Photovoltaic in Germany: record figures for 2011
The German Federal Network Agency (Bundesnetzagentur - BNetzA) has reported that 7500 MWp were connected to the grid in 2011, an outcome that surpassed all expectations of the previous months by 1.6 GWp. An increase was recorded especially in December 2011 - as a result of the installation of about 3 of the total 7.5 GWp -, an acceleration probably due both to the price collapse recorded in the last months and to the expected reduction by 15% in incentives as from the 1st of January 2012.
As for the strong decrease in prices, the German Solar Association (Bundesverband Solarwirtschaft e.V. - BSW-Solar), has pointed out how the increase in the number of installations on the German territory was strictly related to the significant material cost reduction. Indeed, in Germany decreases were higher than incentive cuts and, more in general, costs decreased much more than it occurred in other countries. A strong market competition led manufacturers to implement a much more competitive strategy, thus implying a reduction of prices in order to maintain their market shares.
As far as the incentive cuts are concerned, a further reduction is expected in Germany as for July 1st, but as reductions are related to the exceeding of specific thresholds, the implementation of this rule shall depend upon the trend of the installed base during the first months of 2012.
The German solar industry is currently troubled by another problem which could disrupt the market, i.e. the proposal - made by Germany's Economics Minister Philipp Roesler during the last weeks - of introducing an annual 1000 MWp threshold for incentives. If this proposal was approved, the major PV market worldwide might suffer a setback from which it would be difficult to recover.