Photovoltaics as an Investment: A Comparison of ETFs, Real Estate, and Money Market Accounts in 2026
Solar PV systems with a 6–10 percent return versus ETFs, real estate, and money market accounts—with verified figures for 2026: an honest comparison of returns, tax benefits, liquidity, and risks. This guide is intended for investors, entrepreneurs, and anyone who wants to realistically assess solar PV as an investment in 2026.
The short answer
ETFs yield about 9.7 percent per year over the long term, but with fluctuations of up to −57 percent in years of market crashes. Real estate in major cities yields only a 1.5–2.5 percent net return, with construction interest rates of 3.3–4.0 percent. Overnight money accounts pay an average of about 1.5 percent (top promotional rate up to 4.00 percent, August 2026)—usually below the inflation rate of 2.8 percent.
As an investment, photovoltaics ranks in the upper mid-range with returns of 6–10 percent per year; it combines a tangible asset with predictable returns and offers tax benefits (IAB, special depreciation) that no other asset class provides in this form—though it is illiquid and a long-term investment.
Anyone considering photovoltaics as an investment in 2026 will quickly ask the crucial question: Is it a better return than an ETF, a rental property, or a money market account? Preserving capital is by no means a given these days—bank account products are losing value in real terms due to inflation, while tangible assets are in high demand. This comparison pits direct investment in solar power—backed by actual figures for 2026—against ETFs, real estate, and money market accounts, examining returns, inflation, taxes, liquidity, and real risks. Our article on solar system returns in 2026 for commercial and industrial applications provides a detailed look at the return structure of commercial installations.
Calculate the Financial Benefits of Solar Power for Your Situation
No return-on-investment comparison can replace a calculation based on your specific situation. Logic Energy calculates your individual return potential—using actual installation costs, the current feed-in tariff model, and your tax situation. The contractual partner for direct PV investments is mediplan Helm e.K., a partnership with personal liability of the owners.
The Background: Why the 2026 Comparison Is Relevant
Interest Rate and Inflation Environment
The ECB had lowered its deposit rate from 4.00 percent to 2.00 percent since June 2024, thereby halving savings interest rates. On June 11, 2026, it reversed course and raised the deposit rate back to 2.25 percent (effective June 17, 2026); some banks are passing the increase on to customers with overnight deposit accounts. The inflation rate stood at 2.8 percent in July 2026 (Destatis). In this environment, deposit products are losing value in real terms due to inflation, while alternatives in the form of tangible assets are increasingly in demand.
PV Market Environment in 2026
At the same time, the market environment for photovoltaic systems has changed fundamentally. System prices for turnkey installations are at historic lows. Fraunhofer ISE reports prices of 1,000–2,000 EUR/kWp for turnkey rooftop systems up to 30 kWp, 900–1,600 EUR/kWp for commercial systems over 30 kWp, and 700–900 EUR/kWp for ground-mounted systems starting at 1 MWp. Through the Growth Opportunities Act and the Immediate Investment Program, lawmakers have created new depreciation options. And the planned 2027 EEG reform is creating concrete pressure to act for anyone who still wants to invest in solar energy under the existing feed-in tariff system.
The Comparison at a Glance
The following table compares all four asset classes using the key metrics for 2026—a summary of the detailed sections below.
| Criterion | Photovoltaics | ETF (MSCI World) | Real Estate | Overnight money |
|---|---|---|---|---|
| Annual return | 6–10% (before taxes) | ~9.7% (historical) | 1.5–2.5% net | Ø 1.5% (Top 4.00%) |
| Fluctuation in value | low, no price risk | high (up to a −57% crash in 2008–09) | medium | none |
| Liquidity | illiquid, ~20-year commitment | tradable daily | very low | daily |
| Policy levers | IAB + Special Depreciation (§ 7g EStG) | 30% partial exemption (effective rate: 18.46%) | Depreciation + 10-Year Tax Exemption | none (26.375% compensation) |
| Real asset | yes | no | yes | no |
| Inflation Protection | Yes (for personal use) | Yes (in the long term) | Yes (indexed rent) | no (actual negative) |
| Correlation with the Stock Market | low | completely | medium | none |
| Minimum bet | starting at ~50,000–100,000 EUR | starting at 1 EUR | starting at ~25,000–90,000 EUR equity | starting at 1 EUR |
| Source: PV – Helm Group, portfolio data for 2024 (no guarantee); ETF – MSCI World Average 1975–2024 (Finanztip); Real Estate – Net Rental Yield in Major Cities; Money Market Accounts – Biallo/Verivox, August 2026 · Comparison for informational purposes only; not investment advice; past performance is not a guarantee of future results. | ||||
Direct Comparison of Returns
Call Money and Time Deposits
The best overnight deposit accounts will pay up to 4.00 percent in August 2026 following the ECB’s interest rate hike (promotional rate for new customers, e.g., Chase, norisbank), but the market average remains at only around 1.50 percent. One-year time deposits with top providers yield around 3.0–3.25 percent. After deducting withholding tax (26.375 percent) and accounting for inflation, the average overnight deposit account holder is left with a negative real return. Promotional rates are time-limited; the base rate after the promotional period is the more relevant figure. (Source: Verivox, Biallo, Destatis, August 2026)
ETFs
Broadly diversified index funds are the liquid asset class with the highest long-term returns. The MSCI World delivered an average of 9.7 percent per year (net, in euros) from 1975 to 2024, while the S&P 500 has averaged around 10.3 percent per year since 1928. Finanztip recommends conservatively assuming a rate of around 6 percent per year for the future. The costs are minimal—leading ETFs have a TER of 0.05–0.20 percent. The downside: During the 2008–09 crash, the MSCI World lost up to −57 percent from peak to trough, and the recovery took years. (Source: Finanztip, 2026)
Real Estate
The traditional real-asset investment presents a mixed picture in 2026. Gross rental yields in A-tier cities range from about 2.8 to 3.6 percent, while in structurally weaker B/C-tier cities, they can reach 5.5 to 7 percent in some cases. Net—after accounting for management, maintenance, and the risk of rent loss—only 1.5–2.5 percent remains in major cities. With construction loan interest rates of 3.3–4.0 percent for a 10-year fixed-rate term, rental income alone generates virtually no positive cash flow. The housing price index rose by 1.4 percent year-over-year in the first quarter of 2026. (Source: Federal Statistical Office, Q1 2026; privatverkaufen.de Return on Investment Glossary 2026)
Photovoltaics as a Direct Investment
Commercial rooftop and ground-mounted systems generate a pre-tax return of 6–10 percent per year over typical operating lifespans of 20–40 years (Helm Group, 2024 portfolio data). Residential rooftop systems yield 3.5–8 percent, depending on the self-consumption rate and use of storage. The key factor in self-consumption is this: Every kilowatt-hour consumed on-site replaces grid electricity at a cost of about 35 ct/kWh, rather than the feed-in tariff of 7.70 ct/kWh—four times as much. Furthermore, returns from solar energy are not correlated with the stock markets.
- 6–10 percent – commercial solar power, annually before taxes (Helm Group, 2024)
- 9.7 percent – MSCI World ETF, historical average per year, 1975–2024 (Finanztip)
- 1.5–2.5 percent – Real Estate, Net Rental Yield in Major Cities (2026)
- 1.5 percent – overnight deposit, market average (Biallo/Verivox, August 2026)
Solar Power vs. ETFs: Which Offers a Higher Return?
An ETF tracking the MSCI World has historically yielded about 9.7 percent per year—nominally more than a direct investment in solar power, which yields 6–10 percent per year, but significantly more volatile (down to −57 percent during the 2008–09 crash) and without any tangible assets. After taxes, solar power can catch up for investors with a high marginal tax rate: the IAB and special depreciation (§ 7g EStG) reduce the net investment, while ETF gains are subject to withholding tax. The ETF wins in terms of liquidity, while solar power wins in terms of predictability and tax leverage.
Photovoltaics as a Direct Investment: Your Own System, a Solar Farm, or an Investment?
Direct investment in one's own facility
With a traditional direct investment in photovoltaics, you purchase your own rooftop or ground-mounted system and become the owner of the photovoltaic system. Photovoltaic systems typically have a lifespan of 20 to 40 years, making them a long-term investment. You bear the investment costs but take full advantage of tax incentives (IAB, special depreciation, declining-balance depreciation) and retain control over electricity sales and operations. This model is suitable for entrepreneurs and investors with a high marginal tax rate who are seeking predictable income over 20+ years.
Investments in Solar Parks and Direct Solar Investments
Those who do not want to become owners themselves can invest in solar parks or larger photovoltaic projects. Such solar investments reduce the effort involved, spread the risk across multiple locations, and allow for smaller initial investments—but in return, they offer less control and reduced individual tax benefits. Our article on the photovoltaic profit-sharing model explains a model that preserves equity for businesses.
What Investors Should Compare
Over a period of 20+ years, the quality of the project developer and operator determines the actual return on investment. Factors worth examining include: the location and yield forecast for the rooftop or ground-mounted site, the feed-in tariff and direct sales model, the technology (modules, inverters), and the contractual safeguards. A transparent partner will calculate the individual return potential based on actual investment costs and your tax situation.
Subsidies and Feed-in Tariffs for 2026
EEG Feed-in Tariff Starting in August 2026
Photovoltaic systems are the only asset class that offers legally guaranteed minimum returns. Under the Renewable Energy Sources Act (EEG), the following rates have applied to rooftop systems up to 10 kWp since August 1, 2026: 12.22 ct/kWh for full feed-in and 7.70 ct/kWh for partial feed-in (Federal Network Agency, valid through January 31, 2027). These rates replace the rates valid through July 31, 2026, of 12.34 and 7.78 ct/kWh, respectively; the next reduction is scheduled for February 1, 2027.
Direct marketing and market premium
Larger plants sell their electricity through direct marketing and receive the market premium based on the applicable value. In 2025, the market value for solar fluctuated between approximately 2.0 and 11.0 ct/kWh—meaning that, in terms of revenue, selling electricity is more variable than the fixed feed-in tariff, but offers additional revenue during periods of high prices. Details on the current feed-in tariffs and degression are provided in our guide to EEG feed-in tariffs for 2026.
2027 EEG Reform: Urgent Need for Action by Investors
An important date: The planned 2027 EEG reform will introduce bilateral contracts for difference (CfDs) for new installations. Anyone who still wants to invest under the current system must ensure that the facility is commissioned before July 17, 2027. This sets a clear timeline for investors relying on the existing feed-in tariff. Our article explains the details of the CfD requirement for PV investors starting in 2027.
Tax Benefits: Where Solar Power Is in a League of Its Own
For comparison of the tax treatment of other investment classes: overnight money —withholding tax of 26.375 percent on income exceeding the saver’s allowance (1,000 EUR / 2,000 EUR for married couples), no tax planning options. ETFs – Withholding tax with a 30 percent partial exemption for equity ETFs, effective rate 18.46 percent; fair and transparent, but offers little room for tax planning. Real estate – New construction starting in 2023 is subject to a 3 percent straight-line depreciation, plus an additional 5 percent declining-balance depreciation (Growth Opportunities Act 2024); after a 10-year holding period, the capital gain on sale is tax-free.
Solar power systems offer the most comprehensive range of tax incentives—for taxable systems over 30 kWp:
- Investment Deduction (IAB, Section 7g of the Income Tax Act (EStG)): Bis zu 50 Prozent der geplanten Anschaffungskosten einer einzelnen Investition vorab; der maximale IAB-Summenbetrag pro Steuerpflichtigem zum Bilanzstichtag ist auf 200.000 EUR begrenzt (§ 7g Abs. 1 Satz 4 EStG).
- Special Depreciation (Section 7g(5) of the Income Tax Act): Since the passage of the 2024 Growth Opportunities Act, an additional 40 percent in the first five years.
- Declining-balance depreciation: Since the launch of the Immediate Investment Program in July 2025, this has been three times the straight-line depreciation rate, capped at 30 percent of the remaining book value per year. For photovoltaic systems, the straight-line depreciation rate is 5 percent, so the declining-balance rate is 15 percent; only battery storage systems qualify for the 30 percent rate (Section 7(2) of the Income Tax Act [EStG], for investments made from July 1, 2025, through December 31, 2027).
- Tax exemption (Section 3, No. 72 of the Income Tax Act (EStG)): Systems up to 30 kWp are fully exempt from income tax—plus 0 percent sales tax on the purchase.
For a 100,000-euro investment and a marginal tax rate of 42 percent, the combination of the IAB and special depreciation results in tax savings of over 30,000 euros over two years—a benefit that no other asset class offers in this form. Our article on photovoltaics and tax savings provides the exact calculation. (Source: Section 7g of the German Income Tax Act (EStG), Federal Law Gazette I 2024 No. 108, Federal Law Gazette 2025 I No. 161)
Battery Storage as a Revenue Driver
Because every kilowatt-hour of self-consumed electricity replaces about 35 ct/kWh of grid electricity, a storage system shifts energy output to where it is most valuable: self-consumption. Furthermore, under the Solar Peak Act, feed-in tariffs will no longer apply during periods of negative electricity prices starting in March 2025—in 2025, there were 573 hours with negative spot market prices. A storage system buffers these periods and makes photovoltaics a more predictable investment. Our page on battery storage investments shows how storage systems pay off as a standalone investment.
Predictability and Liquidity
Photovoltaic systems offer legally guaranteed feed-in tariffs for 20 years, which makes it easier to plan returns. ETFs, on the other hand, are the most liquid form of investment: they can be traded within seconds, and proceeds are credited to the account on T+2—but the returns are entirely variable. Money market accounts combine daily accessibility with nominal value stability and are protected by deposit insurance up to 100,000 EUR per bank. Real estate is the least liquid asset class: the typical time to sell is 3–6 months, further limited by rent control, renovation requirements, and GEG regulations.
The trade-off for the predictability of solar power is illiquidity—the capital is tied up for the duration of the investment. Those who need short-term access to their funds are better off with money market accounts or ETFs; those seeking predictable cash flows over 20 years are better off with a solar power system.
Risks Clearly Identified
| Risk Type | Photovoltaics | ETF | Real Estate | Overnight money |
|---|---|---|---|---|
| Main Risk | Regulation (2027 EEG Reform) | Market risk (up to −57%) | Concentration risk (1 property) | Inflation Risk |
| Price/Market Risk | Market price for solar power: 2.0–11.0 ct/kWh (2025) | Currency Risk (70% U.S. Stocks) | Regional Price Fluctuations | Interest Rate Risk (ECB) |
| Technique / Substance | Inverter: 10–15 years (1,500–3,000 EUR) | – | Vacancy rate: 2.2% (up to 6.9% in some regions) | – |
| Costs / Additional Costs | Operation & Maintenance (O&M) | TER 0.05–0.20% | 9–13% Additional Purchase Costs | none |
| Capital Protection | Asset Value + Minimum EEG Feed-in Tariff | No capital protection | Real asset | Deposit Insurance: 100,000 EUR |
| Source: Federal Network Agency, empirica regio (2025), Solar Peak Act, Finanztip · As of August 2026. This is not investment advice; information provided without warranty. | ||||
One’s own risk tolerance is therefore the first factor in the investment decision: Those who cannot tolerate price fluctuations are better off avoiding ETFs; those who need maximum liquidity should opt for direct investments in solar power. Over a 20+ year investment horizon, the quality of the project developer and operator is the crucial due diligence consideration.
Inflation Protection: Which Investment Holds Its Value?
ETFs offer the strongest protection against inflation over the long term: Companies pass on cost increases through price hikes, and the historical real return stands at 5–7 percent per year after inflation. Real estate provides direct protection through index-linked rents—re-leasing rents rose by about 3.5 percent nationwide in 2025 (BBSR), but the real appreciation is only 0–2 percent per year. Money market accounts offer no protection against inflation: nominal value remains stable, but purchasing power declines.
PV systems offer mixed protection: The EEG feed-in tariff is nominally fixed for 20 years but loses value in real terms due to inflation. In contrast, self-consumption benefits from rising electricity prices: With grid electricity prices increasing by about 2–3 percent annually, today’s commercial electricity price of 35 ct/kWh would be around 43–45 ct/kWh in ten years—making every kWh consumed on-site more valuable.
Which asset class is right for whom?
Liquidity: Money Market Accounts and ETFs
Call money is suitable as a liquidity reserve and safety cushion (3–6 months’ salary), but not as a standalone strategy. ETFs are the right choice for long-term wealth accumulation starting at age 15, offering full liquidity and low overhead—with a minimum investment of 1 euro.
Tangible Assets: Real Estate and Solar Power
Real estate is a worthwhile investment if you purchase the right properties and plan to hold them for 10+ years (25,000–90,000 EUR equity plus ancillary costs). Solar power is a particularly attractive investment for business owners with a marginal tax rate of 42 percent or higher, companies with high self-consumption, and portfolio investors seeking uncorrelated cash flows from solar investments.
Consider photovoltaics as an investment
No return-on-investment comparison can replace a calculation based on your specific situation. Logic Energy calculates your individual return potential—based on actual installation costs, the current feed-in tariff model, and your tax situation. The contractual partner for direct PV investments is mediplan Helm e.K. (personal liability of the owners pursuant to Sections 1, 17, and 19 of the German Commercial Code (HGB)).
Frequently Asked Questions
Is solar power really a safe investment?
Photovoltaics is a predictable but not risk-free investment. The EEG feed-in tariff offers legally guaranteed minimum revenues for 20 years. Real risks include regulatory changes (the 2027 EEG reform), market price fluctuations in direct sales, and technical failures. Compared to ETFs, photovoltaics is less volatile but also less liquid.
What returns do solar power systems offer compared to money market accounts, ETFs, and real estate?
Commercial PV systems generate 6–10 percent per year before taxes. Historically, ETFs have yielded around 9.7 percent per year (volatile), real estate in major cities 1.5–2.5 percent net, and overnight money market accounts an average of around 1.5 percent. After taxes, solar power can catch up to ETFs if the marginal tax rate is high (Source: Helm Group 2024, Finanztip, Biallo).
What distinguishes solar power from real estate as an investment?
Both are tangible assets, but solar power offers a legally guaranteed feed-in tariff, greater tax benefits (IAB, special depreciation), and lower operating costs. Real estate scores points with tax-free sales after ten years and index-linked rents, but carries concentration risk, 9–13 percent in closing costs, and renovation obligations.
What is the difference between a direct investment and an investment in a solar farm?
With a direct investment, you become the owner of your own facility and enjoy full tax leverage and full control. When investing in solar parks, you invest in shares of larger photovoltaic projects—less effort and broader diversification, but with less control and less individual tax leverage.
How liquid is PV compared to ETFs and real estate?
Photovoltaics are illiquid: Capital is tied up for the system’s operational life of about 20 years. ETFs can be traded daily, and money market funds are even available on a daily basis. Real estate falls somewhere in between, with a sales period of 3–6 months. Photovoltaics are therefore a long-term model for predictable cash flows, not for short-term capital needs.
What happens if the EEG subsidy changes?
The feed-in tariff is set at the time of commissioning and remains in effect for 20 years—subsequent changes do not affect existing systems. For new systems, the rates decrease every six months (currently 7.70 ct/kWh for partial feed-in up to 10 kWp as of August 1, 2026). The 2027 EEG reform introduces CfDs; commissioning under the current system is possible until July 17, 2027.
What is the minimum amount required to invest in solar power as an investment?
A direct investment in your own commercial facility starts at around 50,000–100,000 EUR, depending on the project. Investments in solar parks or revenue-sharing models allow for smaller initial investments. By comparison: ETFs and money market accounts are available starting at 1 euro, while real estate in major cities requires 25,000–90,000 EUR in equity plus additional costs.
Who is the contracting party for Logic Energy's PV direct investment?
The contracting party for PV direct investments 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). Logic Energy is the brand under which the planning, construction, and operation of the plants are carried out.
Conclusion: Every asset class has its place
As an investment, photovoltaics ranks in the upper mid-range with returns of 6–10 percent per year and combines a tangible asset, predictable cash flows, and tax advantages that neither ETFs, real estate, nor money market accounts offer in this form. ETFs excel in liquidity and long-term returns; real estate in tax-free sales after ten years; and money market accounts in accessibility. The question isn’t which asset class is best, but which one fits your profile—and for investors with a high marginal tax rate and a long-term horizon, solar power is often the underrated option.
For those who want to take the next step: Become an investor with Logic Energy. The article on the Logic Energy investor model explains additional basics, and the page “Photovoltaics as an Investment” provides an overview. For companies without a large amount of equity capital, the PV model without equity is a good option.
References
- Federal Network Agency – EEG Subsidies and Rates (Feed-in Tariff as of August 1, 2026: 12.22 ct/kWh for full feed-in / 7.70 ct/kWh for partial feed-in up to 10 kWp)
- Federal Statistical Office – Inflation Rate for July 2026 (+2.8%)
- Federal Statistical Office – Housing Price Index, Q1 2026 (+1.4% year-over-year)
- Financial Tip – MSCI World / ETF Return (long-term ~9.7% per year; conservative estimate of 6% expected)
- Biallo – Overnight Money Market Account Comparison, August 2026 (Top ~4.00%, Average ~1.5%)
- privatverkaufen.de – Gross and Net Rental Yields for 2026 (A-Class Cities ~2.8–3.6% gross)
- Laws on the Internet – Section 7g of the Income Tax Act (IAB and special depreciation allowances); Section 7(2) of the Income Tax Act (declining-balance depreciation); Section 3(72) of the Income Tax Act (tax exemption)
- Helm Group – Portfolio Data 2024 (Return of 6–10% per year, no guarantee)
Edited by Logic Energy. Last updated: August 2026.
