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Solar PV Market Germany Versus USA
Solar PV Market Germany Versus USA
Germany
versus
USA
US PV market
U.S.A. Conclusions
Outlook
Bureaucracy
Challenges Regulatory Environment
Federal Resources
Source: www.recurrentenergy.com
German PV market
Advantages
-> FIT was a very suitable model to jump-start the German PV industry
-> FIT not sustainable business model in the long run because it is too
expensive
-> Future financial burden for German customers
-> Current grid is limited: Smart grid technologies necessary in the
future for further growth
-> Intelligent storage technologies needed for off-grid installations
German PV Market
-Outlook:
-After the January FIT decrease, the German parliament finally voted in an additional
decrease last July
-16% decrease for rooftops, 11% for reconversion areas, 15% for the other installations
-No more feed-in tariff for PV installations on agricultural land; the new law is expected
to considerably affect the market in the coming years.
-Market could stabilize in the 3 to 5 GW annual installations level by 2014, if the present
support scheme is maintained, with
adequate FIT decreases in line with the expected price decrease.
US PV Market
-USA has started to become one of the top PV markets
-477 MW installed in 2009; 40 MW of which are coming from off-
grid installations
-State of California leading the pace in 2009
-2010 could see the market rise from 600 MW to a possible 1 GW of
new installations.
-By 2014, the market could reach 3 GW installed (moderate
scenario)
-Policy-Driven scenario up to 6 GW could be installed
-Depending on market response to incentives in different states
US PV Market
The EPIA Global Market Outlook for Photovoltaics (PV) from 2010 to 2014
US PV Market
Source: www.recurrentenergy.com
US PV market
Advantages
USA
Germany
The US has better natural solar
resources
Germany jump started the solar
economy
Grid parity reached earlier due to
more sun exposure
High market penetration already
reached. Market growth will slow
U.S. peak demand will increase 17.7%
by 2017 according to NERC down due to lower state
incentives
California:
Low Cost per kWh $0.17 (residential and commercial)
High Cost per kWh $0.22 (residential and commercial)
Source: SGC
Residential electricity rates USA
Grid parity influencers
-Grid parity is the point at which alternative means of
generating electricity is equal in cost, or cheaper than
grid power
-DSIRE lists a total of 616 Federal State, Utility and Local Financial
Incentives for Solar
- 518 Incentives for PV
Energy Star:
-
http://www.energystar.gov/
Federal Business Opportunities:
-https://www.fbo.gov/
US Department of Energy:
-http://www.energy.gov
EPA:
- http://www.epa.gov/
Global Solar Outlook
-Currently 20 GW installed
-30-35 GW installed by the end of the year
-Plunging prices of solar modules
-Europe is still leading the market with installations (Germany and Italy)
-47 countries have FIT but danger of Solar market bust in countries with FIT
-US, China, India, Japan and France will experience significant growth
-By 2015 cumulative solar capacity will have reached 65-100GW or more
- Demand for PV systems is still heavily dependent on the general economic
climate and most importantly on governments’ support schemes.
-
Thank you!
Questions and discussion