Surge in Demand for German Solar Energy Investments as Feed-in Tariff Reduction Approaches
The solar energy world leader (as seen on the BBC), Germany, is now seeing a surge in demand for Solar Energy Investment as the deadline by which to ‘plug in’ before the cut in the feed-in tariff (FIT) looms.
As reported in Reuters (citing a parliamentary source), a cut of up to 16% is anticipated for most solar photovoltaic installations from the first of July 2010, therefore reducing the incentive for investors.
Solar photovoltaic (PV) panel makers have been inundated with orders not only from domestic homeowners but also from businesses and investment groups with larger roofspaces and solar panel installers have been working around the clock to fit the panels in time before the reduced tariff is activated.
Experience International MD ‘Steven Worboys’ who are exclusive marketing partners, for the first time in the UK, Solar Panel investment in Germany, stated,
“With the first of July deadline fast approaching we are sourcing additional roofspace in order to meet the serious demand for solar energy investments in Germany. UK investors are aware that ‘plugging in’ by this date will mean higher returns across the next twenty years.”
The FIT which was 1st introduced into Germany in 1990 and requires utilities to connect renewable energy generators to the grid and buy the electricity produced at a rate of 65-90% of the average tariff charged per unit to consumers.
The model has been extremely successful in helping the evolvement of the renewable energy industry that is has been implemented all across the world, including the UK.
However, some twenty years later, the German government has decided that the feed-in tariff, currently at 32 – 43 eurocents/kWh, is over-subsidizing the renewable energy industry and costing the consumer too much (8.95 Billion Euros in 2008) and so the FIT rate is to be cut. The fall of up to a third in the cost of manufacture of solar panels and the increase in lower cost imports, especially from China, also were also an influence in the decision.
By their very design FITs are intended to reduce over time and the cut is not unexpected, even if the double-digit nature is thought of as somewhat severe by some.
But as Steven Worboys concludes:
“The feed-in tariff has played a major part in evolving Germany into the largest and most successful solar energy producer in the world. It has installed 9 GW of PV capacity with government targets for 66 GW by 2030. The industry has a turnover of some €1.7 billion per annum, employs 20,000 people and analysts anticipate that solar energy can supply 25% of Germanys electricity by the year 2050.”
With this clear progress to date and new government targets for renewable energy production being made, the imminent cut in FITs is certainly not the end of Germany’s solar success story and the success and growth of Solar power as a leading Alternative Energy Investment. You still have a window of opportunity to invest and benefit from returns of €21.501 net income in Year 1 and 17% net ROI for years 1 – 20.
For more information about ‘plugging in’ before 1st July 2010 contact the exclusive marketing partners as soon as possible, Experience International on +44 (0) 207 321 5858 or visit Experience-International.com.
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