Is photovoltaics worthwhile in 2024 or not? We explore this question with many practical examples and calculations. The underlying data is from September 2024.
Table of contents
First things first
Photovoltaic return lie?
The statement "Photovoltaics is a return lie" is based on false assumptions. The Fraunhofer Institute also confirms that PV is worthwhile.
Photovoltaics not worth it?
The statement "Photovoltaics is not worth it" is factually incorrect. A PV system is worthwhile if the purchase price is less than €1,800 per installed kWp.
From how many kWh is it worthwhile?
PV systems up to 10 kWh are always worthwhile - according to the North Rhine-Westphalia Consumer Advice Center. But larger systems can also make sense.
PV storage is not worth it?
A photovoltaic storage system is also worthwhile for private households if it is dimensioned correctly. The prices for storage are falling, while electricity costs are rising.
Is photovoltaics worthwhile in 2024?
Photovoltaics are worthwhile if the purchase price of a PV system is less than €1,800 per installed kWp. The following applies: the more solar power you use yourself, the more economical the PV system is.
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A practical example:
Let's assume an average single-family home with an annual electricity consumption of 5,000 kWh. A photovoltaic system with 6 kWp is suitable for this. Around 30% of the solar power is used by the home itself. The remaining 70% is fed into the public power grid in return for a feed-in tariff of currently 8.03 cents per kWh. According to forecasts, the price of electricity will rise by around 4% annually. In 2044, the price will then be between €0.65 and €0.75/kWh.
| variable | Without PV system | With PV system |
|---|---|---|
| annual electricity consumption | 5,000 kWh | 5,000 kWh |
| nominal power of the PV system | - | 6 kWp |
| annual electricity generation | - | 6,000 kWh |
| acquisition costs of PV systems | - | 7.500 € |
| operating costs of PV systems | - | 7.500 € |
| electricity price | 30 cents/kWh (+41% annually) | 30 cents/kWh (+41% annually) |
| grid feed-in | - | 70% |
| feed-in tariff | - | 8.03 cents/kWh |
| self-consumption | - | 30% |
| electricity costs, electricity providers | 52,078 € in 20 years | 33,330 € in 20 years |
| feed-in tariff | - | 6,745 € in 20 years |
| Total costs | 52.078 € | 41.585 € |
| cost savings | - | 10.493 € |
With acquisition costs of €1,200 to €1,300 per kWp, a 6 kWp PV system costs around €7,500. Over a period of 20 years, electricity costs of almost €10,500 can be saved in this way. With a service life of over 30 years, a photovoltaic system will save you several thousand euros in the long term. This is primarily due to the low electricity generation costs of photovoltaics, which means that the costs of a PV system pay for themselves after seven to nine years.
Levelized costs of electricity are the total costs of generating one unit of electrical energy, including all investment, operating, maintenance and fuel costs as well as costs for environmental regulations. They vary depending on the energy source and technology.
According to the Fraunhofer ISE, the electricity generation costs of PV systems are between 3.12 and 11.01 cents per kWh. This makes photovoltaics the cheapest energy source next to wind.
Due to the years of falling costs of photovoltaics It is expected that the electricity generation costs of PV systems will decrease in the future.
Is photovoltaics with electricity storage worthwhile?
A photovoltaic system with storage is worthwhile if the purchase costs are less than €2,700 per kWp. The investment costs are almost twice as high, but with a storage system, the self-consumption of solar power can be increased to up to €70%. This means you have to buy significantly less expensive electricity from the grid.
The following example illustrates the profitability of the combination of photovoltaics and electricity storage.
An average single-family home consumes 5,000 kWh of electricity per year. A 6 kWp PV system covers the house's electricity needs. With an electricity storage system, around 70% of the solar power is used for self-consumption. Only 30% is fed into the grid, for which a feed-in tariff of 8.03 cents per kWh is paid. According to forecasts, the price of electricity will be around €0.70 per kWh by 2044.
| variable | Without PV system | With PV system & storage |
|---|---|---|
| annual electricity consumption | 5,000 kWh | 5,000 kWh |
| nominal power of the PV system | - | 6 kWp |
| annual electricity generation | - | 6,000 kWh |
| storage capacity | - | 6 kWh |
| acquisition costs of PV system & storage | - | 11.000 € |
| operating costs of PV systems | - | 8.000 € |
| electricity price | 30 cents/kWh (+41% annually) | 30 cents/kWh (+41% annually) |
| grid feed-in | - | 40% |
| feed-in tariff | - | 8.03 cents/kWh |
| self-consumption | - | 60% |
| electricity costs, electricity providers | 52,078 € in 20 years | 13,007 € in 20 years |
| feed-in tariff | - | 3,984 € in 20 years |
| Total costs | 52.078 € | 28.023 € |
| cost savings | - | 24.055 € |
A 6 kWp PV system costs €7,500 with acquisition costs of €1,250 per kWp. The average cost for a 6 kWh PV storage system is €500 per kWh of storage capacity. In this case, that is €3,000. In 20 years, you will save over €24,000. Even further savings are possible in the long term.
When is a photovoltaic system not worthwhile?
Photovoltaics are not worthwhile if the price per kWp is over €2,000. In this case, the electricity generation costs are too high and affect the profitability of the PV system.
Is photovoltaics worthwhile with self-consumption or full feed-in?
The general rule for photovoltaics is: the higher the self-consumption, the more economical the PV system. Let's look at another example:
PV system with self-consumption
We compare the same PV system with a nominal output of 4 kWp - once with and once without storage.
| variable | Without PV system | PV system without storage | PV system with storage |
|---|---|---|---|
| annual electricity consumption | 4,000 kWh | 4,000 kWh | 4,000 kWh |
| nominal power of the PV system | - | 4 kWp | 4 kWp |
| annual electricity generation | - | 4,000 kWh | 4,000 kWh |
| acquisition costs | - | 6.300 € | 8.750 € |
| operating costs for 20 years | - | 6.000 € | 6.500 € |
| grid connection | 100% | 70% | 30% |
| electricity price | 30 cents/kWh (+41% annually) | ||
| grid feed-in | - | 70% | 30% |
| feed-in tariff | - | 8.03 cents/kWh | |
| self-consumption | - | 30% | 70% |
| electricity costs, electricity providers | 41,663 € in 20 years | 29,164 € in 20 years | 12.499 € |
| feed-in tariff | - | 4,497 € in 20 years | 1,927 € in 20 years |
| electricity costs, total | 41.663 € | 36.967 € | 25.822 € |
| cost savings | - | 4.696 € | 15.841 € |
And what happens if you feed all the electricity into the grid?
PV system with full feed-in
Due to the low feed-in tariff and high electricity prices, full feed-in is only worthwhile if there are no other options for self-consumption. Since the price of electricity is much higher than the feed-in tariff, it is impossible to make a profit with full feed-in. With a feed-in tariff of 12.73 cents per kWh for full feed-in, this option is not as attractive as self-consumption.
| variable | without a PV system | 4 kWp PV system | 10 kWp PV system |
|---|---|---|---|
| annual electricity consumption | 4,000 kWh | 4,000 kWh | 10,000 kWh |
| nominal power of the PV system | - | 4 kWp | 10 kWp |
| annual electricity generation | - | 4,000 kWh | 10,000 kWh |
| acquisition costs | - | 6.300 € | 10.500 € |
| operating costs for 20 years | - | 6.000 € | 8.000 € |
| grid connection | 100% | 100% | 100% |
| electricity price | 30 cents/kWh | 30 cents/kWh | 30 cents/kWh |
| grid feed-in | - | 100% | 100% |
| feed-in tariff | - | 12.73 cents/kWh | 12.73 cents/kWh |
| self-consumption | - | 0% | 0% |
| electricity costs, electricity providers | 41,663 € in 20 years | 41,663 € in 20 years | 41,663 € in 20 years |
| feed-in tariff | - | 10.184 € | 25.460 € |
| electricity costs, total | 41.663 € | 43.779 € | 34.703 € |
| cost savings | - | -2.116 € | 6.960 € |
The 4 kWp system covers the purchase costs, but if you take the operating costs into account, savings of €10,184 are not worth it. However, things are a little different with a 10 kWp system. Here, a profit of €6,960 can be achieved over a period of 20 years.
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Photovoltaic yield lie - that's what the Fraunhofer Institute ISE says
The Fraunhofer Institute is also in his analysis The conclusion is that photovoltaics is worthwhile and can generate high returns.
"Due to the sharp drop in prices for PV modules, attractive returns are possible. The Solar Cluster Baden-Württemberg has estimated returns of up to 50% for small systems without battery storage and with a self-consumption share of around 25%."
This will also apply to 2024, as prices for solar modules, inverters and power storage continue to fall while electricity prices rise.
Which factors influence the return on a PV system?
The return on your photovoltaic system is influenced by various factors:
- High self-consumption: A high self-consumption rate is crucial for a high return. It is more economical to use the electricity generated yourself instead of feeding it into the grid for just under 8 cents per kWh. The PV system can be worthwhile even with a self-consumption rate of 20 to 30%.
- acquisition costs: The lower the cost per kWh of power, the better the return. Compare offers from several installers to find the best prices. Read here how you can find a qualified specialist company for photovoltaic systems.
- size of the PV system: Larger systems are often more cost-efficient. A 10 kW photovoltaic system costs around €1,200 per kW as a complete package including installation, while a 4 kW system often costs over €1,400 per kW. Stiftung Warentest and the North Rhine-Westphalia Consumer Advice Center recommend covering the available roof area entirely with solar modules in order to reduce the cost per kW.
- roof orientation: The ideal roof orientation is southwest to southeast with a roof pitch of 30 to 40 degrees. However, thanks to modern technology, north-facing PV systems are also achieving increasingly better yields.
- battery storage: An energy storage system makes it possible to store excess solar power and use it later, which increases self-consumption. The storage system should not be oversized; a good guideline is a storage capacity of 1 kWh per 1,000 kWh of annual consumption.
The list refers to small photovoltaic systems for homeowners. Different rules apply to commercial systems.
What subsidies are available for photovoltaics in 2024?
To make photovoltaics worthwhile, the federal government has created several funding programs. On the one hand, due to the zero tax rate, since the beginning of 2023 you have to pay a sales tax of 0.1 trillion when purchasing a PV system, accessories and installation. To simplify the purchase of a PV system, the Kreditanstalt für Wiederaufbau (KfW) loan 270 is also available. You also receive a feed-in tariff for the solar power you generate yourself that goes into the public grid.
KfW loan 270
KfW offers the low-interest KfW loan 270 to finance PV systems. This loan is available to both private individuals and companies and can cover installation costs of up to 150 million euros. The interest rate starts at 5.21%.
feed-in tariff
The last changes to the feed-in tariff came into force on August 1, 2024 and are valid until the end of January 2025. The tariff rates are as follows:
- Full feed-in up to 10 kWp: 12.73 cents per kWh
- Surplus feed-in up to 10 kWp: 8.03 cents per kWh
- Full feed-in 10 to 40 kWp: 10.68 cents per kWh
- Surplus feed-in 10 to 40 kWp: 6.95 cents per kWh
Photovoltaics yes or no?
Yes, photovoltaics are worthwhile. The higher the self-consumption, the more worthwhile the solar system is. Because while electricity prices are rising, the feed-in tariffs are falling. But the purchase costs for photovoltaics, power storage and inverters are also falling enormously. All of these factors mean that photovoltaics are more worthwhile than ever.
