How do commercial entities actually behave PV systems at negative electricity pricesThis topic is extremely complex and increasingly urgent. Because with the rising number of hours with negative electricity prices (389 in the first half of 2025, compared to 457 in the entire year 2024), the economic pressure on plants whose electricity is not fully consumed by themselves is also growing. This makes it all the more important to manage the photovoltaic system consistently oriented towards own consumption. The higher the self-consumption rate, the more stable and independent the operation – even with strongly fluctuating or negative electricity prices.
Why negative electricity prices are becoming more common
Negative electricity prices primarily occur when a large amount of renewable electricity, especially from wind and solar power plants, is fed into the grid while demand is simultaneously low. Typical situations include sunny weekends or holidays when industrial electricity consumption significantly decreases. A detailed analysis of the causes, market mechanisms, and regulatory developments can be found in our article. Negative electricity prices as a challenge & opportunity.
What does this mean for PV system operators?
For operators of PV systems, negative electricity prices pose new challenges. This is especially true when the generated electricity not fully self-consumedbut fed into the grid This depends heavily on the technical equipment and marketing method of the facility:
- Non-controllable PV systems switch off completely at negative prices – with the disadvantage that the company then has to obtain its entire electricity demand from the grid – or they remain connected to the grid and, in the worst case, pay for their feed-in. Operating such unregulated PV systems is therefore becoming increasingly unprofitable.
- For EEG-subsidized facilities effective February 2025 under the Solar Package I: The feed-in tariff will no longer apply starting from the first hour with negative prices. The system will shut down in this case. However, the lost hours will extend the EEG subsidy period accordingly, which, however, disrupts the economic viability or the originally calculated ROI.
- Adjustable Systems have a clear advantage: they can specifically reduce only the feed-in to the grid, while self-consumption within the company is maintained. This allows the system to be used meaningfully even during phases of negative market prices.
- Companies with Large battery storage systems have an additional option: You can store the excess electricity and use it yourself later at an economically sensible time, or feed it into the grid.
Economic & Regulatory Consequences for PV System Operators
The increasing frequency of negative electricity prices presents new economic and regulatory challenges for operators of commercial PV systems. Generally, larger systems subject to the direct marketing obligation are affected. A SAPB study now shows that only a fraction of directly marketed systems are actually curtailed, even with extreme negative prices of up to -500 €/MWh. This is mainly due to technical and contractual hurdles, burdens the electricity grid, and drives up the costs for redispatch measures. Even the fact that EEG systems have received no feed-in tariff since February 2025 from the first hour of negative prices has hardly provided any relief.
Operators of non-controllable systems and fixed electricity tariffs face the choice of either shutting down the system completely and purchasing expensive grid power or continuing to operate the system and paying for the amount fed into the grid. In both cases, this has a huge impact on the economic viability of the operation. In contrast, operators of controllable systems are in a much better position: they can specifically reduce their grid feed-in while self-consumption remains possible.
Flexibility determines economic efficiency
This results in a clear distinction for operators:
- Unregulatable plants without modern control technology have only two options: either complete shutdown – which makes full coverage of electricity demand through grid supply necessary – or continued operation with the risk of having to pay for the amount of electricity fed in. In both cases, profitability suffers significantly.
- Adjustable systems with intelligent control can specifically reduce only the feed-in to the grid, while self-consumption within the company is maintained. This not only improves profitability but also reduces risks from volatile market prices.
- Systems with storage offer additional leeway: excess electricity can be temporarily stored and used or sold at a later time. The combination of self-consumption, curtailment, and storage is currently the most economically viable and grid-friendly operating mode.
Role of Direct Marketers in Curtailment
Direct marketers react very differently to negative electricity prices – depending on the contractual arrangements, technical infrastructure, and economic leeway:
- Complete curtailment is rare: even when prices are deeply negative, plants are almost never shut down completely. Market analyses show that, on average, only about 10% of plants in the direct sales market are actually curtailed.
- Targeted reduction of grid feed-in is the norm: Instead of a complete shutdown, feed-in to the grid is usually reduced—in stages, e.g., to 50–60% of the rated power. Production and self-consumption continue. This typically requires a smart meter with a control box.
- Legal and technical hurdles still exist: Many existing facilities lack the necessary control technology or are contractually bound inflexibly in direct marketing. Additionally, uniform standards for rapid, market-oriented control are missing.
In short: The economic consequences of negative electricity prices primarily affect operators of inflexible plants. In contrast, those who invest early in controllability, storage solutions, and intelligent energy management can not only avoid risks but also unlock new revenue potential – for example, through dynamic marketing strategies, flexibility markets, or optimized self-consumption.
Strategies & Options for Operating PV Systems with Negative Electricity Prices
The development towards more frequent negative electricity prices makes it clear: PV systems will not only have to generate electricity in the future, but also Systemically useful and Flexible to be operated. This creates several strategic fields of action for operators to remain economically stable and meet regulatory requirements.
Ensure controllability and remote controllability
For all systems with (partial) feed-in to the grid, controllability becomes crucial: Only those who can react to price signals in a targeted and automated manner will avoid losses and meet the requirements of direct marketing. Modern inverters and EMS enable stepless or dynamic throttling of grid feed-in – while simultaneously continuing operation for self-consumption or battery storage.
Optimize collaboration with the direct marketer
Close communication with the direct marketer is essential. Only when they are informed about the technical requirements and operational scope of the plant can a flexible and market-oriented operation be coordinated. Operators should review their contracts and question how strongly and quickly the direct marketer reacts to negative prices, and what options for throttling or storage control are already integrated.
Check storage integration
Battery storage systems offer the possibility of storing surplus energy and self-consuming or feeding it in during later time slots with higher prices. This is an increasingly economically viable option, especially for medium to large commercial facilities with fluctuating daily consumption, particularly when subsidies or tax advantages can be utilized.
Increase focus on self-consumption
One important lever remains direct self-consumption: the higher the proportion of generated electricity that is used directly in one's own operation, the less the system is affected by negative stock market electricity prices. Load shifting – e.g., through flexible control of production processes or charging infrastructure – can help to specifically maximize self-consumption.
Early adaptation to regulatory developments
With a view to future changes in feed-in tariffs, grid fees, and flexibility requirements (e.g., § 14a EnWG, future redispatch requirements, grid fee reforms), it is advisable to invest early in transparency and adaptability. The introduction of dynamic grid fees and time-variable feed-in tariffs will also put more pressure on PV systems in the future – or specifically reward them if they are operated in a grid-supportive manner.
Perspectives & Outlook for PV Systems with Negative Electricity Prices
The increasing number of hours with negative electricity prices is not a short-term phenomenon – but an expression of a profound structural change in the German electricity market. Photovoltaic systems are a central component of the energy transition, but they must increasingly adapt to changing market mechanisms and regulatory frameworks.
From Feed-in Tariff to Flexible Market Participant
The classic role of the PV system as a pure electricity supplier is being replaced by a new expectation: PV systems should be operated flexibly and in a grid-friendly manner in the future. This means that they should automatically stop feeding in electricity during periods of negative electricity prices. In such phases, operators or companies should ideally even be able to absorb additional electricity from the grid.
Dynamic Electricity Markets & New Business Models
As part of the electricity market reform, dynamic price signals, flexible rates, and short-term controllability are becoming increasingly important. The combination of PV systems with storage and smart energy management is giving rise to new business models, such as time-variable on-site PPAs or Contracting storage with market integration. As a result, spot, flexibility, and capacity markets—as well as grid-supporting products—are becoming increasingly attractive to operators.
Risks of Inaction – Opportunities for Pioneers
Operators who do not adapt their plants to the new market logic in a timely manner risk economic losses. These arise from lost revenue, mandatory curtailments, or new charges for grid-impacting behavior. At the same time, a new field of opportunities opens up for those who invest in flexibility early on. More precise responses to price signals, combined storage solutions, cross-sectoral use (e.g., PV and e-mobility), and positioning as a system-serving electricity player are lucrative areas.
Long-term perspective: Local electricity markets & cross-sectoral integration
With increasing digitalization and decentralization, the regional marketing of PV electricity is also becoming more attractive. This is possible through local electricity communities, bidirectional grids, or direct supply agreements (Onsite PPAs). In the long term, the role of PV systems will extend beyond the electricity market: they will become an integral part of networked energy systems that intelligently link electricity, heat, mobility, and storage.
Conclusion
The number of negative electricity price hours is increasing. This presents significant economic and technical challenges for operators of commercial PV systems, especially when the generated electricity is not fully consumed on-site.
Starting in February 2025, the EEG remuneration will be eliminated from the first hour onwards in case of negative prices. Curtailment of feed-in will become mandatory, while the funding period will be extended accordingly. Non-controllable systems will therefore come under increasing economic pressure.
The solution: A consistent focus on self-consumption, supplemented by storage solutions and remotely controllable regulation technology. This allows operators to specifically react to market price signals, prioritize self-consumption, and avoid losses.
Those who invest in the flexibility of their PV system today are securing its profitability, even in an increasingly volatile electricity market.