Blogs, Solar

Germany Proposes Dramatic Reductions in PV Feed-in Tariffs

According to the German news source Handelsblatt, Germany’s Economic and Environmental Ministers have come to an agreement on additional reductions to the Feed-in Tariff (FIT) rates here. The Renewable Energy Sources Act already had 15% cuts scheduled for July 1st, but under the new proposal, these would be accelerated to April 1st an increased in magnitude. Small rooftop systems would see a 20% reduction, while large ground-mounted systems would see their FIT rates cut by 30%.

At the same time, only 90% of electricity production would be eligible for FITs (or even less, for applications such as small residential systems). The remaining electricity could be used onsite, or sold on the spot market. For those installations without significant onsite demand during the day, this effectively reduces FIT rates even further.