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What to Do in the Wake of German Incentive Cuts?

PHOTON Consulting has released a report largely inspired by expected cuts to Germany’s feed-in tariff solar incentives. Solar Power Markets: Prepare For Impact spends 436 pages discussing what global solar firms and several solar markets must do to mitigate the negative impacts of Germany’s soon-to-shrink market. In essence, it all comes down to diversification.

german solar tariff

In other words, as a solar supplier, to rely on Germany alone as your foundation could be a fatal mistake in the years to come. The best way to survive is to expand into several other “end-markets.” The solar industry will keep on growing, but it won’t be piggybacking on Germany’s world-leading market any longer.

The PHOTON Consulting report outlines 13 emerging and existing solar markets and how firms can build sales channels into those markets. It also discusses why smart companies will diversify into ALL of those markets at every link in the supply chain.

On a side note, I posit that several existing and emerging solar markets would do well to follow in Germany’s footsteps. The success of their feed-in tariff (FIT) could not be more evident. In less than 10 years, one of Europe’s cloudiest countries has grown to become by far the largest solar photovoltaic market in the world. While several European markets, including France and Spain, have or are experimenting with FITs, other major existing markets like China and the United States – both expected to compete over the next few years for dominance in the solar industry – could take off like a bolt of lightning given a reasonable FIT program.

Via PR Newswire

Photo Credit: New York Times

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