German Electrical Industry's Business Climate Index Rises, but PV Sector Declines
The German electrical industry's business climate index has shown a slight rise to 68.8 points, according to the ZVEH's autumn 2025 survey. However, the photovoltaic sector continues to decline, and businesses express concern about political uncertainty and economic challenges.
The share of photovoltaic systems and storage has decreased to 6.5%, with the photovoltaic sector's revenue share dropping to 7.3%. ZVEH CEO Alexander Neuhäuser attributes this decline to political uncertainty regarding the energy transition. Despite this, the 'E-Mobility' segment grew to 3.8%, and 'Heat Pumps and Ventilation Systems' increased to 3.4%.
The business climate index, although up from 67.0 points, remains lower than previous years. 21.9% of businesses anticipate a deterioration in the next six months, while only 14.4% expect improvement. The majority, 63.7%, anticipate no change. Neuhäuser expresses concern that the industry's robustness may be eroded by current economic and energy policies. The 'Smart Home' business field also saw a decline, from 4.1% to 3.6%.
The semi-annual survey involved 1,562 participating companies, indicating a stable business situation overall.
While the electrical industry's business climate index has shown a modest improvement, the photovoltaic sector's decline and businesses' cautious outlook regarding future development warrant attention. Political clarity on the energy transition and supportive economic policies are crucial for the industry's robustness.
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