Is Investing in Solar Power Worth It in 2026?

6–10%

Annual Return — Commercial PV Direct Investment (Portfolio Data for 2024)

over 122 GW

Installed PV capacity in Germany (BNetzA, April 2026)

31.12.2026

Grace period before the CfD requirement takes effect on July 17, 2027

A photovoltaic investment in commercial direct investments in solar power plants will yield 6–10% per annum in 2026 (Helm Group, 2024 portfolio data)—as a tangible asset with a 20-year EEG feed-in tariff guaranteed by law. 2026 is the final year of this fixed remuneration before the transition to the CfD system on July 17, 2027. Opportunities (predictable cash flow, tax leverage, inflation protection) and risks (illiquidity, falling market value of solar, partner risk) must be evaluated equally.

This guide is intended for investors, entrepreneurs, capital investors, and project developers who wish to invest in photovoltaics in 2026. It provides an overview of photovoltaic investments based on primary sources, current Federal Fiscal Court (BFH) case law, and an honest assessment of the risks involved—and compares them with ETFs, real estate, and fixed-term deposits as alternative investment options.

This issue is particularly relevant in 2026: It is the last year in which the full, 20-year guaranteed EEG feed-in tariff applies, before the CfD requirement takes effect on July 17, 2027—a clearly defined regulatory window for any investment in photovoltaics.

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What is a photovoltaic investment?

A photovoltaic investment is an investment in a solar power system, the returns on which come from the sale of solar power (feed-in tariffs or direct marketing) and from savings on electricity purchases. Photovoltaics convert sunlight directly into electricity—an investment in solar energy and thus in renewable energy, with remuneration fixed for 20 years under the Renewable Energy Act (EEG). Unlike a security, it is a tangible asset with a physical installation on a specific roof or open space that derives its income from the ongoing revenue generated by solar operations.

  • Feed-in tariff: a government-guaranteed payment for solar power fed into the grid; for new installations in 2026, the rate is fixed for 20 years.

  • Direct marketing: Sale of solar power on the spot market plus a market premium; legally required for systems of 100 kWp or more.

  • LCOE (levelized cost of electricity): Cost per kilowatt-hour generated over the system's lifetime — for ground-mounted PV, 4.1–6.9 ct/kWh, making it the most cost-effective form of generation (Fraunhofer ISE, July 2024).

  • kWp (kilowatt-peak): A measure of the installed capacity of a PV system under standard test conditions.

Solar power systems offer clear advantages—predictable returns, tangible assets, and tax benefits—but always require a careful assessment of their economic viability based on location, system size, and self-consumption.

A landscape with solar panels near a river and fields, under a vast sky with few clouds.

Photovoltaic Investment and Solar Investment: A Brief Overview‍ ‍

Those looking to enter the market on a broader scale will find a detailed breakdown of the different investment options in the guide “What Is a Direct Investment in Photovoltaics? ”; the page “Become a PV Investor in 2026” explains the specific steps involved in getting started. The next section explains how large the market will be in 2026 and why timing matters.

Why 2026, specifically? Market and time frame

2026 is a pivotal year for photovoltaic investments: It is the last year with a guaranteed 20-year fixed feed-in tariff under the EEG before two-sided contracts for difference (CfDs) become mandatory across Europe starting July 17, 2027. Those who go into operation by December 31, 2026, secure grandfathering under Section 100 of the EEG for the current feed-in tariff regime—a specific, time-limited window.

74.1 TWh

Solar Power Feed-in 2025 — PV Surpassed Lignite (SMARD/BNetzA)

4.94 cents per kWh

Ø Auction for spectrum, bidding deadline: March 1, 2026 (BNetzA)

573 h

Hours with negative electricity prices in 2025 — a record (SMARD/BNetzA)

Investment in Photovoltaics and Renewable Energy: Market Figures for 2026

By the end of April 2026, Germany had reached approximately 122 GW of installed PV capacity (Federal Network Agency) — spread across roughly 5.7 million systems. Net additions in 2025 totaled 16.4 GW; for the first time, ground-mounted systems contributed more (8.2 GW) than rooftop systems (7.8 GW). The EEG target for 2030 is 215 GW. The market is thus growing structurally — while at the same time, record feed-in volumes are depressing the market value of solar power.

Invest in solar power now — before the CfD requirement takes effect

Three sets of regulations are simultaneously reshaping the investment landscape: the Solar Peak Act (Section 51 / Section 51a of the EEG, in effect since February 25, 2025) makes battery storage a strategic decision; theEU CfD requirement effective July 17, 2027 (Regulation (EU) 2024/1747) changes the revenue model; and the 2027 EEG reform plans to phase out fixed feed-in tariffs for small-scale systems. Details: What the 2027 CfD requirement means for PV investors. Against this backdrop, the question arises as to what concrete opportunities a PV investment offers.

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Current status of the 2027 EEG reform (June 2026): A draft bill dated April 21, 2026, is available, but no cabinet decision has been made yet —the cabinet meeting has been postponed several times. The planned changes are therefore still in draft form and do not constitute applicable law. Current EEG rates and caps: EEG feed-in tariffs for 2026.

What opportunities does a solar investment offer?

Photovoltaic investments offer three structural advantages that traditional financial products do not combine: predictable income from 20 years of EEG feed-in tariffs, a tangible asset with inflation protection through fixed electricity prices, and tax benefits under Section 7g of the German Income Tax Act (EStG), which do not exist in the same form with ETFs, fixed-term deposits, or real estate and provide significant tax relief in the year of purchase. This opens up the possibility of reducing taxes while simultaneously building wealth in renewable energy with a clear conscience. Solar power is generated regardless of economic cycles and interest rate policy.

Photovoltaic Investment: Three Structural Advantages

Predictable revenue

20 years of legally guaranteed EEG feed-in tariffs — cash flows unaffected by market conditions or interest rate decisions.

Real asset

Modules, inverters, and mounting structures are physical assets—not a book value, but a facility built on actual land.

Tax Leverage § 7g of the Income Tax Act

The investment deduction, special depreciation, and declining-balance depreciation reduce the net investment amount—but only for business use.

Added to this is the favorable cost level: turnkey commercial and industrial systems recently ranged from around €900–1,600/kWp, while ground-mounted systems started at ~€700–900/kWp (Fraunhofer ISE average ~€1,015/kWp, as of July 2024). The combination of low costs, predictable revenue streams, and tax incentives opens up a return window that will narrow structurally with the transition to CfDs starting in 2027. But how does a PV investment compare to other asset classes?

Solar Power vs. ETFs vs. Real Estate vs. Fixed-Term Deposits — What's Realistic in 2026

Direct investments in private equity will generate real returns of 6–10% per annum in 2026 — overnight money market accounts yield around 1.8–3.0%, fixed-term deposits up to ~3.0%, 10-year German government bonds 2.6–2.9%, and net real estate rental income 3–5%. Only broadly diversified MSCI World ETFs have historically achieved similar returns (~7–8% nominal) — but without tax leverage, without real assets, and with significantly higher volatility. With 2.6% inflation (May 2026), overnight money remains close to zero in real terms.

How does a solar power system compare to ETFs and fixed-term deposits?

Comparison of Asset Classes (as of June 2026)
Asset classAnnual returnMinimum betPolicy leversVolatility
Overnight money1.8–3.0%starting at €1none (25% withholding tax)low
Fixed-term deposit (12 months)up to ~3.0%starting at €1,000nonelow
10-year U.S. Treasury bond2.6–2.9%Starting at €100nonelow
Property (net rent)3–5%starting at ~€150,000Depreciation, Maintenancemedium
MSCI World ETF~7–8% nominalStarting at €25/monthNo special depreciationhigh
Direct Investment in Solar Power (Commercial)6–10%starting at ~€50,000–100,000fully usablelow*
*20-year EEG-fixed rate; market price risk thereafter. Gross values before income tax, historical or market average — no guarantee of future returns. Sources: Helm Group portfolio data 2024 (PV) · Biallo/Verivox 06/2026 (daily/fixed-term deposits) · German Federal Finance Agency (federal bonds) · Destatis (inflation). Not investment advice.

Photovoltaics differs structurally from all other asset classes: the feed-in tariff is fixed for 20 years, the investment tax credit reduces the net investment, and the system is a tangible asset. Those who do not wish to invest directly can find more liquid—but lower-yielding—alternatives in solar funds and solar ETFs. The complete comparison of asset classes (money market accounts, time deposits, ETFs, real estate) is covered in the guide Photovoltaics as an Investment. Three return scenarios based on system size : Solar System Returns 2026. Which investment typeis bestdepends on the system type—rooftop, ground-mounted, or agri-PV.

Roof-mounted system, open-field system, or agri-PV?

Investors in photovoltaics can choose between three types of systems: rooftop PV on commercial properties yields a return of 6–10% per year through self-consumption; ground-mounted solar farms yield 5–8% per year at lower costs; and agri-PV combines agriculture with electricity production, including the EEG innovation bonus. The best option depends on the target size, location, self-consumption, access to land, and tax structure.

Roof-mounted systems (commercial)

  • ~€900–1,600/kWp, turnkey
  • Self-consumption saves 25–42 cents per kWh — nearly five times as much as feeding electricity into the grid
  • Payback period: 5–9 years · Return: 6–10% per year

Open space (solar farm)

  • Starting at ~€700–900 per kWp, scalable to the megawatt range
  • LCOE 4.1–6.9 ct/kWh — the most cost-effective generation
  • Return of 5–8% per year · with storage, up to 29% IRR

Agri-PV

  • Dual use: crops and electricity on a single plot
  • EEG Innovation Bonus +0.5 ct/kWh (2026)
  • Tender volume for 2026: 1,200 MW

The key factor driving returns for rooftop systems is not the feed-in tariff, but the electricity saved from the grid: Those who pay 35 cents/kWh to the utility and generate solar power themselves for 5–7 cents/kWh save about 30 cents per kilowatt-hour—particularly worthwhile for businesses and operators with high electricity needs and large roof areas. In contrast, ground-mounted systems score points for economies of scale and scalability. Agri-PV, on the other hand, combines agriculture with photovoltaic systems on the same plot of land.

Technical design for MW-scale systems: ground-mounted solar farm.

The Storage Effect in Detail: PV with Battery Storage. Regardless of the type of system, the next question is how to structure the investment appropriately.

Photovoltaic Investment, Funds, or Crowdinvesting?

The German market for solar investments features several structures—ranging from crowdfunding platforms to solar funds, solar equity funds, and sustainable impact funds, all the way to direct solar investments in one’s own system. Four of these are key for investors: crowd investing (starting at €50, subordinated loans with risk of total loss), closed-end solar funds (starting at €5,000–25,000, BaFin-regulated), solar ETFs (liquid but volatile and without underlying assets), and direct investment in one’s own plant (highest returns and full tax leverage, but requires a personally liable partner). The more direct the investment, the higher the return and tax benefit—and the lower the liquidity. Solar investments thus range from small crowd-funding shares to large-scale direct investments in one’s own photovoltaic systems. Crowd investing allows for investment in solar projects starting at just a few hundred euros, usually via subordinated loans with the risk of total loss.

A Comparison of Photovoltaic Investment Models

Solar panels in the foreground, farm buildings and silos in the background, in a rural setting.
Comparing Investment Models — Getting Started, Returns, and Tax Leverage
ModelGetting StartedAnnual returnReal assetIAB / Special Depreciation
Crowdfundingfrom €50 to €5005–9%nounavailable
Closed-end solar fundfrom €5,000 to €25,0004–7%indirectlylimited
Solar ETFStarting at €25/monthmarket-dependentnono
Direct Investment in Solar Powerstarting at ~€50,000–100,0006–10%yes (physically)fully usable
Gross figures before income tax; historical or market-standard returns—no guarantee of future returns. Tax benefits require business or self-employment income. Source: Helm Group, based on publicly available market data. This is not investment advice.

Crowdfunding, solar funds, and impact funds

Indirect investment vehicles such as crowd investing, solar funds, solar equity funds, and sustainable impact funds offer low barriers to entry and liquidity, but provide less tax leverage and lower returns.

Investing in your own facility

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With direct investment, the investor becomes the owner of a specific asset; with a solar fund, a fund manager pools the capital of many investors into a portfolio, and the investor holds only shares. The full comparison, including all pros and cons, is covered in the cluster articles “Differences Between Direct Investment, Funds, and Crowd Investing ” and “PV Crowd Investing vs. Direct Investment.” For those who want to take the direct route: Become a PV investor in 2026. As varied as the models are, it is crucial to take an honest look at the risks.

What risks do investors need to consider?

A photovoltaic investment is a business-related fixed asset with a 20–40-year lifespan. Every investor needs to be aware of three risks: illiquidity (no regulated secondary market—selling through a specialized marketplace like Milk the Sun takes months), the erosion of solar market value (annual market value in 2025 = 4.51 ct/kWh, capture factor fallen to 0.505, 573 negative price hours), and the partner risk over two decades. Added to this are tax and regulatory pitfalls.

  • Illiquidity: no organized secondary market—a sale takes months.

  • Market value erosion: The annual market value of solar power has fallen to 4.51 ct/kWh by 2025 (capture factor 0.505).

  • Counterparty risk: the counterparty must remain financially sound for 20–40 years.

Milk the Sun and the Secondary Market: Why PV Investments Are Illiquid

A solar investment is not a tradable security—selling it through a marketplace like Milk the Sun takes months, not days. Investors should be prepared to commit to a 10–15-year time horizon and should not treat the capital as a liquid reserve.

The seriousness of the market value risk was demonstrated on May 1, 2026: The day-ahead price fell to −499.99 €/MWh at noon—the lowest level ever traded in Germany. Since the Solar Peak Act took effect, new installations no longer receive EEG feed-in tariffs during negative-price hours; the lost quarter-hours are compensated only at the end of the term under Section 51a of the EEG. After the 20-year subsidy period expires, operators bear the full market price risk. Battery storage converts this risk into an arbitrage opportunity. More: Negative electricity prices and the Solar Peak Act.

Also relevant from a tax perspective is the Federal Fiscal Court (BFH) ruling V R 32/24 (published March 19, 2026): Partial sales of solar parks are only exempt from value-added tax (sale of a business as a whole, Section 1(1a) of the German Value-Added Tax Act) if the purchaser also assumes responsibility for grid connection and feed-in—otherwise, 19% VAT applies. For initial purchasers who hold the asset until the end of its term, the ruling is irrelevant; it becomes decisive in the case of subsequent partial sales and restructurings.

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Significant Risks — Magnitude and Mitigation

Key Risks of a PV Investment — and How to Mitigate Them
RiskOrder of magnitudeMitigationSource
IlliquidityThe sale process takes monthsPlan for a time horizon of 10–15 years; do not treat the capital as a reserveMilk the Sun
Market Value of Solar / Capture Factor573 h negative 2025 · Factor 0.505Battery storage, Section 51a credit, PPASMARD · Network Transparency
Module degradation~0.2–0.5% per year · 10–15% over 25 yearsManufacturer's Performance Warranty, N-Type ModulesFraunhofer ISE
VAT on partial sales19% if the structure is incorrectGrid connection + power feed-in transmitted correctlyBFH V R 32/24
IAB Refundretroactive + 1.8% interest per annumInvestment within 3 years, for business use§ 7g(2) · § 238 AO
Partner risk (ages 20–40)average over the termCheck creditworthiness; sole proprietor is personally liable vs. LLCSections 1, 17, and 19 of the German Commercial Code (HGB)
Assess individual risks on a case-by-case basis with a tax advisor and investment expert. Case BFH III R 39/25 is currently pending regarding the scope of the IAB for self-consumption systems. This is not investment advice. As of June 2026.

Which tax incentive is effective?

Tax incentives are one of the main reasons why a direct investment in solar PV is more profitable than a fixed-term deposit or an ETF. These incentives work in three stages: an investment deduction (IAB, Section 7g(1) of the German Income Tax Act) prior to purchase, a special depreciation allowance in the year the system is commissioned, and declining-balance or straight-line depreciation over the system’s lifespan. Combined, this significantly reduces the net investment amount—provided there is commercial or freelance income.

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Declining-balance depreciation is once again applicable for purchases made between July 1, 2025, and December 31, 2027, under the Immediate Investment Tax Program (“Investment Booster,” Federal Law Gazette I 2025 No. 161). Which rate applies and at what level depends on the size of the system, legal form, marginal tax rate, and self-consumption ratio—the complete calculation logic, including maximum limits, time windows, and example scenarios, is covered in the detailed article “Saving on Photovoltaic Taxes in 2026: IAB, Special Depreciation, and Declining Balance Depreciation.” In any case, the individual calculation should be handled by a tax advisor. Whether an investment pays off in the end also depends on the quality of the partner.

Why quality trumps the lowest price

Anyone comparing offers will find a wide range of prices—from low-cost options (crowdinvesting starting at €50, open-space offers starting at €450/kWp) to premium turnkey solutions. The lower entry price comes at a cost: fragmented responsibility across multiple service providers, long-term lease agreements with third parties spanning decades, and limited liability through limited liability company (GmbH) project vehicles. If one link in the chain fails, the investor bears the residual risk.

Everything under one roof

Site acquisition, permitting, grid connection, construction (Logic Glas GmbH), operation, and billing all handled by a single team—with a single point of contact throughout the project.

Personal liability of the owner

The contracting party, mediplan Helm e.K., has unlimited liability under Sections 1, 17, and 19 of the German Commercial Code (HGB)—unlike a standard limited liability company (GmbH) established solely for project purposes.

40 years of experience

The Helm Group has been in business since 1982 and supports PV projects from acquisition through to operation throughout their entire lifespan.

As a brand of Logic Glas GmbH, Logic Energy deliberately positions itself in the premium quality segment: a company that combines proven technologies—such as N-type modules and battery storage—with the reliability of an established firm. For investors with a two-decade time horizon, this structural advantage—personal liability plus deep integration—is often worth more than a one-time price advantage at the outset.

Photovoltaic Investment 2026 — Schedule an Initial Consultation

In a 30-minute, no-obligation consultation, we’ll determine whether a solar investment aligns with your tax situation and investment goals—and which type of investment makes the most financial sense.

Please provide current figures on profits and investment goals—this will allow us to reliably quantify the §7g leverage.

Request an initial consultation How to Become a Solar Investor

FAQ

  • Yes, for investors with a long-term horizon: Direct investments in commercial PV generate returns of 6–10% per year (Helm Group, portfolio data for 2024), with 20 years of fixed EEG feed-in tariffs and tax benefits under Section 7g of the German Income Tax Act (EStG). 2026 is the last year of this fixed remuneration before the CfD requirement takes effect. Return figures are historical and not guaranteed.

  • Crowdinvesting starts at €50, while solar funds start at €5,000–25,000. A direct investment in your own PV system makes sense with around €50,000–100,000 in equity. Multiple shares can be combined into a geographically diversified portfolio.

  • Commercial rooftop solar: 6–10% per year; ground-mounted solar farms: 5–8% per year; figures are gross, before income tax (Helm Group, portfolio data for 2024). With battery storage, the IRR increases by up to 29%. These figures are historical and do not constitute a guarantee of future returns.

  • 2026 is the last year with a guaranteed 20-year fixed feed-in tariff under the EEG. Starting July 17, 2027, bilateral contracts for difference (CfDs) will become mandatory throughout the EU. Anyone who begins operations by December 31, 2026, is guaranteed grandfathering under the current regime pursuant to Section 100 of the EEG.

  • Illiquidity (no regulated secondary market), the decline in solar market value (573 hours of negative pricing in 2025), and partner risk over a 20–40-year period. Added to this are tax pitfalls such as VAT on partial sales of solar parks (BFH V R 32/24). All risks are calculable but must be factored into the planning.

  • For business use, the investment deduction, special depreciation, and declining-balance depreciation can be combined—this significantly reduces the net investment. The tax guide covers the exact limits and provides calculation examples; a tax advisor should verify whether these apply to your specific situation.

  • After 20 years, the owner bears the market risk associated with electricity prices. Mitigation strategies include long-term PPAs, battery storage (arbitrage), and geographic diversification. An extension option can extend the term to up to 40 years.

Photovoltaic Investment 2026 — A Balance of Opportunities and Risks

In 2026, a photovoltaic investment will be one of the highest-yielding real-asset investments in the renewable energy sector—offering 6–10% per annum, multi-tiered tax leverage, and a regulatory window extending through the end of 2026. An investment in modern photovoltaic systems combines real assets, predictable returns, and tax benefits in a single product. This comes with real risks: illiquidity, a structural decline in the market value of solar energy, and a partner risk spanning two decades. Those who weigh both sides, have a long-term horizon, and rely on a solid, reliable partner will find here a predictable, real-asset-based alternative to ETFs, fixed-income deposits, and real estate.

Next steps:

In-depth information on photovoltaic investments

Getting Started and Models:

Regulation and the Market:

Types of investments:

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Request a no-obligation initial consultation now

A man in a white shirt and hard hat is standing in front of solar panels in an open field, holding a black briefcase.

The information on this page is for general informational purposes only and does not constitute investment, tax, or legal advice. The yield figures are based on sample calculations from actual projects undertaken by the Helm Group (portfolio data for 2024) and do not guarantee future results. Feed-in tariff rates, maximum tender values, tax regulations, and regulatory frameworks are subject to change—particularly due to the CfD regime effective July 17, 2027, and the ongoing EEG reform process post-2026. Information regarding the 2027 EEG reform is based on a draft bill (as of April 21, 2026) and does not constitute enacted law. Case BFH III R 39/25 is pending regarding the IAB scope. Every investment decision should be reviewed individually with a tax advisor and an independent investment expert. All information is provided without warranty. As of June 2026.

The Logic Energy investor model is a direct ownership of a PV system with a share in inverter revenue or a system purchase—it is not an investment within the meaning of the German Investment Act (VermAnlG), not a financial investment within the meaning of the German Securities Trading Act (WpHG), and does not constitute investment advice under the WpHG. Contractual partner: mediplan Helm e.K., with personal liability of the owner pursuant to Sections 1–6, 17, 19 of the German Commercial Code (HGB).

Sources and Legal Basis

This information is based on primary sources from government agencies and specialized media; links to the original websites are provided.

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