Why Germany Continues To Lead The Way In Solar Generation

These are the facts that continue to rise based on figures relating to solar PV generation and installation rates when compared to many nations across the world. The U.S. is apparently also playing second fiddle to Germany when it comes to Solar PV uptake.

German Energy Sector

How Much Electricity Does Germany Generate From Solar

While the vast amount of countries within the EU are struggling to meet their renewable energy obligations Germany is well on its way to reaching it’s target, way ahead of schedule. This is not surprising when you consider at the start of 2013 Germany had installations with a joint capacity of 30GW for a country the size of Germany this did represent a remarkable surge in demand which was greatly attributed to the incentive structure within the country which we have covered in the past in a number of our reports.

What Does This Represent To The German Electricity Market

In percentage terms it means that the renewable sector is currently closing in on being responsible for 15% of the overall electricity output for the nation. What this has meant is that due to the increased competition to the electricity providers this has forced the conventional energy market to become more competitive. With the cost per KW at an 8 year low. Such a large scale adoption represent the potential that can be taken given a supportive government willing to reward German resident solar panel transition. As such the nation is inline to receive its incentive payment from the EU which will represent millions to the economy of the nation.

solar panel efficiency

What More Can Be Done By Other Nations To Replicate This Success

By and large the message is clear of keeping the install of the technology enticing to the market, what also has to be pointed out is given the UV intake of the nation what a good job the nation had done to encourage the shift. What this is referring to is that the residents of country such as the United states would benefit far more due to the geographical location of the nation they would have the ability to generate far more from a domestic system but yet it is the Germans who lead the way.

Installation Prices Are Also Key

Another area not really touched on thus far is the significance is that installation prices are far cheaper in Germany as the government has looked to shift the cost of such installation to the middle of the market where as previously for a long time they had been the choice of the wealthy and prosperous now they are an option for the vast majority of the population. When you then couple this in with the incentives available to the German market it no surprise that the industry has swelled. This had occurred at such a rate that now the German government is putting in place measure to scale back commercial investment in solar panel installations by looking to periodically lower the incentives available to business investment.

Who Pays For The Incentive

In a much maligned tactic which has recently been brought to the public domain in the UK it is actually the German citizens which haven’t converted to solar who are footing the bill for the exuberant incentive that many German renewable homes benefit form as it is they who through conventional electricity supplement the incentives. This is to the tunes of billions with each German conventional bill payer supporting the industry to the tune of approx £150 per year.

Are Conventional German Electricity Users Being Held To Ransom

This is a theory that could be muted given that they are having to pay for not having solar power and rewarding those that do thus the argument could be but forward that if you had not switched that you were being penalized for not changing. It is such an argument that has forced the UK government to enter the green subsidy debate that had been played out with many resident who on finding out that they were funding such a scheme claimed to be the case as such there is now a large scale review into the funding of solar power, wind and other incentives within the solar panels UK industry.

Can Other Nation Compete With German Solar Installation in The Short Term

Of course this is possible it is primarily down to how much a country want to put into the market in the form of solar PV funding incentives and grants. While many other analysts are pointing out that an area being missed is that for countries like the U.S. to compete actually isn’t as hard given their location hence they can install less but generate more given the location of all states and major cities within the country being paramount to Germany for greater generation from renewable energy. However whether the U.S. or any other southerly positioned nation takes this solar powered view point and want to make a concerted effort remains to be seen.

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April 30, 2014
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