Receive FREE Solar Energy
Estimates

Alternative Energy

Solar Blogs

Topics

Germany to See Record Solar Growth in 2009

The feed-in tariffs that propelled Germany into global leadership in solar power continue to show their effectiveness. Despite a global economic recession that stunted solar installations around the world in the first half of the year, Germany will post record growth once again in 2009. According to BSW, Germany’s solar industry association, installed solar capacity could reach as high as 3 gigawatts before the new year.

Last year’s record for installed solar capacity of 1.6 GW has already been surpassed by the 2.5 GW installed this year. So what exactly spurred a sharp spike in photovoltaic (PV) installations in the latter half of the year? It comes down to three main contributors: a recovering economy, the fear that Angela Merkel’s government would scale down tariffs, and even existing feed-in tariffs that pay solar electricity producers more than retail prices for power generated.

It now appears that the German government will do little, if anything, to alter existing feed-in tariff laws, but the threat was enough to ignite a rush to get solar projects up and running as soon as possible. As originally planned, feed-in tariffs will decrease by 10 percent in 2010.

At the end of 2008, Germany had 5.3 GW of solar PV installed, or about one-third of global capacity. Officials are now predicting a final yearly growth of 2.5 to 3 GW, which at best, will result in more than a 50 percent increase. This is positive news for some German companies who have struggled thus far in 2009. Q-Cells, one of the world’s leading solar cell producers, posted third quarter losses, but is feeling good about 2010. The second half surge in production should bolster that feeling of confidence.

Spain commanded solar power growth in 2008 with 2.5 GW installed, but their industry faltered in 2009 because the Spanish government weakened national solar incentives. A tough first half of the year and the fear of repeating Spain’s mistakes likely led to the German government’s at least tentative decision to leave its feed-in tariffs unaltered. A recovering economy combined with protected feed-in tariffs could propel the German solar industry into yet another record year in 2010.

Photo: EnergyUtopia

Close Bookmark and Share This Page

Save to Browser Favorites / Bookmarks