Solar Power Demand In Germany On Fire

People on the frontlines of Europe's gas crisis are scrambling to get solar panels for their homes and businesses as they confront a "perfect storm" that's sending energy prices to record levels, Michelle Toh reported for CNN Business.

Photo Insert: Krughütte solar park

In the first six months of this year, Germany saw a 22% jump in the installation of solar systems, compared with the same period last year, according to data shared with CNN Business by the German Solar Association.

This included residential and commercial uses, from small installations on private rooftops to large solar farms, the group said. Schneider Electric, a European industrial and energy giant, says demand for its solar-powered heating systems in Germany has "almost doubled" so far this year compared to the same period in 2021.

The company's sustainability arm, which advises businesses on clean energy procurement, has also reached "an all-time peak" in consultancy requests, according to Konstantin Elstermann, the firm's vice president of home and distribution.

For companies in the renewable energy industry, that has created a major rush in sales — and an additional strain on supply chains. Demand for solar power was already on the rise in Europe's biggest economy, as energy prices surged, policy incentives were introduced and adoption of the technology became more mainstream.

But more recently, consumers have also faced ever higher utility bills, scorching temperatures, and renewed anxiety over whether they'll be able to keep the heat on this winter, Chris Liakos and AJ Davis also reported for CNN Business.

Since it invaded Ukraine six months ago, Russia has sharply reduced its supply of gas to Germany and other EU countries. Just last week it announced an unscheduled closure of its Nord Stream 1 pipeline later this month for maintenance, sending spot natural gas prices to a new record high.

For many households, the biggest fear is that Russia will turn off the tap completely this winter. The German government has already set in motion a crisis management plan that could see rationing to businesses if that happens.

"This [demand] has only gotten stronger with the war against Ukraine, which is happening on our doorstep," David Wedepohl, managing director of the German Solar Association told CNN Business.

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