Without solar energy, the market price for electricity would have been 15% higher on average last year, according to the research conducted by consulting firm Enervis on behalf of the German Solar Industry Association.

Solar systems reduce electricity bills of consumers, businesses and industry by several billion euros each year, the findings suggest, and the savings are only set to increase.

In light of the study, the association renewed its call on the government to maintain subsidies for solar installations, arguing that cuts to the funding would obstruct expansion.

Economy Minister Katherina Reiche is planning to cut state subsidies for new, small solar installations, arguing they are profitable for consumers on their own.

However, Chancellor Friedrich Merz’s conservative-led administration is yet to make a final decision.

German consumers who mount a solar installation on their roof and feed the generated electricity into the grid receive a fixed amount per kilowatt hour for 20 years.

dpa