The German government finalized the FIT reduction program

The discussion about reducing FIT shrouded over Germany like a cloud. The argument finally dispelled the clouds and saw the sun. Both sides of German Bundestag and Bundesrat have reached a compromise. Merkel government claims that they will deserve development space for the photovoltaic industry and ensure the new installation capacity for 2.5 to 3GW. The maximum total subsidy is 52GW. The government will further clarify the classified standard of medium-sized projects and roof systems. All the subsidy plans will be calculated from April,1st, 2012.


90% generating capacity of the roof PV systems from 10 to 40kW can enjoy 0.185euro/kW FIT. The tax rate will be carried out from January, 2014. The subsidy amount of 10MW photovoltaic program keeps unchanged.


EuPD research reported that the installation of PV system from 10 to 40kW in 2011 is totally 1.8GW, which occupied 1/4 of the whole market. They predict that the system of this scale will still hold a considerable market share this year. The installation of the first quarter has been 600MW.


While Jefferies said, ‘ Although the rate of return is lower, the cheap financing provided by the German Bank for Reconstruction make the market still attractive. The price of PV system may further reduce. Considering of the present pv inverter market environment, we’ll continue to be optimistic with the solar industry, which the pv inverter manufacturers is superior to module manufacturers.


The German government also decided to invest 50 billion of Euro to carry out the R&D program of energy storage technology. The plan is expected to be started from January, 1st, 2013.

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