section 3, No. 72 of the Income Tax Act (EStG); Investment Income Tax Act (InvStG). Simplified explanation; not tax advice—the actual treatment depends on the specific structure.

You can find a detailed sample calculation for a 100,000-euro investment in our article on tax incentives for direct PV investments —IAB, special depreciation, and declining-balance depreciation combined.

8. Direct Comparison of Risk Profiles

The four renewable energy sources carry different risks—technical, regulatory, and political. Photovoltaics has the most predictable profile overall: Solar radiation fluctuates by only about 10–15 percent annually, while wind generation in 2025 was down 3.2 percent from the previous year, and hydropower actually declined by 22.5 percent.
Risk Matrix: A Comparison of Solar, Wind, Hydro, and Bioenergy
RiskPhotovoltaicsWind powerHydropowerBioenergy
Weather/Yield VolatilityLow (±10–15%)Medium (±15–25%)High (2025: −22.5%)Low (stable)
EEG Phase-out: December 31, 2026MediumMediumLowHigh
CfD requirement effective July 17, 2027MediumMediumLowLow (excluded)
Regulatory riskLowHigh (ages 3–7)HighMedium
Acceptance / Wave of lawsuitsLowHighLowMedium
Negative electricity pricesFunds (573 h 2025)MediumLowLow (adjustable)
Rating: Low = manageable, Medium = should be taken seriously, High = structurally high. Sources: BNetzA, AGEE-Stat, Fraunhofer ISE · As of August 2026. Not investment advice.

In 2025, 573 hours of negative wholesale prices were recorded in Germany (Federal Network Agency, Electricity Market Data 2025)—a significant increase compared to 457 hours in the previous year. For non-dispatchable generators (PV, wind), this means lost revenue during the most unfavorable hours. Hydropower and biogas plants can reduce output or shut down during these hours.

9. Insolvency Cases: What Can Go Wrong

The history of renewable energy investments includes documented cases of total loss, particularly in solar crowdinvesting and poorly structured funds: Sonneninvest Deutschland (2024), te Solar Sprint IV (2022), the UDI Group, and Prokon (2014, 75,000 investors). Recurring patterns: subordinated claims, lack of transparency regarding the use of funds, and excessively high soft costs.

The most significant documented cases:

  • Sonneninvest Deutschland GmbH & Co. KG (Erfurt): Preliminary insolvency proceedings were initiated on September 24, 2024, at the Erfurt Local Court (Case No. 171 IN 290/24). The parent company, Sonneninvest GmbH (Vienna), had bankruptcy proceedings opened against it by the Vienna Commercial Court on September 12, 2024. Some investors lost their entire investment.
  • te Solar Sprint IV GmbH & Co. KG: Filed for insolvency on May 2, 2022; BaFin publication pursuant to Section 11a of the German Investment Act (VermAnlG) on May 12, 2022; insolvency proceedings began on July 4, 2022 (Leipzig Local Court, Case No. 401 IN 800/22). There was a risk of total loss.
  • te Solar Sprint II and III: On December 10, 2021, BaFin ordered the reversal of transactions due to unauthorized deposit-taking activities.
  • UDI Group: Several bankruptcies—UDI Energie Festzins III–IX, UDI Energie Mix Festzins, te energy sprint I, UDI Immo Sprint.
  • Prokon: Insolvency in 2014, 75,000 investors affected—to this day, the most prominent example of a failed profit-sharing rights model.

What investors can learn from this:

  • In the event of insolvency, subordinated loans and profit participation rights must be repaid before equity investors but after all other creditors—the risk of total loss is very real
  • BaFin publications under Section 11a of the German Investment Act (VermAnlG) serve as an early warning signal that every crowdinvesting investor should review before subscribing.
  • High advertising costs (often through influencer channels) frequently indicate high soft costs
  • The liability structure of the contracting party (GmbH vs. KG vs. registered business entity) is a key factor in determining the risk profile

10. Renewable Energy ETFs: Why They Fall Short Structurally

When you invest in renewable energy through ETFs, you’re buying securities from solar, wind, and battery storage companies—not the electricity itself. This results in high volatility and little correlation with investment returns: The iShares Global Clean Energy ETF (ICLN) returned −4.13 percent per year over five years, while the Invesco Solar ETF (TAN) lost over 50 percent combined in 2023 and 2024.

Renewable Energy Funds at a Glance: ETFs vs. Closed-End AIFs

Renewable energy funds come in two forms: exchange-traded funds (ETFs) that track a sector index (daily liquidity, starting at 25 euros/savings plan, high volatility), and closed-end specialized alternative investment funds (AIFs) under the German Investment Code (KAGB) that invest in individual real-world wind or solar projects (10–15-year lock-in period, minimum subscription of 5,000–25,000 euros, 3–6 percent IRR according to the prospectus). Both are purely capital investments without the tax benefits of a direct commercial investment.

In addition to ETFs and AIFs, two other investment vehicles specifically address the desire for sustainable investing: sustainable investment funds, which select their holdings based on environmental, social, and governance (ESG) criteria, and green bonds, which issuers use to finance environmental projects such as offshore wind farms—a single bond often bundles an entire portfolio of energy assets. Both offer broad diversification and regulated reporting requirements, but—like ETFs—they do not provide any of the tax advantages of a direct investment.

iShares Global Clean Energy UCITS ETF (INRG / ICLN)

  • ISIN IE00B1XNHC34, TER 0.65 percent; Fund assets as of May 2026: $4.44 billion, approximately 107 holdings
  • Performance NAV (Fact Sheet as of March 31, 2026, ICLN US): 1 year: +62.45 percent; 3 years (annualized): −1.17 percent; 5 years (annualized): −4.13 percent; 10 years (annualized): +8.92 percent
  • 52-week range for INRG.L: 506.00 to 914.50 pence (range ±45 percent); 3-year standard deviation: 24.18 percent

Update, Early Summer 2026: ICLN was trading at around $21 in mid-2026, up about 27 percent since the start of the year. The short-term rally does nothing to change the structural 3- to 5-year downtrend—it merely underscores the high volatility.

Invesco Solar ETF (TAN) and Why Its Performance Is So Volatile

29 holdings, heavily concentrated in Nextracker, First Solar, Sunrun, and Enphase. Annual performance: 2020 +233.9 percent; 2021 −25.10 percent; 2022 −5.24 percent; 2023 −26.79 percent; 2024 −37.62 percent; 2025 +48.31 percent (MSCI World: 2024 +18.67 percent; 2025 +21.09 percent). Stock prices of renewable energy companies react to expectations—political signals, Fed interest rate expectations, and module price movements from China—not to actual electricity production. For investors without significant tax leverage and with daily liquidity needs, ETFs can still make sense as a small sector allocation (5–10 percent of the portfolio), but not as a primary investment.

11. Outlook: Geothermal Energy, Hydrogen, Repowering, Agri-PV

Geothermal energy, hydrogen, and the repowering of existing sites are considered key topics for the future in 2026, but private investors still have very few direct investment options in these areas. Agri-photovoltaics is the exception: This growing segment, which has its own subsidy framework, is now also accessible to investors with at least 100,000 euros as a direct investment.
  • Geothermal Energy: Accounts for less than 0.1 percent of the electricity mix, but plays a much more significant role in the heating market. The Upper Bavarian Molasse Basin has 25 deep geothermal plants, 7 of which generate electricity. Bavaria is providing an additional 8.5 million euros in funding for the Geothermal Alliance (resolution dated December 30, 2024). There is currently no established investment opportunity for private investors.
  • Hydrogen: There are virtually no direct investment options for retail investors—the story revolves around stocks (Plug Power, Nel ASA, Linde) and is highly volatile. The Global X Hydrogen ETF lost 33 percent in 2024 and gained 43.8 percent again in 2025.
  • Repowering: A growth market for existing wind and solar power sites. Some closed-end alternative investment funds (AIFs) specialize in this sector, with expected returns of 4–7 percent. Site availability is limited.
  • Agri-PV: The dual use of agricultural land for food production and solar power generation is considered a growing sector with its own funding framework—now also accessible as a direct investment starting at 100,000 euros. For details, see our article on Agri-PV as an investment.

12. What makes photovoltaics a good investment?

Anyone investing 100,000 euros or more in 2026 will find that direct investment in photovoltaics is the only renewable energy option with five unique selling points: An investment in a specific plant, full tax benefits from IAB plus special depreciation plus declining-balance depreciation, a term of 20–40 years, a predictable annual return of 6–10 percent—and, depending on the contracting party, personal liability as a shareholder instead of the limited liability of a GmbH.

Five Reasons to Invest in Renewable Energy—With a Focus on Solar Power

  1. Access to a specific, actual facility. In the wind energy sector, private investors are cooperative members or limited partners; in hydropower, they are shareholders; and in bioenergy, direct investments are rare and risky. Only in the solar PV sector is there an established model in which, for an investment of 100,000 euros or more, investors can acquire a share of the inverter-generated revenue from a specific facility (or, optionally, the entire facility).
  2. Full tax leverage. Only direct investments structured as commercial ventures combine the IAB (50 percent), special depreciation (40 percent), and declining-balance depreciation (through December 31, 2027). For systems of 100 kWp or more, this leverage can be fully utilized and typically boosts the after-tax return by 30–50 percent above the gross return.
  3. Predictable returns. Solar radiation fluctuates by only 10–15 percent annually—significantly less than wind speeds (−3.2 percent in 2025) or water flow (−22.5 percent in 2025). Cash flows are predictable over the 20-year EEG guarantee period.
  4. Long term, long-term value creation. PV systems are designed to last 25–30 years; direct marketing via PPAs or market premiums can extend the income-generating period to 30–40 years. Closed-end AIFs typically have a term of only 10–15 years—a structural advantage for a long-term, sustainable investment.
  5. Contractual Partner Structure. Within the Helm Group, the contractual partner is mediplan Helm e.K.—a registered business entity with personal, unlimited liability of the owner pursuant to Sections 1, 17, and 19 of the German Commercial Code (HGB). The owner is liable with his or her personal assets, not just with the company’s assets. In the documented insolvency cases (Sonneninvest, te Solar Sprint, Prokon), the contracting parties were always GmbHs or KGs.

If you want to specifically evaluate whether a direct investment in solar power is right for you

The advantages of photovoltaics over wind, hydro, and bioenergy can only be fully realized if an investor’s individual capital, tax, and investment strategies are aligned. Investors with business income, a marginal tax rate of 42 percent or higher, and investment capital of 100,000 euros or more benefit the most—especially as long as the declining balance depreciation method remains in effect through the end of 2027 and the EEG framework is in place prior to the transition to CfDs. A complete analysis of the investor model can be found under “Photovoltaic Investment 2026.”

Your Initial Consultation: Clarifying Return on Investment, Tax Leverage, and Investment Preferences

If you’d like to find out whether a direct PV investment with inverter revenue sharing and liability borne by the Helm Group is a good fit for your situation, please schedule a no-obligation initial consultation. In about 30 minutes, we’ll discuss your expected return, tax advantages, and investment preferences—before you commit to anything.

Become an InvestorHow the Investment Model Works

Important Note: This article is intended solely for general informational purposes and does not constitute investment, tax, or legal advice. Return figures are based on historical data and are not a guarantee of future results. For advice tailored to your individual situation, please consult a licensed financial or tax advisor. The contracting party for PV direct investments within the Helm Group is mediplan Helm e.K. (a registered business entity with personal liability of the owner pursuant to Sections 1, 17, and 19 of the German Commercial Code (HGB)). Effective as of August 2026.

Frequently Asked Questions About Investing in Renewable Energy

Why should anyone invest in renewable energy in 2026?

2026 is a transition year: The EU state aid approval for the EEG 2023 expires on December 31, 2026; starting July 17, 2027, the CfD requirement will apply to new installations of 100 kW or more. Those who invest now will secure the familiar, predictable payment terms—after that, a new, less-tested subsidy regime will apply.

What is the best way to invest in renewable energy?

There are five options: direct investment (starting at approximately 50,000–200,000 euros), closed-end funds/AIFs (starting at 5,000 euros), ETFs (starting at 25 euros/savings plan), crowdinvesting (starting at 100 euros), and cooperative shares (starting at 500 euros). Only commercial direct investment—which is well-established in the solar power sector—offers the full tax benefit. Which option is right depends on your capital, tax situation, and liquidity needs.

Which funds invest in renewable energy?

Two types: publicly traded ETFs such as iShares Global Clean Energy (ICLN) or Invesco Solar (TAN), which track a sector index and can be traded daily but are highly volatile; and closed-end specialized AIFs under the KAGB that invest in actual wind or solar projects (10–15-year lock-in period, minimum subscription of 5,000–25,000 euros, 3–6 percent IRR according to the prospectus).

How does the return on investment for solar power compare to that of wind and hydroelectric power?

Direct investments in photovoltaics typically yield 6–10 percent per annum; community wind projects, 2–6 percent; wind AIFs, 3–6 percent IRR according to the prospectus; and hydropower via utility stocks, 3–5 percent in dividends. The key factor is the tax leverage: Only commercial direct investments take advantage of IAB, special depreciation, and declining-balance depreciation—which significantly boosts the after-tax return.

What is the difference between a community wind farm and a wind AIF?

With community-owned wind projects, you become a member of a cooperative (minimum investment of 500 euros, 1 vote per person, focus on local value creation, 2–6 percent return). The Wind AIF is a closed-end limited partnership investment (minimum investment of 5,000 euros, 3–6 percent IRR according to the prospectus, often with a premium and high soft costs). Cooperatives are more accessible, while AIFs are more return-oriented but more costly and illiquid.

Are renewable energy investments at risk due to the expiration of the EEG in 2026?

Existing plants currently receiving EEG feed-in tariffs are protected under Article 14 of the German Basic Law—they are not affected. The expiration of the EU state aid approval on December 31, 2026, and the CfD requirement effective July 17, 2027, apply to new contracts. Anyone who builds a facility in 2026 will still be covered by the current system; after that, the refinancing structure will change.

What are the advantages of personal liability for owners compared to limited liability company (GmbH) structures?

In the case of a registered sole proprietorship (e.K.), the owner is liable with his or her personal assets pursuant to Sections 1, 17, and 19 of the German Commercial Code (HGB)—not merely with the company’s assets, as is the case with a limited liability company (GmbH). For investors, this is a strong sign of trust: In the documented insolvency cases (Sonneninvest, te Solar Sprint, Prokon), the contracting parties were consistently GmbHs or KGs with limited liability.

When is investing in green assets via ETFs a better option than direct investment?

ETFs are a good choice when daily liquidity, small investment amounts (starting at 25 euros/savings plan), and broad diversification are more important than tax leverage and stable cash flows. They make sense as a sector allocation of 5–10 percent of the portfolio. As a primary investment, however, they are structurally disappointing: Over a 5-year period, ICLN delivered a return of −4.13 percent per year with high volatility.

What role do renewable energies play in a long-term sustainable portfolio?

They combine the characteristics of a tangible asset with a cash flow from the real economy. A commercial direct investment in solar power provides predictable returns and tax benefits over a period of 20–40 years—a key component of a long-term, sustainable investment strategy. ETFs and cooperatives serve as liquid and low-barrier-to-entry investments, respectively. The key factor remains how well the investment aligns with an individual’s tax and investment strategy.

Conclusion

Of the four ways to invest in renewable energy, solar power is the most accessible for high-net-worth individual investors: it is the only renewable energy source with an established direct investment model, full tax leverage, and predictable returns over 20–40 years. Wind power, hydropower, and bioenergy remain difficult for direct investors to access or are structurally risky, while ETFs are volatile and lack tax leverage. The regulatory window in 2026—before the mandatory CfD and the EEG system change—makes now a strategically favorable time to enter the market. Learn more under “Photovoltaic Investment 2026” and in the overview of the 2026 EEG feed-in tariff.

Sources and Legal Basis

Edited by Logic Energy. Last updated: August 2026.

Logic Energy Editorial Team https://www.logicenergy.de/
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