European Roundup: Germany's Solar Tally, Italy's FIT Reduction, France's Wind Investment

Photovoltaic solar installations in Germany in the first half of 2010 are estimated at 3 gigawatts (GW), according to Germany Trade and Invest, an agency of the German government.

In 2009, Germany accounted for approximately one of every two newly installed modules worldwide, with total installations totaling 3.8 GW for the entire year.

The boom in German installations has been driven by upcoming reductions to the nation’s feed-in tariffs (FITs) for solar power. Project developers have been working overtime to finish projects in time to reap higher incentives. As a result, high demand for solar modules has carried the global solar industry over the last nine months.

Amendments to the PV feed-in tariffs (FITs) in Germany’s Renewable Energies Act (EEG) were passed in early July and a further adjustment to the FITs will take effect Oct. 1. The changes mark a further shift toward the rooftop segment by abandoning field installations on cropland and increasing the attractiveness of the self-consumption bonus for small- and medium-scale rooftop installations.

The FIT rates were reduced by 13% for rooftop installations and eliminated for cropland field installations beginning July 1. At the same time, conversion areas saw a reduction of 8%, and all other areas were decreased by 12%. Beginning Oct. 1, these rates will be reduced by a further 3%.

Still, the new tariffs remain highly attractive, with rates ranging from 25.02 eurocents/kWh to 34.05 eurocents/kWh for installations connected before Oct. 1 and 24.26 eurocents/kWh to 33.03 eurocents/kWh for those connected during the remainder of the year.

Italy Cuts FITs, Too

Italy also plans to adjust its national feed-in-tariff (FIT) levels. The new levels will take effect Dec. 31.

Funds allocated to solar electricity generated by open-space systems
with a capacity up to 5 megawatts (MW) will be cut by 9.3%–on average–during the
first four months of 2011, according to EuPD Research.

Incentives for
systems with a capacity of 5 MW and greater will be decreased by 14.2%.
Adjustments for rooftop systems are between 4.75% and 13.28%, depending
on the size of the system. Tariffs will be reduced every four months in
2011.

According to the analysts from EuPD Research, the Italian government has, with the
passing of the new FIT (Conto Energia III), now acted on their responsibility to sustainably
develop the solar market. By capping capacity at 3,000 MW (+ 200 MW BIPV) and
guaranteeing tariffs for an initial period of two years, 2012 and 2013, sufficient scope
for the controlled further development of the market has been provided. At the same
time, an artificially induced “overheating” of the market has been impeded.
 

France Welcomes Wind Power

The French government next month will launch a tender for contracts of 10 billion euros ($12.6 billion) to build 3,000 MW of offshore wind capacity by 2015.

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