Ground-Mounted Photovoltaics 2026: Planning, Building, and Operating a Solar Farm
Ground-mounted photovoltaic systems will drive Germany’s solar expansion in 2026. In the first half of the year, 4,010.4 of 7,394.4 megawatts of net new capacity came from ground-mounted PV—more than half of the market. This page shows landowners, municipalities, and investors which sites are suitable, what the legal framework is, how much a ground-mounted PV system costs, and what returns it generates.
Table of Contents
- What is a ground-mounted photovoltaic system?
- Market Outlook for 2026: Open Space Drives Expansion
- How much space does a solar farm require?
- What legal framework will be in effect in 2026?
- Permits and Grid Connection
- How much does a solar farm cost?
- How is the electricity compensated?
- Financing and Tax Framework
- Lease and Return on Investment
- Why Logic Energy
- Biodiversity and Special Forms
- Frequently Asked Questions
- Sources and Legal Basis
What is an open-space facility?
A ground-mounted photovoltaic system is a solar installation that does not require a building and uses its entire area for electricity generation. For landowners, municipalities, and investors, four questions are crucial: Is the site suitable? Can it obtain the necessary permits? What will construction cost? And what are the returns from operation? We answer these questions in the order in which they arise during the project—with figures that are backed by sources and current data.
This information is intended for landowners, municipalities, and investors who wish to evaluate the planning, construction, and operation of ground-mounted photovoltaic systems in Germany.
What is a ground-mounted photovoltaic system?
Four types of installations are frequently confused, but they differ significantly in terms of permitting, costs, and funding channels. The classic ground-mounted system completely covers the area with rows of modules and maintenance aisles. It is the most cost-effective option per kilowatt-peak and dominates the Federal Network Agency’s tenders. In technical jargon, the abbreviations PV-FFA and “open-field photovoltaics” have become established; “open-field solar plants” and “PV open-field plants” refer to the same thing.
| Design | Cost per kWp | Land Use | Typical application |
|---|---|---|---|
| Traditional Open Space | 700–900 EUR | Area fully occupied | Standard for EEG tenders, 5–50 MWp |
| Agri-Photovoltaics | 900–1,700 EUR | Farming Continues | if the agricultural status of the land is to be maintained |
| Roof-mounted system | 900–1,600 EUR | no competition for space | Commercial and Industrial Roofs for Self-Consumption |
| Floating PV | depending on the project | Water instead of land | Quarry lakes and reservoirs—a niche in Germany |
| Cost ranges: Fraunhofer ISE, Study on Levelized Cost of Electricity, July 2024. Depending on the mounting system, agri-PV costs are 30 to 50 percent higher than those of traditional ground-mounted systems. | |||
Advantages Over Roof-Mounted Systems
Compared to rooftop photovoltaic systems, ground-mounted systems offer four structural advantages:
Scalability: Projects ranging in size from 1 to over 600 MWp are possible; for rooftop installations, the upper limit is a few megawatts.
Optimal orientation: The tilt and orientation of the modules can be chosen freely and are not dictated by the shape of the roof.
No Shading: In open countryside, there are no buildings, chimneys, or trees to obstruct the view. Where there is space for wider row spacing, tracking systems can also be used.
Lower costs: 700 to 900 euros per kilowatt-peak, compared to 900 to 1,600 euros on large roofs—with ground-level access for maintenance and cleaning (Fraunhofer ISE).
Community energy projects range from 1 to 6 MWp. The typical size for EEG tenders is between 10 and 50 MWp. Large-scale projects exceed 100 MWp; the largest German project, the Witznitz Energy Park in Saxony, has a capacity of 605 MWp. The project size determines the type of grid connection, the permitting process, and how fixed costs are distributed per kilowatt-peak. For details on dual use, please visit our page on agri-photovoltaics.
Market Conditions in 2026
The reason is economic: While the expansion of rooftop installations for residential and commercial systems is declining, ground-mounted PV systems benefit from economies of scale and a stable tender framework. The total volume put out to tender for the first segment in 2026 is 9,900 megawatts, spread across three bidding rounds. For the energy transition, this segment is thus the most important building block in the expansion of solar energy.
Land Use Efficiency: Solar Power vs. Energy Crops
In the debate over competition for farmland, the scale of the issue is often underestimated. An open-space energy plant produces many times more energy per hectare than the same area planted with energy crops—the Center of Excellence for Nature Conservation and the Energy Transition estimates that the factor is 28 to 50 times higher than that of corn for a biogas plant.
The reason lies in physics: Plants convert solar energy through photosynthesis with an efficiency of about one percent, while photovoltaic systems achieve 20 to 23 percent. Added to this are losses during the fermentation or combustion of biomass. The Federal Environment Agency therefore recommends scaling back biomass cultivation in favor of ground-mounted photovoltaic systems.
Our analysis of photovoltaic expansion in Germany provides an overview of how expansion is progressing across all segments and what the figures mean for investors.
Space Requirements and Suitability
| Mounting System | Space requirements | Typical application |
|---|---|---|
| South-facing, fixed | about 1.0 ha/MWp | Standard projects: 5–50 MWp |
| East-West, bifacial | 0.7–0.8 ha/MWp | Grid-friendly yield profiles, large wind farms |
| Single-Axis Tracker | 1.1–1.3 ha/MWp | Locations with high levels of direct sunlight |
| Sources: C.A.R.M.E.N. e.V., Guide to Ground-Mounted Solar Power Plants · Fraunhofer ISE, Study on Levelized Cost of Electricity, July 2024. | ||
Suitable Sites for Ground-Mounted Solar Power Plants
Three factors determine suitability. First, size: For projects under about 3 hectares, the fixed costs for planning, permitting, and grid connection per kilowatt-peak are too high. Second, proximity to the grid: A substation within three kilometers keeps connection costs predictable. Third, conservation status: Natura 2000 sites, FFH areas, and landscape conservation areas are practically ruled out.
In addition, slopes of less than about 15 degrees and a vehicle-accessible driveway for the construction phase are required. A structural advantage over rooftops: In open countryside, there are no buildings, chimneys, or trees in the way that cast shadows throughout the day. Where there is space for wider row spacing, tracking systems can also be used, which increase yield compared to fixed modules.
Suitable
- 3 to 5 hectares or more in a single block
- Slope less than 15 degrees
- Power connection within 3 km
- access road suitable for vehicles
Premium
- 10 hectares or more in a single contiguous area
- within the 200-meter zone pursuant to Section 35 of the BauGB
- Substation less than 1 km away
- South-facing with a slight slope
Not suitable
- less than 2 hectares
- Natura 2000, FFH, Landscape Conservation
- More than 5 km to the utility connection
- heavy shade or a north-facing slope
How much electricity does one hectare generate?
The average specific yield in Germany is around 1,000 kilowatt-hours per kilowatt-peak per year. Southern Germany achieves 1,000 to 1,150 kWh/kWp, while Northern Germany achieves 850 to 1,000 kWh/kWp. Depending on the location, one hectare facing south thus generates between 850,000 and 1,150,000 kilowatt-hours annually.
Projections of 1,300 kWh/kWp or more require tracking systems, above-average solar radiation, and optimal freedom from shading—all at the same time. Our article on PV yield per kWp provides a more in-depth look at what yields are realistic.
Legal Framework 2026
"Privileged" means that the project is permitted in an outlying area without its own zoning plan, provided that there are no public interests that would preclude it. This shortens the project development process by six to twelve months.
It is important to distinguish between two zones: The priority zone under the German Building Code (BauGB) extends 200 meters from the outer edge of the roadway. The eligible zone under the Renewable Energy Sources Act (EEG) extends further, to 500 meters. A project located between these two zones is eligible for funding but requires a zoning plan.
Section 37(1)(2) of the EEG specifies which areas are eligible to participate in the tenders: converted land, roadside strips up to 500 meters wide, land in disadvantaged areas, impervious surfaces, landfills, parking lots, and rewetted peatlands.
The state-level exemption clause under Section 37c of the Renewable Energy Sources Act (EEG) has been an opt-out provision since the Solar Package I of May 16, 2024: Sites in disadvantaged areas are eligible for subsidies nationwide as long as a state does not actively exclude them. To date, no state has issued an exclusion regulation.
Highway Law: The Federal Highway Authority Weighs In
In addition to the BauGB and the EEG, a third regulation applies along highways and railways that is often overlooked in project planning. Section 9(2c) of the FStrG expressly exempts facilities for generating electricity from solar radiation from the ban on construction along federal highways—meaning that construction is generally permitted under highway law.
The Federal Highway Authority must still be consulted: for federal highways, within a 100-meter strip; for federal roads outside built-up areas, within a 40-meter strip—in each case measured from the outer edge of the paved roadway. If the structure does not require a permit, the project sponsor must give prior notice of the construction. Anyone wishing to use the 200-meter strip should plan this step well in advance.
Nature Conservation: Three Out of Five Biodiversity Criteria
Solar Package I has tightened the environmental requirements. Under Section 37(1a) and Section 48(6) of the EEG, operators of new tender projects must meet at least three of the following five criteria: extensive grassland use without pesticides or mineral fertilizers, flower-rich field margins, habitat structures such as deadwood and small bodies of water, module coverage of less than 60 percent of the parcel area, and undeveloped field margins of a specified minimum width.
These requirements are prerequisites for the bid, not optional extras—they must be included in the space calculation from the very beginning.
Permits and Grid Connection
Area inspection
Suitability, proximity to the grid, conservation status · 1–4 weeks
Fuse
Option Agreement with the Owner · 4–8 Weeks
Urban Planning
Land-Use Plan, Environmental Protection, and Species Conservation · 6–12 months
Call for Proposals
Bid submitted to the Federal Network Agency
Construction
Utility Connections and Construction · 3–9 months
Operation
Business management over a period of 20–40 years
Approval Process
Planning ground-mounted photovoltaic projects requires consideration of legal and environmental factors from the very beginning—land-use planning, species conservation, and grid connection proceed in parallel and are interdependent. Anyone who delays an assessment risks losing a growing season.
Grid connection as the second critical path
Systems up to approximately 20 MWp connect to the medium-voltage grid; the distribution system operator is the point of contact. Large-scale projects of 100 MW or more fall under the Power Plant Grid Connection Ordinance (KraftNAV). The KraftNAV was revised as of December 23, 2025; since then, large-scale battery storage systems have no longer been subject to its provisions. Details on the maturity assessment procedure are covered in our article on the KraftNAV amendment.
Municipalities with experience in solar park development can complete the zoning plan process in six to eight months. Where it is the first project, it typically takes twelve months or longer. An experienced project developer will reject sites for which he cannot obtain approval—this protects property owners from years of idle contracts.
How much does a solar farm cost?
| Cost Breakdown | Value | Source |
|---|---|---|
| Investment in ground-mounted solar systems over 1 MWp | 700–900 EUR/kWp | Fraunhofer ISE |
| Agri-PV Investment (0.5–2 MWp) | 900–1,700 EUR/kWp | Fraunhofer ISE |
| Operating Costs | 10–25 EUR/kWp/year or 1–2% of the investment | Fraunhofer ISE |
| Demolition Reserve Fund | 5–15% of the investment costs | Industry standard |
| Electricity Generation Costs | 4.1–6.9 ct/kWh (south to north) | Fraunhofer ISE, July 2024 |
| Fraunhofer ISE, Study on Levelized Cost of Electricity for Renewable Energies (5th edition, July 2024) and Current Facts on Photovoltaics in Germany. | ||
Comparison of Electricity Generation Costs
The levelized cost of electricity is the key benchmark: It is lower than the levelized costs of all fossil fuel alternatives—including natural gas—and explains why ground-mounted solar power plants are now being built through power purchase agreements even without feed-in tariffs.
Compared to rooftop photovoltaic systems, ground-mounted PV systems are less expensive to install and operate. According to Fraunhofer ISE, large rooftop systems cost between 900 and 1,600 euros per kilowatt-peak, and small systems up to 2,000 euros—compared to 700 to 900 euros for ground-mounted systems. This is due to economies of scale, standardized mounting structures, and ground-level accessibility for maintenance and cleaning.
Operating Costs and Demolition Reserve
At the end of the term, the property must be completely demolished, for which authorities require a security deposit—typically a directly enforceable bank guarantee. This demolition reserve is often omitted from many preliminary calculations. It does not dramatically reduce the return on investment if it is set aside over the term, but it throws off any calculation that does not factor it in until the very end.
What can your space accommodate?
We'll run the numbers for your location using the figures on this page—yield per unit area, investment requirements, and a realistic revenue range. Free of charge and with no obligation.
Compensation and Revenue
Ground-mounted solar power plants with a capacity of 1 MWp or more are marketed through tenders issued by the Federal Network Agency. Three bidding rounds per year will allocate a total capacity of 9,900 megawatts for 2026.
| Bidding deadline | Amount of Additive | Ø volume-weighted premium value |
|---|---|---|
| 01.03.2025 | 2,638 MW | 4.66 cents per kWh |
| 01.07.2025 | 2,271 MW | 4.84 cents per kWh |
| 01.12.2025 | 2,341 MW | 5.00 cents per kWh |
| 01.03.2026 | 2,299 MW | 4.94 cents per kWh |
| Source: Federal Network Agency, Completed Solar Power Plant Auctions—First Segment. The results of the July 1, 2026, bidding round were not yet available at the time of publication. | ||
The maximum amount is capped by law
This figure is more important for project cost estimates than it appears: Section 37b(1) of the EEG caps it at a maximum of 5.9 cents per kilowatt-hour. The cap cannot be raised further without a change in the law, even if financing and grid connection costs rise. Anyone who bases a project cost estimate on rising feed-in tariff rates is acting contrary to the text of the law.
Instead of participating in a tender, operators can sell the electricity directly to an industrial customer. The German solar PPA price stood at 49.77 euros per megawatt-hour in the fourth quarter of 2025, or 4.98 ct/kWh—virtually on par with the tender price and declining for the fourth consecutive quarter. The PPA premium that was once common has thus disappeared.
Starting July 17, 2027, new feed-in tariff contracts must be structured as bilateral contracts for difference (CfDs). The Cluster article explains what the CfD requirement means starting in 2027. The 2026 EEG Feed-in Tariff Guide explains the full range of feed-in tariff rates across all plant classes.
Financing and Taxes
- Starting at 3.98% effective annual interest rate
- up to 100% of the investment costs
- A maximum of 150 million euros per project
- Term up to 30 years
- Up to 5 interest-only years
The loan application must be submitted through your primary bank, and must be completed before construction begins. The interest rate depends on your creditworthiness, collateral, and the term of the loan.
- IAB pursuant to Section 7g(1): up to 50% of the acquisition cost
- Special depreciation under Section 7g(5): 40% over five years
- Declining-balance depreciation pursuant to Section 7(2): 15% per year for PV
The often-cited 30 percent cap applies only to shorter service lives, such as those of battery storage systems. The legal basis for this is the 2025 Immediate Investment Program, which is set to expire on December 31, 2027.
Our article on photovoltaics and taxes explains exactly how these tools can be combined and what their limitations are.
Lease and Return on Investment
What Landowners Receive
The key factors determining the lease amount are location, proximity to the grid, land area, and lease term. Just as important as the price are the contract clauses: indexation, dismantling guarantees, land registry entries, and term options determine the real return over a period of 20 to 30 years. Our page on leasing land for solar parks covers the complete lease guidelines, the twelve mandatory clauses in the lease agreement, and the tax pitfalls.
What Investors Expect
From an investor’s perspective, the calculation is simpler than it seems: One hectare has a capacity of about 1 MWp, generates approximately 1,000,000 kilowatt-hours, and, at a feed-in tariff of 4.94 ct/kWh, yields about 49,400 euros gross per year. From this, operating costs of 10,000 to 25,000 euros per hectare are deducted, along with the decommissioning reserve. The final IRR is determined by the financing structure. You can find an overview of the potential returns on direct PV investments as an asset class on our Investment Pillar.
Why Logic Energy
Personal liability of the owner
The contracting party is mediplan Helm e.K. The owner is personally and fully liable in accordance with Sections 1, 17, and 19 of the German Commercial Code (HGB).
Active land acquisition
We're looking for properties—not the other way around. Initial assessment within four weeks.
Everything under one roof
Site acquisition, permitting, EPC, and operations management over a 20- to 40-year term.
Over 40 years of experience
The Helm Group supports projects ranging from 1 to 250 MWp in Germany and Italy.
Get a free property appraisal
Do you own 3 hectares or more? We’ll assess your land for eligibility, proximity to the power grid, and the permitting process, and get back to you within four weeks with a specific lease offer.
Biodiversity and Special Forms
With extensive management that avoids the use of pesticides and mineral fertilizers, the areas beneath and between the rows of modules develop into diverse habitats. Among other things, the following have been documented:
More than 350 plant species at the 30 solar parks studied
34 species of butterflies and 30 species of grasshoppers
The Skylark and the Sand Lizard as Regular Indicator Species
Wild bees and ground-nesting birds benefit from pesticide-free maintenance
For project developers, this is more than just a side effect: Demonstrable environmental enhancement significantly increases acceptance both in the zoning plan process and within the host community. Nature conservation and climate protection are not at odds with one another in this context.
Special Shapes
Floating PV on disused quarry lakes and reservoirs has so far existed in Germany primarily as pilot projects. Parking lot PV covers existing parking areas and provides additional weather protection—the use of sealed surfaces is eligible for subsidies under Section 37 of the EEG. Moor PV on rewet soils combines emissions reduction from the soil with electricity generation.
How Local Governments Benefit
Host municipalities benefit twice over. Under Section 29(1)(2) of the Trade Tax Act (GewStG), trade tax is allocated in a 90-to-10 ratio—90 percent goes to the host municipality. In addition, Section 6 of the Renewable Energy Sources Act (EEG) allows for a financial share of up to 0.2 ct/kWh. A 50-MWp solar park with an annual output of approximately 50 gigawatt-hours generates about 100,000 euros per year on top of the trade tax. This local economic benefit is often the strongest argument in the zoning plan process—it directly benefits local residents and makes climate protection cost-effective.
FAQ
At what size does an open-space system become worthwhile?
A project becomes economically viable when it covers a contiguous area of about 3 to 5 hectares. Below that size, the fixed costs for planning, permitting, and grid connection per kilowatt-peak are too high. Starting at 10 hectares, the conditions improve significantly.
How much land does one megawatt require?
Approximately 1.0 hectare per MWp with a fixed south-facing orientation. Bifacial east-west mounting requires only 0.7 to 0.8 hectares per MWp and yields up to 1.4 MWp per hectare.
Which areas are eligible for subsidies under the EEG?
Conversion areas, the roadside strips extending up to 500 meters along highways and double-track rail lines, areas in disadvantaged regions, impervious surfaces, landfills, parking lots, and rewet peatlands pursuant to Section 37(1)(2) of the Renewable Energy Act (EEG).
What does the 200-meter strip in the BauGB regulate?
Section 35(1)(8)(b) of the German Building Code (BauGB) grants preferential treatment to ground-mounted solar installations within the 200-meter strip along highways and double-track rail lines. In these areas, the installation is permitted without a separate zoning plan, which shortens the project development timeline by six to twelve months.
What will the surcharge amount be in 2026?
At the bidding session on March 1, 2026, the volume-weighted winning bid price was 4.94 ct/kWh, with a range of 3.99 to 5.10 ct/kWh. The maximum permissible value for the July 1, 2026, auction is 5.90 ct/kWh and is capped by law under Section 37b(1) of the Renewable Energy Sources Act (EEG).
How long does the approval process take?
A zoning plan process takes six to twelve months. Including preliminary planning, contract award, and utility connections, the total development period is expected to be two to four years. Fast-track projects save six to nine months.
Sources and Disclaimer
Federal Network Agency — Completed Tenders for Solar Power Plants, First Segment — Award Prices for 2025/2026, Bid Deadline March 1, 2026: 4.94 ct/kWh, Coverage Ratio 201.44 percent
Federal Network Agency — Bidding deadline: July 1, 2026 — Volume: 2,134,567 kW, maximum price: 5.90 ct/kWh
§ 37b EEG — Maximum rate for solar power plants in the first segment — statutory cap of no more than 5.9 ct/kWh
Section 37 of the EEG — Tenders for Solar Power Plants in the First Segment — Eligible Land Areas, Biodiversity Criteria
§ 35 of the German Building Code (BauGB) — Construction in Outlying Areas — Special Provisions Within the 200-Meter Strip
§ 7g of the Income Tax Act (EStG) — Investment Deductions and Special Depreciation — Investment Deduction (IAB) 50 percent, Special Depreciation (AfA) 40 percent
KfW — Renewable Energy Standard (270) — effective annual interest rate starting at 3.98 percent, up to 150 million euros, term of up to 30 years
Fraunhofer ISE — Study on Levelized Cost of Electricity for Renewable Energies, July 2024 — Capital Costs and Levelized Cost of Electricity for Ground-Mounted and Agri-PV Systems
Fraunhofer ISE — Current Facts About Photovoltaics in Germany — Specific Yield, Operating Costs
C.A.R.M.E.N. e.V. — Guide to Ground-Mounted Solar Power Plants — Space Requirements per MWp, Mounting Options
§ 9 FStrG — Structures Along Federal Highways — Paragraph 2c: Exception to the Prohibition on Installing Solar Panels
Federal Highway Authority — Procedures for the Installation or Modification of Photovoltaic Systems — Participation within 100 meters of Federal Highways and 40 meters of Federal Roads; Notification Requirement
Center of Excellence for Nature Conservation and the Energy Transition — Comparison of Land Efficiency — Ground-mounted solar power generates 28 to 50 times more energy per hectare than energy crops
Federal Environment Agency — Ground-Mounted Photovoltaic Systems — Recommendation to Reduce Biomass Cultivation in Favor of Ground-Mounted Photovoltaic Systems
pv magazine — Solar and Wind PPA Prices Continue to Fall in Europe, February 9, 2026 — Germany Solar PPA Q4 2025: 49.77 EUR/MWh
Solarserver — Photovoltaic Expansion in the First Half of 2026, July 14, 2026 — Expansion in H1 2026: Approximately 7.4 GW
Do you own unused land and want to lease or sell it long-term? With ground-mounted solar panels, you can turn idle or low-yield land into a predictable source of income!
Your benefits:
Long-term, predictable lease income or solar power revenue
If you lease the property, you remain the owner
No more management costs
Increase in the value of the property
Ecological enhancement
No soil sealing
Potential for dual use
Contribution to the energy transition
What types of land are suitable?
Generally suitable:
Farmland with low productivity (marginal soils)
Grassland with poor soil quality
Brownfield sites (former military, commercial, or industrial sites)
Areas along highways and railroad tracks (200-meter-wide strips)
Wasteland, gravel pits, landfills (after remediation)
Not suitable:
Nature reserves
Sites designated as historic landmarks
Areas with heavy shade
Areas in floodplains (without special measures)
For landowners:
DO YOU HAVE LARGE PARCELS OF LAND TO SELL OR LEASE?
FOR INVESTORS:
INDUSTRIAL SOLAR PARKS AS AN INVESTMENT
Are you interested in investing in large-scale solar projects? With our open-field model, you can invest in professionally developed solar parks ranging from 30 MWp to utility-scale projects exceeding 250 MWp. We manage the entire value chain—from project development, site acquisition, and permitting to EPC and long-term operations.
What you get:
Ready-to-build projects with guaranteed land availability
Full-scale project development: site analysis, permitting process, grid connection, financing structure
EPC Services (Engineering, Procurement, Construction): We build your turnkey facility to the highest quality standards
Long-term operation (O&M): 20–40 years of professional management, maintenance, insurance, and monitoring
Investment in inverters starting at €100,000 or acquisition of entire solar farms
Personal liability of the owner (sole proprietorship) – Contract with mediplan Helm e.K.
Financing assistance is available through our bank
Important Note: The information on this page is intended solely to provide general information about ground-mounted solar parks as an investment opportunity. It does not constitute investment, tax, or legal advice and is not a substitute for individual consultation with a licensed professional advisor. Return figures are based on empirical data and portfolio information from the Helm Group and are not a guarantee of future results. Tax planning options such as the investment deduction (IAB) under Section 7g of the German Income Tax Act (EStG) are subject to individual requirements—please consult your tax advisor regarding this matter. For your personal investment decision, please consult a licensed financial or tax advisor. All information is provided without warranty. As of April 2026.