The GermanGW of installed solar PV capacity by 2030,[7] to be reached with an annual increase of 2.5–3.5 GW,[8] and a goal of 80% of electricity from renewable sources by 2050.[9] From 3.5 GW to 4 GW are expected to be installed in 2013. Solar power in Germany has been growing considerably due to the countrys feed-in tariffs for renewable energy which were introduced by the German Renewable Energy Act. Prices of PV systems have decreased more than 50% in 5 years since 2006.[1] As of 2012, the FiT costs about 14 billion euros (US$18 billion) per year for wind and solar installations. The cost is spread across all rate-payers in a surcharge of 3.6 €ct (4.6 ¢) per kWh[10] (approximately 15% of the total domestic cost of electricity).[11] On the other hand, as expensive peak power plants are displaced, the price at the power exchange is reduced due to the so-called merit order effect.[12] German electricity generation on May 25 and May 26, 2012 Germany set a world record for solar power production with 24.2 GW produced at midday on April 17, 2014.[13][14] A feed-in tariff is the most effective means of developing solar power.[15] It is the same as a power purchase agreement, but is at a much higher rate. As the industry matures, it is reduced and becomes the same as a power purchase agreement. A feed-in tariff allows investors a guaranteed return on investment - a requirement for development. A primary difference between a tax credit and a feed-in tariff is that the cost is born the year of installation with a tax credit, and is spread out over many years with a feed-in tariff. In both cases the incentive cost is distributed over all consumers. This means that the initial cost is very low for a feed-in tariff and very high for a tax credit. In both cases the learning curve reduces the cost of installation, but is not a large contribution to growth, as grid parity is still always reached.[16]
Posted on: Thu, 08 May 2014 18:33:44 +0000
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