Germany’s Renewables Hit 56% in 2025, Experts Warn of Rising Risks and Policy Uncertainty

Researchers warn that slowing renewable growth and ambiguous policies could jeopardize Germany's climate goals and increase future energy costs, even in spite of record solar expansion.

According to preliminary data from research institute ZSW and energy industry group BDEW, approximately 56% of Germany's gross electricity consumption in 2025 came from renewable energy sources. The share of renewable energy increased by 0.7 percentage points over the prior year due to an increase in installed solar power capacity, despite a "historically weak" first quarter for wind power production and a notable decline in hydropower output.

With the help of more than 17 GW of new capacity, solar power output increased by 18.7% for the year. The least windy March since 1950 caused a 5.2% decrease in wind power early in the year; however, the reduction was mostly mitigated by stronger winds in Q2 and Q3. Onshore wind increases from 3.3 GW in 2024 to 5.2 GW. Due to lower precipitation, hydropower production decreased by 24.1%, accounting for only 3.2% of total renewable energy.

The energy transformation is the cornerstone of our economy's flexibility and resilience, according to Kerstin Andreae, head of BDEW. Therefore, Germany has to continue developing renewable energy sources. However, she emphasized that a capacity market and gas-fired power plant auctions were desperately needed to support sporadic renewable energy output.

According to Frithjof Staiß, head of research institute ZSW, the strength of the sector was demonstrated by the sustained expansion of renewable power sources despite a challenging economic situation. However, Staiß cautioned that there is increasing ambiguity over future legislation. In order to expedite the nation's green hydrogen initiatives, he encouraged the government to clarify the support structure for certain technologies.

Researchers from the government-sponsored Ariadne project cautioned against halting the quick growth of renewable energy. They claimed that doing so would put climate goals in jeopardy, increase dependency on gas plants and electrical imports, and hike power prices. The researchers emphasized that even while a government assessment indicated that power demand could increase more slowly than anticipated, this should not be used as an excuse to cut back on support for wind and solar.

According to their modeling, customers' overall system expenses would increase even though the state would save money up front. They recommended policymakers expedite flexible technology like EVs, heat pumps, and batteries, which may reduce system costs and help emissions reduction when combined with renewable energy sources, rather than extending the usage of fossil fuels.