Generally, balcony panels are hung off the side of the railing, so no space was lost. If this was blocking out windows or reducing the enjoyment of apartments then I could understand, but this basically unlocks “free” solar panel real estate in apartments, without any real installation costs.
Meanwhile, decentralized power generation with all these liminal spaces is basically impossible for a utility company. Hundreds of dollars/euros is not trivial, but spread across years of usage, it’s a pretty affordable way to reduce power consumption, and it’s well within affordable range for the median German household. Plus it’s subsidized! This basically lowers the cost for the utility to create locally generated renewable power, reducing demand over the expensive to maintain public infrastructure.
Being able to plug a solar panel into a spare wall outlet and reduce your bill and grid power usage is so easy, anyone can do this. This isn’t allowed in most of the United States, for example, because central authorities banned it due to outdated safety rules. Many areas with this banned have far more sunlight than Germany (eg California), so far more incentive for the population to want it.