Germany's solar story

July 31, 2014 | By Barbara Vergetis Lundin

The Solar Energy Industries Association (SEIA) has released a study prepared by the Brattle Group, which takes an in-depth look at Germany's solar support programs and how the United States can benefit in the long term by applying lessons learned.

Freiburg Minster. Credit: Wikimedia Commons/Oberth

Currently, Germany has 35 GW of installed solar capacity -- representing about 7 percent of the nation's wholesale generation -- and is on track to reach 52 GW in the near future. But the path has not been obstacle free.

"The primary lessons from the German experience are that a system of FITs [feed-in-tariffs], such as the one used in Germany, can be highly effective in promoting the growth of solar PV," the report contends. "But FITs for new installations should be adjusted regularly and perhaps automatically… so as to avoid undue increases of electricity rates for retail customers."

The report goes on to say that, "The reform efforts of the solar PV and renewable support programs in Germany should not be interpreted as an acknowledgement of a broad failure of the Germany systems of FITs. Rather, the reforms are indeed an effort to improve the design of the FIT system… Germany's experience therefore likely provides an opportunity to 'look ahead' and see how electricity systems and the rules governing them will have to adapt when penetration rates of various renewable energy sources reach levels similar to those in Germany today and beyond."

Solar in Germany has had its benefits, which the report claims outweigh the issues.

"When you examine all of the facts, Germany is a lesson to be learned from, not an experience to be avoided. Admittedly, the costs of Germany's renewable support programs, including solar PV, have been significant -- and higher than expected. But that's only part of the story," said SEIA President and CEO Rhone Resch. "There is also significant evidence that increased power production from the use of solar and other renewables is a major contributor to falling wholesale market prices in Germany, while also helping to significantly reduce pollution."

For more:
- download the report

Related Article:
Renewable energy lessons from Germany

http://www.fierceenergy.com/story/germanys-solar-story/2014-07-31