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...in March 2011, it was agreed to make up to 24% annual rate reductions a permanent feature... a coalition working group is preparing a proposal with up to 34% annual rate reductions.

For those interested in policy, I detail what the "up to" is about.

The original feed-in law system in Germany had three key points: a guarantee of purchase for 20 years for each installation, a rate for the purchase for that entire period fixed in the year of installation, and an annual degression of the rate for new installations.

For photovoltaic solar cells, a fourth element was added from 2009, in the very first modification in reaction to the unplanned fast growth and price drops: the annual degression rate was made a function of prior year new installations, increasing in steps of 1 percentage point at specified limits.

Actual new installations well exceeded the highest limits set for the 2009, 2010 and 2011 degressions, and (as told in the diary) the one-off degressions in 2010 backfired. So they played with the new installations dependency instead:

  • the base degression rate is now 9%, for an 'ideal' annual new installation rate around 3 GW;
  • at 3.5 GW, 4.5 GW, 5.5 GW, 6.5 GW and 7.5 GW built in the 12 months up to September the previous year, the rate increases in steps of 3% (hence there is a 24% degression above 7.5 GW);
  • at 2.5 GW, 2 GW and 1.5 GW,  the rate decreases in steps of 2.5% (hence there is a 1.5% degression only below 1.5 GW).

What the coalition working group now wants is an increase of the steps at 3.5 GW to 7.5 GW from 3 to 5 percentage points.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Tue May 31st, 2011 at 01:48:15 PM EST
as opposed to what they committed in France, which I am unable to detail because nobody understands it... basically a fixed quota that may be installed in a given year, first in first served, with larger installations needing to tender for the tariff.

It's a shame nobody on the commission that revised the tariff regime read German, or had access to translators or anything.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Wed Jun 1st, 2011 at 10:21:41 AM EST
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