See also
- Energiewende in Germany
- German Renewable Energy Sources Act, also known as the EEG
Feed-in electricity tariffs (FiT) were 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 remuneration (a "tariff") above the retail or wholesale rates 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 ¢/kWh (4.4 ¢/kWh) for hydropower facilities over 50 MW to 12.88 ¢/kWh (17.3 ¢/kWh) for solar installations on buildings up to 30 kWp and 19 ¢/kWh (25.5 ¢/kWh) for offshore wind. [3]
On 1 August 2014, a revised Renewable Energy Sources Act or EEG (2014) (colloquially called EEG 2.0) entered into force. The government will now stipulate specific deployment corridors to control the uptake of renewables and the feed-in tariffs themselves will be determined by auction. [4] : 7
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 9.53 ¢/kWh in 2005 (compared to an average cost of displaced energy of 4.7 ¢/kWh). In 2004, the total level of reallocated EEG surcharges was €2.4 billion, at a cost per consumer of 0.56 ¢/kWh (3% 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 ¢/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 ISEestimates, that only about 30% 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]
The feed-in tariff system has been modified frequently. The feed-in tariff, in force since 1 August 2004, was modified in 2008. [10] 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. [11] Another 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. [12]
| Type | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | July 2010 | October 2010 | 2011 | January 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Rooftop-mounted | up to 30 kWp | 57.40 | 54.53 | 51.80 | 49.21 | 46.75 | 43.01 | 39.14 | 34.05 | 33.03 | 28.74 | 24.43 |
| above 30 kWp | 54.60 | 51.87 | 49.28 | 46.82 | 44.48 | 40.91 | 37.23 | 32.39 | 31.42 | 27.33 | 23.23 | |
| above 100 kWp | 54.00 | 51.30 | 48.74 | 46.30 | 43.99 | 39.58 | 35.23 | 30.65 | 29.73 | 25.86 | 21.98 | |
| above 1000 kWp | 54.00 | 51.30 | 48.74 | 46.30 | 43.99 | 33.00 | 29.37 | 25.55 | 24.79 | 21.56 | 18.33 | |
| Ground-mounted | conversion areas | 45.70 | 43.40 | 40.60 | 37.96 | 35.49 | 31.94 | 28.43 | 26.16 | 25.37 | 22.07 | 18.76 |
| agricultural fields | 45.70 | 43.40 | 40.60 | 37.96 | 35.49 | 31.94 | 28.43 | — | — | — | — | |
| other | 45.70 | 43.40 | 40.60 | 37.96 | 35.49 | 31.94 | 28.43 | 25.02 | 24.26 | 21.11 | 17.94 | |
| Installations on agricultural fields were removed under the PV Act (2010). | ||||||||||||
The support duration is 20 years plus the year of project commissioning, 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.
As of July 2014, feed-in tariffs for photovoltaic systems range from 12.88 ¢/kWh for small roof-top system, down to 8.92 ¢/kWh for large utility scaled solar parks. Also, FiTs are restricted to PV system with a maximum capacity of 10 MWp. The feed-in tariff for solar PV is declining at a faster rate than for any other renewable technology. [14]
| 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 [16] !! 100% !! 90% !! 90% !! 100% !! 100% | |||||||
On 1 August 2014, a revised Renewable Energy Sources Act entered into force. Specific deployment corridors now stipulate the extent to which renewable energy is to be expanded in the future and the funding rates (feed-in tariffs) gradually will no longer be fixed by the government, but will be determined by auction. Wind and solar power are to be targeted over hydro, gas (landfill gas, sewage gas, and mine gas), geothermal, and biomass. In late 2015, this new scheme is being tested, as a pilot project, for ground-mounted PV installations. [4] With the Renewable Energy Sources Act (2017), auctions will become commonplace for new installations also for most other types of renewables.
Photovoltaics (PV) is the conversion of light into electricity using semiconducting materials that exhibit the photovoltaic effect, a phenomenon studied in physics, photochemistry, and electrochemistry. The photovoltaic effect is commercially used for electricity generation and as photosensors.
Microgeneration is the small-scale production of heat or electric power from a "low carbon source," as an alternative or supplement to traditional centralized grid-connected power.
Many countries and territories have installed significant solar power capacity into their electrical grids to supplement or provide an alternative to conventional energy sources. Solar power plants use one of two technologies:
Renewable energy in Germany is mainly based on wind and biomass, plus solar and hydro. Germany had the world's largest photovoltaic installed capacity until 2014, and as of 2023 it has over 82 GW. It is also the world's third country by installed total wind power capacity, 64 GW in 2021 and second for offshore wind, with over 7 GW. Germany has been called "the world's first major renewable energy economy".
Solar power accounted for an estimated 12.2% of electricity production in Germany in 2023, up from 1.9% in 2010 and less than 0.1% in 2000.
Financial incentives for photovoltaics are incentives offered to electricity consumers to install and operate solar-electric generating systems, also known as photovoltaics (PV).
Solar power has a small but growing role in electricity production in the United Kingdom.
A feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies by offering long-term contracts to renewable energy producers. This means promising renewable energy producers an above-market price and providing price certainty and long-term contracts that help finance renewable energy investments. Typically, FITs award different prices to different sources of renewable energy in order to encourage the development of one technology over another. For example, technologies such as wind power and solar PV are awarded a higher price per kWh than tidal power. FITs often include a "digression": a gradual decrease of the price or tariff in order to follow and encourage technological cost reductions.
A photovoltaic system, also called a PV system or solar power system, is an electric power system designed to supply usable solar power by means of photovoltaics. It consists of an arrangement of several components, including solar panels to absorb and convert sunlight into electricity, a solar inverter to convert the output from direct to alternating current, as well as mounting, cabling, and other electrical accessories to set up a working system. Many utility-scale PV systems use tracking systems that follow the sun's daily path across the sky to generate more electricity than fixed-mounted systems.
Feed-in tariffs in Australia are the feed-in tariffs (FITs) paid under various State schemes to non-commercial producers of electricity generated by solar photovoltaic (PV) systems using solar panels. They are a way of subsidising and encouraging uptake of renewable energy and in Australia have been enacted at the State level, in conjunction with a federal mandatory renewable energy target.
Grid parity occurs when an alternative energy source can generate power at a levelized cost of electricity (LCOE) that is less than or equal to the price of power from the electricity grid. The term is most commonly used when discussing renewable energy sources, notably solar power and wind power. Grid parity depends upon whether you are calculating from the point of view of a utility or of a retail consumer.
Solar power in Japan has been expanding since the late 1990s. The country is a major manufacturer and exporter of photovoltaics (PV) and a large installer of domestic PV systems, with most of them grid connected.
The Renewable Energy Sources Act or EEG is a series of German laws that originally provided a feed-in tariff (FIT) scheme to encourage the generation of renewable electricity. The EEG 2014 specified the transition to an auction system for most technologies which has been finished with the current version EEG 2017.
Solar power in Greece has been driven by a combination of government incentives and equipment cost reductions. The installation boom started in the late 2000s with feed-in tariffs has evolved into a market featuring auctions, power purchase agreements, and self-generation. The country's relatively high level of solar insolation is an advantage boosting the effectiveness of solar panels; within Europe, Greece receives 50% more solar irradiation than Germany.
A feed-in tariff (FIT) is paid by energy suppliers in the United Kingdom if a property or organisation generates their own electricity using technology such as solar panels or wind turbines and feeds any surplus back to the grid. The FIT scheme was imposed on suppliers by the UK government, and applied to installations completed between July 2009 and March 2019.
The electricity sector in Switzerland relies mainly on hydroelectricity, since the Alps cover almost two-thirds of the country's land mass, providing many large mountain lakes and artificial reservoirs suited for hydro power. In addition, the water masses drained from the Swiss Alps are intensively used by run-of-the-river hydroelectricity (ROR). With 9,052 kWh per person in 2008, the country's electricity consumption is relatively high and was 22% above the European Union's average.
A photovoltaic power station, also known as a solar park, solar farm, or solar power plant, is a large-scale grid-connected photovoltaic power system designed for the supply of merchant power. They are different from most building-mounted and other decentralized solar power because they supply power at the utility level, rather than to a local user or users. Utility-scale solar is sometimes used to describe this type of project.
Solar power in France including overseas territories reached an installed capacity figure of 11.2 GW in 2020, and rose further to 17.1 GW at the end of 2022. Government plans announced in 2022 foresee solar PV capacity in France rising to 100 GW by 2050.
Solar power in Mexico has the potential to produce vast amounts of energy. 70% of the country has an insolation of greater than 4.5 kWh/m2/day. Using 15% efficient photovoltaics, a square 25 km (16 mi) on each side in the state of Chihuahua or the Sonoran Desert could supply all of Mexico's electricity.
Solar power in Switzerland has demonstrated consistent capacity growth since the early 2010s, influenced by government subsidy mechanisms such as the implementation of the feed-in tariff in 2009 and the enactment of the revised Energy Act in 2018. By the end of 2023, solar photovoltaic (PV) capacity had reached 6.4 GW, a notable increase from the 0.1 GW recorded in 2010. Concurrently, the share of solar power in electricity generation has also increased, climbing from 0.1% in 2010 to 5.9% in 2023.