The German Solar Energy Market is biggest in the world and has installed the largest number of solar panels for the last few years. 2012 promises to be no different with Germany again set to the biggest solar market for solar panel manufacturers though Italy would give good competition. The German Solar Subsidy program has been the best in the world unlike the start and stop feed in tariff programs of Spain,Czech,UK,Australia and other places. A stable step in cut of feed in tariffs has helped solar energy prices coming down by more than 50% in the last few years though demand has only increased.
The influx of cheap solar panels from China has let the December 2012 explode to almost 2-3 GW according to the German solar association BSW. The high rates of return of over 10% due to super cheap Chinese solar panels at 80-90c/watt has been the major reason for the explosion in demand which could be the biggest month in Germany ever. While German Solar Market has remained robust as ever,the German solar panel producers like Solon, Sunways have been vanquished with a number of major solar companies failing and getting acquired. The Asian solar companies have been the major beneficiaries of this demand growth in Germany and Europe.
The massive rise in demand will imply that according to the EEG ,t here will be a 15% cut in July 2012 after a 15% cut in January 2011. This would bring the solar FIT prices quite low and provide a restraint to the galloping German solar energy installations which is reaching more than 25 GW .
More information on the German market
German’s Solar Energy Market is the biggest in the world by a fair margin.Germany installed almost 6 gigawatts of solar panels in 2010 taking the total installed capacity to almost 16 GW which is 40% of the world’s total installed solar capacity.Note Germany’s Photovoltaic Solar Electricity now forms almost 10-15% of the total electricity production in the country at peak time.Note Germany’s solar industry got a renewed boost when 7 old nuclear plants were shutdown following Japan’s Fukushima Nuclear Disaster recently.Previously Germany had decided to extend the operating life of its Nuclear Plants despite stiff opposition.Germany Solar Subsidy which is framed under the Renewable Energy EEG law has made Germany one of the world’s leaders in Wind,Solar and Biomass Energy.Germany’s Manufacturing Industry has benefited from the strong domestic market with many of the world’s top solar panel companies located there.Solar equipment,inverters and cell companies are also present in large numbers.Recently Germany amended its Feed in Tariff Law to slowdown the exponential growth in solar panel installations.This is over and above the regular reduction in solar subsidies done each year.
Read more about the German FIT Drama in 2010 and 2011
German solar power installations surged in December as developers rushed to finish projects before subsidy reductions, keeping the market for new facilities powered by the sun near the record achieved in 2010.Developers installed panels with 2 gigawatts to 3 gigawatts in capacity last month, meaning installations for the full year will be near the 7 gigawatts recorded in 2010, the BSW-Solar lobby group said in an e-mailed statement.