Berlin is a Pioneer for a New Market for Urban Solar Energy

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(Bloomberg) — Berlin-based condom producer Einhorn has promoted its mission to protect the environment with products like its vegan, fair-trade rubbers. Now, it’s taking that ambition out of the bedroom and onto the balcony.

In a fundraising video for the company’s solar panels — modules roughly the size of a beach blanket that can be draped like a towel over a railing — bare-chested co-founder Waldemar Zeiler touts the devices, and declares his goal to sell enough to replace a coal-fired power plant.

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But with a planned retail price of 550 euros each, that could be a challenge.

Thanks to the flood of cheap Chinese modules on the European market following the US import ban, the cost of individual solar modules has fallen to an average of 300 euros. Cheap balcony panels are now trendy in Germany. According to the national energy regulator, more than 360,000 have been registered since 2023, with Berlin being a hotspot.

That’s good news for Europe’s largest economy, which is still struggling to replace natural gas supplies that were disrupted after Russia invaded Ukraine. Germany added 14 gigawatts of solar capacity last year, more than any other country in the region.

Porch installations represent just 150 megawatts, or one percent, of additional capacity, but they also signal an important shift. Solar energy, once the domain of anyone with a roof or sprawling fields, is now available to many more urban consumers.

“For the first time, solar energy is affecting city dwellers and not just rural areas,” said Christoph Kost, head of energy systems at Fraunhofer ISE, an industrial research group in Freiburg, Germany. “The trend is particularly strong in Germany, as the country still has high electricity prices.”

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It was less energy prices than climate awareness and curiosity that made Stefan Martin, a 53-year-old father and homeowner in Berlin, an early adopter. His multi-story home has nearly 100 owners and it would have been “infinitely complicated” to convince them all to install a solar system on the roof.

This is one of the reasons why the number of rooftop systems in Germany is lagging, as the country needs to almost triple its solar power to achieve its 2030 climate goals. In order to speed up the process, Parliament passed a package last week that also targets balcony solar: such modules can now reach up to 800 watts and can be registered more easily. It is also becoming increasingly difficult for landlords to raise objections to the installations.

After seeing a neighbor installing a balcony panel, Martin additionally installed three modules totaling 500 watts from PluginEnergy GmbH, a German startup. “I had to negotiate with my wife because we had to remove some flower pots,” Martin said. “We hid the cables in bamboo and now it looks pretty decent.”

Martin ordered his solar module in April 2023 for 820 euros and thus missed the drop in unit prices. Still, he estimates that the system covers about 10% of his electricity usage, including his refrigerator, his standby devices and the two computers that he and his wife use to work remotely. “We saved around 115 euros on our electricity bill in the first year,” says Martin, “that means the panels will have paid for themselves in seven to eight years.”

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The city of Berlin has launched a generous grant to encourage people to use solar energy. It offers up to €500 for a single plug-and-go module. According to the relevant authority, almost 10,000 people applied for the funding and two thirds were approved.

“The program is in high demand among all target groups,” said a city spokesman.

Still, it will take a while for demand to compensate for excess supply. The US banned imports of Chinese solar panels in 2022 on the grounds that some may have been made using Uyghur forced labor, and even after balcony solar panels went viral online, Europe still has more panels than it can handle.

Discounters and hardware stores have started stocking them, and energy suppliers are also following suit. The Swedish Vattenfall AB sold 450 balcony power plants last year and Gasag AG, the Berlin natural gas supplier, sees “a lot of potential” in its new business with the sale of solar panels.

China’s near-total dominance of the solar panel supply chain has been difficult for suppliers like Einhorn, the condom-to-solar converter. Zeiler, the co-founder, had to scale back his goal of raising 2.5 million euros and is now only aiming for a tenth of that amount.

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This week, the German photovoltaic manufacturer Solarwatt GmbH announced that it will cease operations at its Dresden site at the end of August until further notice. And last month, Swiss module manufacturer Meyer Burger Technology AG closed its nearby module production factory with around 500 employees.

Since August, 12 European photovoltaic manufacturers have filed for bankruptcy or debt restructuring, laid off employees, or halted or relocated production, amid a flood of cheap Chinese modules, according to SolarPower Europe.

Recent solar reforms may not make a difference. Despite promises to help local producers, the package excluded such support, which is why the German Renewable Energy Association (BEE) called for another reform.

Additionally, says Markus Meyer, director of regulatory affairs at Berlin solar installer Enpal BV, the bill allows old meters to be reset, which happens when unused excess solar power is fed back into the grid. This quirk, he said, could “actually delay the energy transition.”

There’s also a more practical aspect: According to Fraunhofer ISE, almost no solar buyers opt for battery storage because these packages are often more expensive than panels. This means that although the balcony systems run smoothly during times of peak solar radiation – i.e. when energy is cheapest – users still have to access the power grid after sunset, when prices rise.

Despite these challenges, BEE President Simone Peter sees enormous potential in the current trend: “The regulations on balcony solar systems are real participation boosters.” They emphasize once again what the energy transition was from the beginning: a project for everyone.”

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