
Solar energy is a topic that everyone is talking about. With a solar energy system, you can convert this energy into electricity or heat. There is a difference between photovoltaic systems and solar thermal systems. In this article, we will explain the advantages and disadvantages of both types.

Advantages and Disadvantages of Solar Energy Systems and Solar Power Generation
Solar energy is usable energy produced with the help of solar radiation. This energy can be generated in the form of electricity (photovoltaic) or heat (solar energy).
We’ve listed the pros and cons of both for you in our Solar Power Pros and Cons Chart.
Why choose | shortcoming |
---|---|
Green energy generation | Weather Dependence |
Independence from grid providers | High initial cost |
Save on electricity and heating costs | Bureaucratic efforts |
Protect against rising energy prices over the next 25 to 40 years | Low energy production in winter |
Electricity and heat are generated at the point of consumption, i.e. there is no energy transmission | If the modules are transported over longer distances, the impact on the environment will be less |
Solar cells are free to dispose of and recycle | Tax-related work |
Low maintenance cost | Adequate roof space required |
Electric vehicles can be charged for free |
Advantages of Solar Energy Systems and Solar Power Generation
In addition to green electricity and heat, the advantages of solar energy also lie in the reliability of energy production over the next 25 to 40 years. Solar energy systems also have the advantages of saving electricity and heating costs, and have relatively low maintenance costs. At the same time, they are not affected by rising energy prices.

Solar energy is green, emission-free and environmentally friendly
Compared to electricity generated from coal and gas, the use of solar energy does not require fossil fuels. This means that no CO2 is emitted during the electricity generation process. The CO2 balance of photovoltaic electricity generation is 50 grams per kilowatt-hour of electricity, which is very good.
In comparison, electricity generated from lignite emits more than 1,000 grams of CO2 per kilowatt-hour. For hard coal, it is more than 800 grams/kWh, while for natural gas it is still 500 grams/kWh.
Therefore, solar cells will pay for themselves in one to three years, depending on the type of cell. In other words, within one to three years, a solar system will produce more electricity than the solar cells used to produce it.
A solar system makes you independent from grid operators and rising prices
With your own solar system, you are less dependent on the grid operator. This means you are no longer subject to rising electricity prices and, in some cases, power outages. Fossil fuels are not available indefinitely, which is why electricity prices are rising. They account for more than 70% of electricity generation in the United States.
Solar power, on the other hand, is unlimited and free. With a solar system, you can generate your own electricity for a fixed price every day.
By combining a solar system with electricity storage, you become even more independent. The solar energy you generate yourself is stored so you can also use it in the evening and at night. This means you have to buy less electricity from the public grid. The solar system can now cover up to 80% of your electricity needs.
Permanent reduction in electricity costs
Generating electricity with photovoltaics is free, but you first have to buy or lease a photovoltaic system. However, if you calculate the acquisition costs over 20 to 25 years, a kilowatt-hour of electricity costs just under 11 cents. At current electricity prices of around 36 cents (as of March 2022), you can save up to 25 cents per kilowatt-hour.
Power generation guaranteed for at least 25 years
The service life of a good photovoltaic system is at least 25 years. In fact, the service life is much longer. With regular cleaning, maintenance and occasional repairs, the service life can reach 30 to 40 years. During this time, your electricity bills will be significantly reduced.
Electric cars can be charged for free.
The best thing about photovoltaic power generation is that the more electricity you use yourself, the more profitable your own solar system becomes. If you combine a photovoltaic system with a wall box, you can easily charge your electric car . This means that you can charge your electric car for free while increasing your own consumption, thus increasing the profitability of your solar system.
Disadvantages of Solar Systems and Solar Power
Private home solar systems cost between $7,000 and $20,000. Photovoltaic systems with storage systems can cost even more. They take about 10 to 15 years to pay for themselves through electricity savings.
Do you want to save on purchase costs and not worry about other things? Some suppliers offer solar energy systems without purchase costs. With this model, you rent a solar energy system permanently and pay monthly installments of a previously agreed amount. The provider also takes care of the maintenance and insurance of the photovoltaic system.
Solar energy depends on the weather
Although electricity production photovoltaics also work in bad weather and in the shade , in these cases the yield is significantly lower. Even under light cloud cover, power generation is reduced by up to 60%. On rainy days, power losses are up to 95%. Therefore, the full solar power output can only be achieved on completely clear days.
As a solution, you can install an electricity storage system. This can store excess electricity on sunny days. This means you can use it at night or on days with bad weather.
Solar power generation is lower in winter
Since the sun moves not only throughout the day but also throughout the year, electricity generation in winter is significantly lower than in summer. From January to December, photovoltaic systems generate about 70% of the annual electricity generation. Therefore, in winter, the output is significantly lower. This means that more grid electricity must be purchased to meet daily electricity needs.
Solar systems require taxation and bureaucratic costs
You must register your own solar system with the Tax Office, the Federal Network Agency and the grid operator. Furthermore, operating a photovoltaic system is considered a business activity, which is why taxes are incurred. In some cases, you even have to register a business. However, as a private operator of small systems under 10 kWp, you can take advantage of the hobby rules. In the latter case, your solar system will be exempted from tax by the Tax Office.
Solar panels from Asia are not so environmentally friendly
PV panels from China are generally cheaper because they can be produced on a large scale and with lower labor wages.
Fraunhofer ISE examined the CO2 footprint of various PV module production sites . China has the worst emissions, with 750 kg of CO2 per kW. In the United States, the average is 520 kg of CO2 per kW of power.
Solar Thermal Energy: Advantages and Disadvantages of Solar Power Generation
In addition to generating electricity, solar energy can also be used to generate heat. An alternative to photovoltaics is solar thermal systems used for this purpose.
Advantages of Solar Thermal Energy
The advantages of using solar energy to generate electricity are as follows:
Free electricity generation for 20-30 years
Solar thermal systems generate heat for free for 20 to 30 years. Maintenance and cleaning costs are lower than for photovoltaics. If the acquisition cost is used as the basis for the heat price, the cost of a kilowatt-hour is between $0.10 and $0.20. The price remains constant, while fossil fuels such as oil and gas become more expensive every year.
Excess energy can be stored in buffer tanks
Solar thermal systems always use a thermal storage tank. If the heat generated is not used directly for heating or hot water, it is sent to a buffer storage tank. It can then be used at a later time. This means that the heat generated does not sit unused.
Solar thermal systems are CO2-free and climate-friendly
Just like photovoltaics, solar thermal systems are emission-free and climate-neutral. The energy payback period is two to four years. After that, the system will generate the energy needed for production and transport. It will then generate climate-neutral heat for the next 20 to 30 years.
Direct subsidies for solar thermal systems
The Federal Office of Economics (BAFA) provides subsidies for solar thermal systems. You can receive a direct payment of up to 30% of your investment costs.
Solar thermal energy can also be installed on the walls of houses
Solar thermal panels can be easily mounted on the walls of a house. Thanks to this type of mounting, the roof is free for the installation of an additional photovoltaic system. In addition, steeply mounted solar collectors achieve better energy production in winter, when heating is also required. This is because the angle of the sun is shallower in winter. This also prevents overheating in summer.
Disadvantages of Solar Thermal Energy
Along with its advantages, solar thermal energy also has some disadvantages.
High acquisition cost
Like photovoltaics, solar thermal systems are also expensive to acquire. On average, the costs for a detached house are just under $10,000. In many cases, the purchase of a solar thermal system is also associated with boiler modernization. Here you can incur further costs of up to $10,000.
However, you can also get a subsidy for solar thermal in the form of a direct payment. BAFA will pay you up to 30% of the purchase price. This reduces the purchase cost to just $7,000.
Unused summer heat
Especially in the summer, when there is no heating, there is excess heat. If the buffer tank is full, the heat is usually not used. One option is to heat the water in your own swimming pool – if you have one.
Another solution is to install the collectors on the walls of the house instead of on the roof. Here, the angle of the sun’s rays is less favorable in the summer, so the heat generated is lower. However, this angle is perfect for the winter. The solar thermal system generates more heat, which can be used for heating.
Depends on the weather
Solar energy always depends on the weather. However, solar thermal energy is less dependent on solar radiation than photovoltaics. Even under diffuse radiation conditions, solar thermal systems still perform well. However, in winter, the output is reduced by 30%. This is due to lower temperatures and fewer hours of sunshine per day.
Generates only heat, no electricity
Photovoltaics are used to generate electricity. The electricity is versatile and can also generate hot water for consumption or heating. Unfortunately, solar thermal systems are less flexible. If you want both, a combined solar thermal and photovoltaic system might be worthwhile for you. Alternatively, you can opt for a hybrid module. These combine photovoltaics and solar thermal in one.
in conclusion
Whether it is solar thermal or photovoltaics, there are many advantages to using solar energy. They generate electricity and heat, are emission-free and will be free for the next 30 to 40 years. Subsidies in the form of direct payments and preferential loans help to reduce the purchase price. Once the purchase costs are financed, you are reliably protected against rising energy prices.
Proper planning and installation are important to ensure that your solar system will actually produce electricity or heat reliably for a long time. Therefore, it is important that you seek advice from experts on solar installation .
7 thoughts on “Solar Energy Systems: Advantages and Disadvantages of Solar Energy”