About 1.5 million photovoltaic systems with a total capacity of 38 gigawatt (GW) are installed in Germany, ranging from small rooftop systems to large solar parks. In 2014 photovoltaics produced approximately 6.9% of Germany’s net electricity consumption. On sunny days, solar power can cover 35 to 50 percent of the momentary electricity demand. Almost half of the capacity is installed in the southern states Bavaria (11.1 GW) and Baden-Württemberg (5.1 GW) followed by North Rhine-Westphalia (4.2 GW). 2.3 billion Euro have been invested in new photovoltaic installations in Germany in 2014. This is a decline of almost 2 billion compared to 2013 and a drop by 87% since the record year of 2010. As the German Renewable Energy Sources Act (EEG) guaranteed a fixed feed-in payment it provided sustained planning security for investors in PV systems. The feed-in tariff was set for a 20- year term at regular intervals. The subsidy is covered through a surcharge on consumer electricity bills. The government has provided – and afterwards cut – the incentives for solar energy systems. As a result the amount of new installations declined significantly due to the restrictive governmental policies. The 0.57 € feed-in tariff for medium-sized rooftop systems, that was paid in 2004, has fallen to around 0.12 € per kWh today. See the factsheet for the development of economic declines.