German Policy Could Make Solar in America "Wunderbar" | john-farrell-ilsr
After a significant step-down this month, revisions to the German feed-in tariff will require utilities to buy electricity from solar projects 10 kilowatts or smaller for 19.5 euro cents per kilowatt-hour (kWh) on a 20-year contract. Larger projects (over 1 megawatt) will get just 13.5 euro cents per kWh. Using insolation data for Munich, these prices translate to installed costs of approximately $2.24 and $1.55 per Watt, respectively.
The Germans are debating significant revisions to their landmark renewable energy policy, and instead of declaring the death of the German solar market, Americans should focus on why solar still costs so much on this side of the Atlantic.
After a significant step-down this month, revisions to the German feed-in tariff will require utilities to buy electricity from solar projects 10 kilowatts or smaller for 19.5 euro cents per kilowatt-hour (kWh) on a 20-year contract. Larger projects (over 1 megawatt) will get just 13.5 euro cents per kWh. Using insolation data for Munich, these prices translate to installed costs of approximately $2.24 and $1.55 per Watt, respectively.
For comparison, in the U.S. in the 3rd quarter of 2011 the average installed cost of solar was $5.20 per Watt with residential-scale projects costing $6.40 per Watt.
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