Ground-Mounted Photovoltaics 2026: Planning, Approving, and Building a Solar Farm

Ground-mounted photovoltaic systems are driving Germany’s solar expansion: In the first half of 2026, ground-mounted systems accounted for just over half of all newly installed capacity. This page explains the costs and revenue generated per hectare by ground-mounted photovoltaic systems, which areas are suitable, what legal framework applies, and how a solar farm is developed—from site assessment to grid connection. All figures include their sources and dates.

Go directly to the topic that interests you: You own a plot of land · You want to invest · You represent a municipality

Ground-Mounted Solar Power in Numbers: What One Hectare Yields

Anyone interested in ground-mounted photovoltaic systems usually wants to know first whether the site or the project is financially viable. The calculation is straightforward. Fraunhofer ISE estimates the installation density of modern systems at around 1 MW per hectare, with module efficiencies of about 22 percent. According to the ISE study on levelized cost of electricity from July 2024, the investment costs for ground-mounted systems starting at 1 MWp range from 700 to 900 euros per kilowatt-peak.

When it comes to yield, Fraunhofer ISE distinguishes between two metrics. In the reference case (irradiance of 1,270 kWh per square meter of module area, performance ratio of 85 percent), approximately 1,080 full-load hours are physically available. According to the transmission system operators’ trend scenario for 2026, only 864 full-load hours are usable, with a continuing downward trend because systems are curtailed during periods of negative prices and grid congestion.

The award value is a target value used in the market premium model; it is not a guaranteed price. During hours when exchange prices are negative, the subsidy is not paid. Our article “Solar Park Return on Investment in 2026: How to Calculate from Hectares to IRR Step by Step” explains how to calculate the return on investment after accounting for operating costs, decommissioning reserves, and financing.

What is an open-field solar power plant?

In common usage, the terms “ground-mounted photovoltaic systems,” “ground-mounted PV,” “solar park,” and “ground-mounted solar plant” all refer to the same type of system; government agencies and technical documents often abbreviate “ground-mounted photovoltaic systems” as “PV-FFA.” Because there is no roof to dictate the orientation, the modules can be freely oriented toward the south or in an east-west direction. Open-field systems differ from related designs primarily in terms of cost and the subsidy process.

PV-FFA systems with a capacity of more than 1 MW are eligible for subsidies under the Renewable Energy Sources Act (EEG) only through a premium awarded in tenders issued by the Federal Network Agency. Our overview of photovoltaic systems shows which system type suits which profile; the page on agri-photovoltaics covers combined use with agriculture.

Which areas are suitable for ground-mounted solar panels?

For ground-mounted PV, the following applies: The size of the project determines how the fixed costs for planning, expert reports, zoning plans, and grid connection are distributed per kilowatt-peak. The grid connection determines whether a project can be connected economically at all: The closer a substation with available capacity is located, the shorter and less expensive the power line will be. The subsidy framework determines whether the site is eligible to participate in EEG tenders, and its protected status determines whether it can be approved at all.

According to the rule of thumb in the C.A.R.M.E.N. guidelines for ground-mounted solar power plants (as of March 2023), a plant in Bavaria requires an average of about 10 square meters per kilowatt-peak, or roughly 1 hectare per MWp. An area of five hectares can therefore accommodate a solar farm of about five MWp.

Landowners who want to lease their land rather than build on it themselves can find information on how lease rates are calculated on our page about leasing land for solar parks.

Legal Framework for Ground-Mounted Photovoltaic Systems

It is important to distinguish between the two corridors: The 200-meter strip under the BauGB pertains to permitting, while the 500-meter corridor under the EEG pertains to eligibility for subsidies. An area between 200 and 500 meters is eligible for subsidies but requires a zoning plan.

Highway Law: The Federal Highway Authority is involved

Section 9(2c) of the Federal Highway Act (FStrG) expressly exempts facilities for generating electricity from solar radiation from the prohibition on construction along federal highways. Nevertheless, the Federal Highway Authority or the highest state road construction authority must be consulted if the facility is to be constructed within 100 meters of a highway or within 40 meters of the outer edge of the paved roadway on a federal highway outside a built-up area. If the facility does not require a permit, the project developer must notify the authorities before construction begins.

Biodiversity: three out of five criteria

Since the introduction of Solar Package I, bids for ground-mounted systems under Section 37(1a) of the EEG must meet at least three of five criteria:

• The modules occupy no more than 60 percent of the project's floor area,
• a management approach that promotes biodiversity, such as mowing no more than twice a year with removal of the cut material or adapted grazing,
• Connectivity for animals: wildlife corridors for large mammals where the side lengths exceed 500 meters, and underpasses for smaller species,
• site-specific biotope elements covering at least 10 percent of the facility's area,
• Soil-conserving farming practices without the use of pesticides or fertilizers; cleaning agents are biodegradable and used only when necessary.

These criteria are prerequisites for the bid and must therefore be incorporated into the space and cost planning from the very beginning.

Building a Solar Farm: The Process

1. Site inspection — size, utility connections, access for heavy equipment, conservation status. In our experience, this takes one to four weeks.
2. Land Acquisition — Lease or Option Agreement with the Owner.
3. Urban Land-Use Planning — Resolution to Initiate Planning, Environmental and Species Protection Assessment, Public Participation, Resolution to Adopt the Plan. Within the designated 200-meter strip, the zoning plan does not apply.
4. Tender — Submit a bid to the Federal Network Agency on one of the three bidding dates: March 1, July 1, or December 1 (Section 28a(1) of the Renewable Energy Sources Act (EEG)), or alternatively, enter into a power purchase agreement.
5. Construction and Grid Connection — Mounting Structure, Modules, Inverters, Transfer Station, Cable Route.
6. Operations — technical and administrative management, landscaping, and monitoring for over 20 years.

Land-use planning, species conservation, and grid connection proceed in parallel and are mutually dependent. Those who submit their grid connection request only after the zoning plan is finalized lose time; those who complete species conservation mapping too late may, in some cases, lose an entire growing season. Based on our observations, municipalities with experience in solar park procedures are significantly faster than those drawing up their first zoning plan for an open-space solar facility.

Grid connection is the second critical path. Many suitable sites are located in rural areas, where grid capacity is often limited; the grid operator assesses whether its grid can accommodate the additional electricity. The grid connection request must therefore be the first step in any planning process. Smaller wind farms connect to the distribution system operator’s medium-voltage grid, while large projects connect to the high-voltage grid. An experienced project developer will reject sites for which he sees no realistic possibility of connection—this protects owners from contracts that remain inactive for years without a project.

How much does a solar farm cost?

The total investment includes modules, inverters, the mounting structure, civil engineering, grid connection, and planning. Two items are often omitted from many rough estimates. First, decommissioning: ISE operating costs explicitly exclude this, and regulatory authorities typically require a security deposit for it—usually a bank guarantee. Second, grid connection, which can account for a significant portion of the investment depending on the distance to the substation.

The levelized cost of electricity shows why ground-mounted solar farms are the most cost-effective form of solar power generation: Thanks to economies of scale, standardized support structures, and ground-level installation, their costs are lower than those of large rooftop PV systems and new fossil fuel power plants. You can find the complete profitability analysis—including operating costs, decommissioning, and IRR—in the article on solar farm returns.

Compensation: Tender or PPA

Ground-mounted systems with a capacity of more than 1 MW are subsidized through the Federal Network Agency’s tenders for solar power plants in the first segment. The bidder with the lowest bid is awarded the contract first; the bid amount becomes the applicable rate for 20 years.

The maximum value is capped

The maximum value is calculated based on the previous rounds in accordance with Section 37b(1) of the EEG, but may not exceed 5.9 cents per kilowatt-hour. A project proposal that assumes rising bid prices beyond this cap is inconsistent with the text of the law.

PPA as an Alternative

Instead of participating in the auction, the operator can sell the electricity through a Power Purchase Agreement (PPA). enervis’s PPA price tracker shows that a ten-year solar PPA with a “pay as produced” structure, including certificates of origin, ranges from 28 to 40 euros per megawatt-hour, based on calculations for August 2026. This is significantly below the winning bid price from the July round. Our article on the CfD requirement starting in 2027 explains the subsidy framework that will apply from that year onward; the guide to EEG remuneration in 2026 explains all remuneration rates.

Financing Ground-Mounted Solar Power Systems: KfW and Taxes

Solar parks fall under the “without rooftop PV” option; the more favorable rooftop option applies only to rooftop systems. KfW specifies a maximum rate for each price category; the actual interest rate depends on creditworthiness and collateral and is determined at the time of approval. The terms and conditions may change within a matter of days. The application is submitted through the borrower’s primary bank and must be filed before the project begins.

From a tax perspective, declining-balance depreciation is the most important tool. For movable assets acquired after June 30, 2025, and before January 1, 2028, Section 7(2) of the German Income Tax Act (EStG) allows for three times the straight-line depreciation rate, up to a maximum of 30 percent. With a useful life of 20 years, this amounts to 15 percent per year for plant equipment. The investment deduction and special depreciation under Section 7g of the German Income Tax Act (EStG), of up to 50 and 40 percent, respectively, are available only to businesses with profits of up to 200,000 euros and rarely play a role for typical project companies.

Logic Energy is not a financial or tax advisor. For tax classification, we will refer you to an independent advisor from our network of partners—this advisor, not us, will conduct the initial consultation.

Our article on photovoltaics and taxes explains how these tools can be combined in specific cases.

For Landowners: Lease Out Your Land Instead of Building Yourself

For the owner, three things matter: the amount of the lease payment, its security over the term of the lease, and the clauses that apply in the event of demolition, insolvency, or sale. These include indexation, a demolition guarantee, the registration of an easement in the land registry, and clear rules for renewal options. For tax purposes, the lease is classified as income from renting and leasing; the land may lose its agricultural status for inheritance tax purposes.

You can find the complete breakdown of the lease payment per hectare, the contract terms, and the tax pitfalls on our page “Leasing Land for a Solar Farm.” We’ll evaluate your land for free using the form at the bottom of this page.

For Investors: Returns and Ownership

The calculation chain starts with the hectare, moves through power output and yield to revenue, subtracts operating costs and the decommissioning reserve, and ends with the IRR. Our article on solar park returns uses various scenarios to illustrate how sensitive the result is to premium value, full-load hours, and the cost of capital. Our page on PV investments provides an overview of direct PV investments as an asset class.

Investments in ground-mounted solar projects are entrepreneurial investments that involve risks: bid and market price risk, curtailment, permitting and construction timeline risk, interest rate risk, and follow-on financing risk. The contracting party for Logic Energy is mediplan Helm e.K.; as a registered merchant, the owner is personally and fully liable in accordance with Sections 1, 17, and 19 of the German Commercial Code (HGB). Investments are possible starting at 100,000 euros.

Local Communities, Nature, and Acceptance

Under Section 29(1)(2)(a) of the Trade Tax Act (GewStG), nine-tenths of the trade tax for solar parks is calculated based on installed capacity and one-tenth based on wages—meaning the host municipality receives the majority of the tax, even if the operator is based elsewhere. Participation under Section 6(1)(2) and (3) of the Renewable Energy Sources Act (EEG) is voluntary. For a park that feeds 50 gigawatt-hours into the grid annually, this can amount to up to 100,000 euros per year.

Ground-mounted solar power plays a major role in the expansion of renewable energy and reduces greenhouse gas emissions from electricity generation. A comparison of land use also favors ground-mounted solar. According to an analysis cited by the Center of Excellence for Nature Conservation and the Energy Transition, one hectare of ground-mounted PV meets the annual electricity needs of about 230 households, while one hectare of corn grown for biogas meets the needs of seven.

A study by the industry association bne from March 2025 examined 30 solar parks in ten federal states and identified 385 plant species, 36 butterfly species, 30 grasshopper species, and 32 breeding bird species. According to the authors, the maintenance of the site was a decisive factor. However, there are valid objections to this: competition for land with food production, changes to the landscape, and habitat loss when sensitive biotopes are built over. For this reason, the EEG excludes drained peatlands and Natura 2000 sites in disadvantaged areas and mandates biodiversity criteria. In the zoning plan process, demonstrable ecological enhancement is often the argument that secures acceptance within the community. Our analysis of photovoltaic expansion in Germany provides context for how this expansion is developing overall.

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