Is Solar Worth It? When a Solar System Really Pays Off

Photovoltaics is still worth it, even though new systems now get only about 7.70 cents per kilowatt-hour for the power they feed into the grid. The reason is simple: today, almost all of a solar system’s return comes from self-consumption. Every kilowatt-hour you use yourself saves you grid electricity, which at an assumed price of 37 ct/kWh is about five times what feed-in brings. In this guide, we show you honestly when a PV system pays off, how long the payback takes and who benefits most.

Want to know whether solar pays off on your roof? Request your free, no-obligation quote now. We’ll run the numbers with your real consumption data.

How Much Does a PV System for a Single-Family Home Cost?

As a guide, we calculate about €1,450–1,750 per kWp for a fully installed system without a battery:

Since 1 January 2023, you have paid no VAT (0%) on supply and installation on or at residential buildings. You can find more on prices and cost factors under solar panel costs and 10 kWp photovoltaic system.

Worked Example: When Does a 10 kWp System Pay Off?

A four-person household in the Hanover region uses 4,800 kWh a year. The 10 kWp system generates around 8,900 kWh (893 kWh per kWp). We assume an electricity price of 37 ct/kWh and a feed-in tariff of 7.70 ct/kWh, with no electricity price increase and no funding:

Why only 45% with a battery? The system generates almost twice as much power as the household uses, so even with a battery a large share is still fed in. With smaller systems or higher consumption, self-consumption with a battery is more likely to be 55–70%.

After the payback period, the system keeps generating power for many years, as high-quality modules last 25 to 30 years or more. If electricity prices rise, the payback period gets shorter. If you add a heat pump or an electric car, you use more solar power yourself and the numbers look even better.

Return, Cost per kWh and Balance after 20 Years

The worked example without a battery gives these key figures. We deliberately keep it simple: no electricity price increases, no loan and no maintenance costs:

The cost per kWh is the system price divided by the yield over 25 years, about 210,000 kWh with 0.5% output loss per year. Replacing the inverter at some point raises it slightly but doesn’t change the result: power from your own roof is many times cheaper than grid power.

What Really Determines Profitability

• Self-consumption: the most important lever. Without a battery, a typical household uses 25–35% of its solar power itself. If you’re at home during the day or run large appliances like the washing machine and dishwasher at midday, you’ll get higher.
• Electricity price: the more expensive your grid electricity, the more each self-consumed kilowatt-hour is worth.
• Roof: south-facing with a 30 to 35 degree pitch is ideal, but east-west roofs are also profitable and produce power in the morning and evening.
• System price: compare quotes by price per kWp, not just the total price.
• Large consumers: with a heat pump and wallbox, self-consumption rises significantly.

Is Solar Worth It with or without a Battery?

That depends on your consumption profile. If you’re rarely at home during the day, a battery helps more, because otherwise you hardly use the midday power. If you’re at home a lot or have high daytime consumption, the system often pays off very well without a battery. On the numbers alone, a battery usually takes longer to pay for itself than the PV system. It becomes important with rising electricity prices, high evening consumption, and if backup power and independence matter to you. You’ll find an honest worked example in our guide to home battery storage.

Funding and Tax: What Improves the Numbers

• 0% VAT: since 1 January 2023, for the supply and installation of PV systems and batteries on or at residential buildings, including rented houses.
• No income tax: income from systems up to 30 kWp per residential or commercial unit is tax-free under Section 3 No. 72 of the German Income Tax Act (EStG), up to a total of 100 kWp per taxpayer.
• Feed-in tariff: for systems commissioned by 31 December 2026, the fixed rate applies for 20 years. According to the government’s draft EEG 2027 amendment, new small systems would then only get a time-limited transition payment. You can read the details under EEG amendment 2027.
• KfW 270 loan: low-interest financing for the system and battery. It is a loan, not a grant.
• Regional funding: in Hanover and five neighbouring municipalities, proKlima funds fully covered roofs while funds last. According to proKlima, applications for 2026 are possible until 31 October 2026. You must apply before placing the order. Find out more under solar funding in Hanover.

There is no federal grant for private PV systems.

Want to see your own numbers? Request your free, no-obligation quote now.

Is Solar Still Worth It from 2027?

According to the government draft of the EEG amendment 2027, new systems under 25 kW will no longer receive a fixed feed-in tariff for 20 years, but 5.2 ct/kWh for 36 months and then revenue from direct marketing. Exactly how much that will be is not yet known.

A rough estimate for our worked example: if power fed into the grid only earns about 3 ct/kWh on average, the annual benefit without a battery falls from about €1,470 to about €1,180. Payback then lengthens from 10–12 to about 12–15 years. The savings from self-consumption stay the same, so a battery, heat pump, wallbox and energy management become more important. Solar is still worth it from 2027, but the numbers depend even more on how much power you use yourself. If your system is commissioned by 31 December 2026, you still secure the fixed tariff for 20 years.

Who Is Solar Worth It For?

Retirees and Home Workers

If you’re at home during the day, you use a lot of solar power directly. That raises self-consumption even without a battery. If you pay for the system from your own savings, you also avoid loan interest.

Households with a Heat Pump or EV

Both need a lot of electricity and can be timed. That means much more solar power stays in your own home. Read more under combining a heat pump with a PV system.

Northern Germany with Less Sun

Solar is worth it in the north too. Lower Saxony gets a little less sun than southern Germany, but that’s more than enough for a profitable system. At around 893 kWh per kWp per year, a system in the Hanover region generates considerably more power than a typical household uses.

Older Buildings

Solar is worth it on older houses too, but check the condition of the roof first. If a renovation is due in the next few years, combine the two. Read more under solar panels and roof renovation.

When Is Solar Less Worth It?

• The roof is heavily shaded, for example by tall trees or neighbouring buildings.
• The roof needs renovating within a few years and you don’t want to do both together.
• Your electricity consumption is very low, for example around 3,000 kWh a year, and you’re not planning any large consumers. Then a large share of your solar power goes into the grid for a few cents, and payback takes longer. A smaller system or a balcony power station is then often the better choice.

How to Proceed

1. Check your consumption: annual consumption from your electricity bill, plus any plans for a heat pump or EV.
2. Have your roof checked: orientation, pitch, shading, condition and structure.
3. Compare quotes: price per kWp, components with model numbers, included services and payment terms.
4. Clarify funding: apply for regional programmes before placing the order.
5. Installation and registration: grid operator and Market Master Data Register.
6. Optimise self-consumption: run large appliances at midday and use energy management.

At PVPro Solar, you get a free initial consultation with roof analysis and yield forecast, and a fixed-price quote with modules from AIKO, JA Solar or Longi, a Fronius inverter and an optional BYD battery. Our own certified technicians handle the installation, and we take care of registration for you. You pay using the 30/70 model.

Request your free, no-obligation quote now, or call us on +49 511 3360603 or message us on WhatsApp at +49 176 2399 8536.

Frequently Asked Questions: Is Solar Worth It?

Note: This article provides a general overview (as of October 2026) and does not replace tax or legal advice.