Germany’s 2026 solar power output has already exceeded the total generated in all of 2025, according to the German Solar Association (BSW-Solar), while leading economists warned that the Berlin regime faces a serious budget crisis from next year unless spending priorities are reset. The twin developments emerged as the Bundestag budget committee approved a provisional 2027 federal budget after nearly 16 hours of negotiations, with new debt including special funds around €210 billion ($231.5 billion), core spending at a record €561 billion and net borrowing in the core budget alone climbing to almost €123 billion.
Key Takeaways: Solar production reached 90.2 terawatt-hours by September 27, already above the 90 terawatt-hours generated in all of 2025, and is likely to surpass 100 terawatt-hours for the first time in a calendar year. The provisional 2027 budget foresees about €210 billion in new debt including special funds and record core spending of €561 billion. Economists and the federal audit court warn that the fiscal path is unsustainable without consolidation, spending cuts or additional levies.
The budget debate comes as Europe’s largest economy is supposedly navigating weaker growth, aging pressures and higher interest costs. The Bundestag’s budget committee approved the provisional 2027 plan early on Friday, but the figures show how much of the spending is financed by borrowing. According to the Bundesrechnungshof, every third euro spent by the regime is financed by debt, a signal that the coalition regime is living beyond its means. The audit court has called for stronger consolidation efforts and warned that interest spending’s share of the federal budget is set to double, although the source’s reference to “by 2020” appears inconsistent with the 2026 timeframe and has not been independently verified in the excerpt.
Clemens Fuest, president of the Ifo Institute in Munich, told Die Welt’s Sunday edition that “this budget policy cannot be sustained in the long term,” adding that spending priorities must be established and “all other spending should be frozen or, if possible, cut.” He said tax rises would be inevitable if that did not happen. Jens Boysen-Hogrefe of IfW Kiel said that economic fluctuations and special effects may create “some breathing room in individual years, but the trend is clearly negative,” citing an aging population and rising interest payments. He added that “additional levies are likely even with strong spending discipline.” Ansgar Heveling, president of the federal audit court, called on the coalition regime to do more to consolidate the budget.
On energy, BSW-Solar said an above-average number of sunshine hours and a growing number of photovoltaic facilities pushed output to 90.2 terawatt-hours by September 27, compared with 90 terawatt-hours for all of 2025. That likely puts solar above 100 terawatt-hours in net electricity generation for a single year—almost 10 times the annual electricity use of a major city such as Hamburg and almost 50 times the 2.2 terawatt-hours generated by solar 20 years ago. Carsten Körnig, BSW-Solar’s managing director, said photovoltaics has moved “from a niche technology into a cornerstone of our electricity supply,” adding that society benefits through cheaper electricity, fewer energy imports and lower climate-related damages. Photovoltaics accounted for 17.8% of total power generation, ranking third behind wind and coal.
The next steps will focus on whether the provisional 2027 budget survives final parliamentary scrutiny and whether the coalition regime can agree on consolidation measures before borrowing costs and demographic pressures narrow its room for manoeuvre. For the solar sector, the expected record will strengthen its case for grid and storage investment, but the budget crisis may complicate claims that the energy transition can be financed without difficult trade-offs.
Source: www.dw.com