Apricum statement regarding Germany's solar incentive policy

Events

In the process of sorting out their political goals shortly before coming into power the new governing parties CDU and FDP have announced their plans for amendments to the German PV incentive policy.

Apricum Managing Partner Nikolai Dobrott states, that the feed-in-tariff implemented since 2004 proved to be an excellent tool for the development of a highly successful solar industry in Germany. “In other countries the German incentive policy is seen as a role model.” he explains “But now the time has come to consider adapting the policy to the current market development. “

Spiegel recently published an online article titled, “Gabriel`s solar policy leaves billions of debt”, which claims that the solar incentives allotted by the grand coalition will cost German taxpayers approximately € 27 billion in the long run. Consumers will bear these costs throughout the next 20 years, as this is the time frame for which the remuneration for solar electricity is legally guaranteed. At the same time the results are said to be marginal – solar energy only accounts for one percent of the German electricity production.

“I disagree with the Spiegel article and strongly advise against a sweeping dismissal of the German solar incentive policy” says Dobrott.  “The economic goal in the mid- 90s was to install an internationally competitive and future-proof industry in a county focused on exports and characterized by high wage levels. At the same time the industrial infrastructure in the region of the former Eastern Germany was to be improved. To this day, these goals have been successfully implemented. Germany has chosen the right strategy with its subsidies defined in the renewable energy law (EEG). It has granted excellent start-up conditions to an industry with an enormous mid- and long-term potential. Simply put, investing in markets with high growth potential is a successful entrepreneurial strategy.”

Please click here to view the complete press release as PDF file.