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German Policy Could Make Solar in America "Wunderbar"
German Policy Could Make Solar in America "Wunderbar"
By John Farrell March 20, 2012
The Germans are debating significant revisions to their landmark renewable energy policy, and instead of declaring the death of the German solar market, Americans should focus on why solar still costs so much on this side of the Atlantic.
After a significant step-down this month, revisions to the German feed-in tariff will require utilities to buy electricity from solar projects 10 kilowatts or smaller for 19.5 euro cents per kilowatt-hour (kWh) on a 20-year contract. Larger projects (over 1 megawatt) will get just 13.5 euro cents per kWh. Using insolation data for Munich, these prices translate to installed costs of approximately $2.24 and $1.55 per Watt, respectively.
<snip>
The irony is that Americans point to Germany and say, “they pay too much for electricity,” while a majority of Germans continue to say, “we’re willing to pay more for clean power,” because they can (and do) own it. In fact, over half of Germany’s renewable energy capacity is locally owned, multiplying the economic benefits of their renewable energy policy and reinforcing political support for clean energy (while support for clean energy has declined in the U.S.).
Quite a few folks have decried the price cuts to the German solar feed-in tariff as “the end is nigh,” but especially in comparison to American solar policy, it’s more appropriate to declare, “mission accomplished.”
By John Farrell March 20, 2012
The Germans are debating significant revisions to their landmark renewable energy policy, and instead of declaring the death of the German solar market, Americans should focus on why solar still costs so much on this side of the Atlantic.
After a significant step-down this month, revisions to the German feed-in tariff will require utilities to buy electricity from solar projects 10 kilowatts or smaller for 19.5 euro cents per kilowatt-hour (kWh) on a 20-year contract. Larger projects (over 1 megawatt) will get just 13.5 euro cents per kWh. Using insolation data for Munich, these prices translate to installed costs of approximately $2.24 and $1.55 per Watt, respectively.
<snip>
The irony is that Americans point to Germany and say, “they pay too much for electricity,” while a majority of Germans continue to say, “we’re willing to pay more for clean power,” because they can (and do) own it. In fact, over half of Germany’s renewable energy capacity is locally owned, multiplying the economic benefits of their renewable energy policy and reinforcing political support for clean energy (while support for clean energy has declined in the U.S.).
Quite a few folks have decried the price cuts to the German solar feed-in tariff as “the end is nigh,” but especially in comparison to American solar policy, it’s more appropriate to declare, “mission accomplished.”
http://www.renewableenergyworld.com/rea/blog/post/2012/03/german-policy-could-make-solar-in-america-wunderbar?cmpid=SolarNL-Thursday-March22-2012