Feed-in tariffs in Germany

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Further information: Feed-in tariff and Financial incentives for photovoltaics
Feed-in tariff for rooftop solar PV
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Development of feed-in tariff for small rooftop PV systems smaller than 10 kilowatt-peak capacity since 2001 in Euro-cents per kilowatt-hour[1]

Feed-in electricity tariffs have been introduced in Germany to encourage the use of new energy technologies such as wind power, biomass, hydropower, geothermal power and solar photovoltaics. Feed-in tariffs are a policy mechanism designed to accelerate investment in renewable energy technologies by providing them a fee (a "tariff") above the retail rate of electricity. The mechanism provides long-term security to renewable energy producers, typically based on the cost of generation of each technology.[2] Technologies such as wind power, for instance, are awarded a lower per-kWh price, while technologies such as solar PV and tidal power are offered a higher price, reflecting higher costs.

As of July 2014, feed-in tariffs range from 3.33 ct/kWh (4.4 ¢/kWh) for hydropower facilities over 50 MW to 12.88 ct/kWh (17.3 ¢/kWh) for solar installations on buildings up to 30 kW and 19 ct/kWh (25.5 ¢/kWh) for offshore wind.[3] As of August 2014, a revised Renewable Energy Sources Act (EEG 2014, also called EEG 2.0) will enter into force, with some modifications to the feed-in tariffs.[4] The aim is to meet Germany’s renewable energy goals of 40 to 45% of electricity consumption in 2025 and 55% to 60% in 2035. The policy also aims to encourage the development of renewable technologies, reduce external costs, and increase security of energy supply.[5]

In the first half of 2014, 28.5% of gross electricity production in Germany came from renewable sources.[6] The Federal Environment Ministry estimated that renewables were to save 87 million tonnes of carbon dioxide by 2012. The average level of feed-in tariff was €0.0953 per kWh in 2005 (compared to an average cost of displaced energy of €0.047 kWh). In 2004, the total level of reallocated EEG surcharges was €2.4 billion, at a cost per consumer of €0.0056 per kWh (3 per cent of household electricity costs).[5] By 2013, the figure had risen to €20.4 billion.[7] The tariffs are lowered every year to encourage more efficient production of renewable energy. By 2014, the EEG surcharge - which pays for the additional costs through feed-in tariffs - had increased to 6.24 ct/kWh.[8] As of July 2014, the regular reductions (degressions) were 1.5% per year for electricity from onshore wind and 1% per month for electricity from photovoltaics.

The solar sector employed about 56,000 people in 2013, a strong decline from previous years, due to many insolvencies and business closures. Although most of the installed solar panels are nowadays imported from China, the Fraunhofer institute estimates, that only about 30 percent of the EEG apportionment outflows to China, while the rest is still spent domestically. The institute also predicts that Germany's solar manufacturing sector will improve its competitive situation in the future.[9]

Progression of FiTs since 2012

As of July 2014, feed-in tariffs for photovoltaic systems range from 12.88 euro cents per kWh for small roof-top system, down to 8.92 euro cents per kWh for large utility scaled solar parks. Also, FiTs are restricted to PV system with a maximum capacity of 10 megawatts (MW). The feed-in tariff for solar PV is declining at a faster rate than for any other renewable technology.[10]

Feed-in tariffs for solar PV in €-ct/kWh since April 2012[11]
Year Month Degression Rooftop mounted Ground mounted
up to 10 MWp
up to 10 kWp up to 40 kWp up to 1 MWp up to 10 MWp
2012 April - 19.50 18.50 16.50 13.50 13.50
May 1.0% 19.31 18.32 16.34 13.37 13.37
June 19.11 18.13 16.17 13.23 13.23
July 18.92 17.95 16.01 13.10 13.10
August 18.73 17.77 15.85 12.97 12.97
September 18.54 17.59 15.69 12.84 12.84
October 18.36 17.42 15.53 12.71 12.71
November 2.5% 17.90 16.98 15.15 12.39 12.39
December 17.45 16.56 14.77 12.08 12.08
2013 January 17.02 16.14 14.40 11.78 11.78
February 2.2% 16.64 15.79 14.08 11.52 11.52
March 16.28 15.44 13.77 11.27 11.27
April 15.92 15.10 13.47 11.02 11.02
May 1.8% 15.63 14.83 13.23 10.82 10.82
June 15.35 14.56 12.99 10.63 10.63
July 15.07 14.30 12.75 10.44 10.44
August 1.8% 14.80 14.04 12.52 10.25 10.25
September 14.54 13.79 12.30 10.06 10.06
October 14.27 13.54 12.08 9.88 9.88
November 1.4% 14.07 13.35 11.91 9.74 9.74
December 13.88 13.17 11.74 9.61 9.61
2014 January 13.68 12.98 11.58 9.47 9.47
February 1,0 % 13.55 12.85 11.46 9.38 9.38
March 13.41 12.72 11.35 9.28 9.28
April 13.28 12.60 11.23 9.19 9.19
May 13.14 12.47 11.12 9.10 9.10
June 13.01 12.34 11.01 9.01 9.01
July 12.88 12.22 10.90 8.92 8.92
Maximum remuneration part[12] 100% 90% 90% 100% 100%

Progression of FiTs before 2012

The feed-in tariff system has been modified frequently. The feed-in tariff, in force since 1 August 2004, was modified in 2008.[13] In view of the unexpectedly high growth rates, the depreciation was accelerated and a new category (>1000 kWp) was created with a lower tariff. The facade premium was abolished. In July 2010, the Renewable Energy Sources Act was again amended to reduce the tariffs by a further 16% in addition to the normal annual depreciation, as the prices for PV-panels had dropped sharply in 2009.[14] The most recent modification of the EEG occurred in 2011, when part of the degression foreseen for 2012 was brought forward to mid-2011 as a response to unexpectedly high installations in the course of 2010.[15]

Feed-in Tariffs (€ct/kWh) for newly installed photovoltaic systems, paid during 20 years
type 2004 2005 2006 2007 2008 2009 2010 Jul 2010 Oct 2010 2011
Rooftop mounted up to 30 kW 57,4 54,53 51,80 49,21 46,75 43,01 39,14 34,05 33,03 28,74
between 30 kW and 100 kW 54,6 51,87 49,28 46,82 44,48 40,91 37,23 32,39 31,42 27,33
above 100 kW 54,0 51,30 48,74 46,30 43,99 39,58 35,23 30,65 29,73 25,86
above 1000 kW 54,0 51,30 48,74 46,30 43,99 33,00 29,37 25,55 24,79 21,56
Ground mounted conversion areas 45,7 43,4 40,6 37,96 35,49 31,94 28,43 26,16 25,37 22,07
agricultural fields 45,7 43,4 40,6 37,96 35,49 31,94 28,43 - - -
other 45,7 43,4 40,6 37,96 35,49 31,94 28,43 25,02 24,26 21,11

Support duration 20 years, constant remuneration. Feed-in tariffs was lowered repeatedly (decreasing by 9% default and a maximum of 24% per year). Degression will be accelerated or slowed down by three percentage points for every 1000 MWp/a divergence from the target of 3500 MWp/a.

References

  1. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  2. ↑ Policymaker's Guide to Feed-in Tariff Policies, U.S. National Renewable Energy Lab, www.nrel.gov/docs/fy10osti/44849.pdf
  3. ↑ German Energy Blog German Feed-in Tariffs 2014 (01-07)
  4. ↑ German Energy Blog German Feed-in Tariffs 2014 (from 08)
  5. ↑ 5.0 5.1 HM Treasury (2006). Stern Review on the Economics of Climate Change p. 367.
  6. ↑ German Energy Blog BDEW: Renewables Account for Record 28.5% of Gross German Electricity Consumption in First Half of 2014, BDEW, [1] Erneuerbare Energien erreichen neuen Rekordwert
  7. ↑ German Energy Blog Some More Figures on German EEG Renewables Generation, Revenues, Surcharge, Payments, and the Special Equalisation Scheme
  8. ↑ German Energy Blog German Renewables Surcharge Increases by 19% to 6.24 ct/kWh in 2014
  9. ↑ Facts about solar PV (in German), pages 29-30
  10. ↑ Facts about solar PV (in German)
  11. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  12. ↑ BMU: Germany: Feed-in tariffs 2013
  13. ↑ EEG 2009 modifications Bundesverband Solarwirtschaft. 2 Feb 2011.
  14. ↑ EEG 2010 modifications Bundesverband Solarwirtschaft. 2 Feb 2011.
  15. ↑ EEG 2011 modifications Bundesverband Solarwirtschaft. 2 Feb 2011.

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