As of 1 April 2000 a nation-wide buy-back tariff of 0,99 DEM/kWh for PV generated electricity has been available in Germany

The new rates form part of the Renewable Energy Law (REL), which has established buy-back terms for electric power generation from all renewables. The broad objective of the law is to double the contribution of renewables to Germany's power mix from 5% in 1999 to 10% in 2010, and to contribute towards bringing the cost of renewable generation in line with that of conventional methods in the medium to longer term.

For PV the new buy-back rate can be combined with favourable loans available under the 100 000 roofs programme. This stimulated unprecedented interest - and considerable disarray - in the rooftop programme in the run-up to the launch of the REL. Nearly 10500 applications to the programme were submitted during March - some 6500 more than during the whole of 1999. This was largely due to the widespread understanding that the ten-year zero-interest loan available under the rooftop scheme was to be replaced with somewhat less favourable terms, in order to ensure that the programme remained within budget.

The programme was temporarily halted shortly after the REL launch to prevent further applications being made until the new loan conditions were defined. The rooftop initiative is now in operation again with revized installation targets and modified low-interest loan conditions in place. Whereas the original programme was scheduled for six years (1999-2004), the added benefit of the REL buy-back rate means that the same PV installation target of 300 MWp now seems likely to be achieved by the end of 2003.

Under the REL, acceptance of renewably generated electricity is obligatory for the local distributors and transmission grid operators. The scheme is funded through a small premium added to the general electricity tariff (equivalent to 0,001 DEM/kWh) payable by every electricity purchaser throughout the country. As of 2002, the buy-back rate payable for new installations will be reduced by 5% per year in order to encourage cost-convergence with conventional generating technologies.

Information

• Peter Sprau, WIP
  Fax: +49 (0)89 720 1291

[ Top ] [ Next article in PV Power ] [ Next article in PV Power ]