Horizons- July 2013

Posted on August 6, 2013 by

Solar energy is a relatively new entrant on India’s renewable energy horizon. While large, grid connected projects have come up in significant capacity in the last year, small scale solar power is only beginning now. The experience of major countries like the USA and Germany proves that small scale solar is an attractive opportunity for consumers as well as solar power equipment manufacturers.

Germany is one of the earliest countries to promote renewable energy. It has an ambitious target to source 35% of its total energy from RE sources by 2020. Germany has promoted distributed solar energy generation through its Feed-in-Tariff (FiT) program since 1990. Under this program, developers sell solar power to local DISCOMS for 20 years. In 2012, the country had more than 30% of the installed solar capacity in the world1. It sourced about 4.7% of its total energy from solar energy installations in 2012.

Germany focused early on creating a large market for small scale solar projects. For this, attractive tariffs were provided to developers. As a result there were about 1.3 million installations with total capacity 32 GW in the country by the end of 2012. With achievement of scale, FiT for new power projects has fallen from € 0.51 per kWh in 2000 to about € 0.15 per kWh in 2013. This price is below the retail consumer tariffs in Germany. To promote competition and efficiency, market based pricing of solar energy has been introduced in 2012.

Various agencies have contributed to success of solar power. Deutsche Energie-Agentur GmbH (DENA, the German Energy Agency), coordinates with various stakeholders including public, market players and Government. The German federal government passed its Renewable Energy Law with the help of DENA to promote renewable energy sources in the country.

RE Capacity-Germany

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