Hundreds of billions of euros in climate damage saved by German solar power

Germany's solar power sector has played a significant role in reducing both fossil fuel imports and climate-related damages over recent years, according to calculations by the German Solar Industry Association (BSW-Solar). Between 2020 and 2025, approximately 20 billion euros worth of fossil fuel imports were replaced by solar energy production, while up to 250 billion euros in potential climate damage costs were avoided. These figures come from data provided by the Federal Environment Agency (UBA).

According to the UBA, nearly 390 billion kilowatt-hours of solar electricity were generated during this period. This amount displaced primarily natural gas and hard coal power plants within Germany’s electricity system, thereby reducing the need for imported fossil fuels and lowering greenhouse gas emissions. The association estimates that the use of solar power in Germany over the past 20 years has prevented around 500 million tons of greenhouse gases (CO₂ equivalents, net). More than half of this reduction occurred specifically between 2020 and 2025, with about 270 million tons of greenhouse gases being avoided in that time frame alone.

The calculations rely on data from the UBA, particularly Table 8.1, which outlines the environmental impact of various energy sources. Based on UBA estimates, the avoidance of these greenhouse gases corresponds to potential savings of up to 250 billion euros in climate damage costs when considering current and future generations equally. In addition to these avoided damages, the replacement of fossil fuel imports alone was valued at more than 20 billion euros over the past six years, as estimated by the BSW-Solar.

In 2025, renewable energy sources accounted for the majority of electricity generation in Germany, just as they had in the two preceding years. Renewable sources contributed 58.6 percent of the total electricity fed into the grid. However, the overall volume of electricity produced from renewables remained almost unchanged compared to previous years, with their share of the total slightly decreasing by nearly one percentage point. Meanwhile, conventional energy sources saw an increase, especially coal and natural gas, which together supplied 181.3 billion kilowatt-hours—up by 3.6 percent—and accounted for 41.4 percent of the total supply.

Wind power remained the most important single energy source despite a slight decline in its output. It contributed 30 percent to the overall electricity production. At the same time, photovoltaic electricity generation increased significantly in 2025 compared to the previous year, rising by 17.4 percent to reach 70.1 billion kilowatt-hours.

The growth in solar energy production highlights the increasing importance of photovoltaics in Germany's energy mix. As the country continues to expand its renewable energy infrastructure, the economic and environmental benefits associated with solar power are becoming increasingly evident. The continued shift away from fossil fuels is expected to have long-term implications for both Germany's energy security and its contribution to global climate goals. With ongoing investments in renewable technologies and supportive policies, the trend towards greater reliance on clean energy is likely to continue in the coming years.