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Germany: Your Unlikely World Leader in Solar Power

germany solar leaderThe average day in Germany is cloudy. In fact, Germans see an average of just over 1500 hours of sunshine per year, a bit less than 64 days worth of sunlight. Needless to say, Germany would be one of the last countries you’d expect to be the overwhelming leader in solar energy production. Yet here it is. Germany alone has half of the world’s solar installations and is the third-largest producer of solar cells. Q-Cells, a German company, recently pulled ahead of Sharp as the world’s largest maker of photovoltaic cells. So how did they do it? How could a dreary country like Germany singlehandedly conquer the solar industry?

To find out, one need look no further than the German government’s aggressive renewable energy incentives. In 2000 the Renewable Energy Sources Act was passed, requiring the country’s utility companies to purchase electricity from solar start-ups at rates higher than retail value. Commonly known as feed-in tariffs, these subsidies made it easy for new solar companies to turn a profit. In fact, their profits were pretty much locked in, and companies raced to get started. That’s how in just four years Germany was already responsible for half of solar electricity generated worldwide.

Now, eight years later the country is still going strong. The progressive law is a broad measure attempting to reduce carbon emissions. The goal is to derive a quarter of its power from renewable sources by 2020. They are already ahead of the 12.5%-by-2010 benchmark set by the European Union. Germany already stands tall with 14.2% of its electricity coming from renewable sources.

And the effect of Germany’s solar leadership has resonated globally. Spain, France, Italy, and Greece have installed similar incentive plans. And U.S. states, led by California, have instituted German-inspired incentives such as net metering.

Link: http://solar.calfinder.com/blog/solar-information/germany-your-unlikely-world-leader-in-solar-power/

Assuming the cars charge with 220v, this represents 15 amperes, 30 amperes and around 75 amperes. Most houses will have a 15 amp circuit available - probably you have some appliance plugged into it. Not all that many will have an extra 30 amp circuit, and none have a 75 amp circuit anywhere.

As far as the worries of the power companies: if the greens were serious, they would get behind this. Of course, if you want to reduce our usage of oil, we do need a few new power plants. Nuclear would be best, but even if you try to go full-on green, the eco-nuts will oppose them all. Don't bother asking what they would support - most of them apparently think that power magically comes out of the wall-socket, with no need for nasty things like power plants...

The subsidies for solar/renewable power is so high that they can still make money via diesel generators?

That's a pretty crazy amount of subsidization. Especially if you add a substantial risk penalty for doing something illegal, the cost of the generators, the cost of the fuel, etc...

4.5k MwH is 4.5M Kwh, that's $450k worth of electricity in my area.

Subsidies are up to 10X more than fossil payments?

Going for around 3 cents as a 'low ball', that would be 30 cents a kwh equivalent. Well over a million USD equivalent. Possibly. I could see that, but while it's a substantial fraud case, it's not a game changer, I think.

Right now, solar cells are so expensive, they take something like 15 or 20 years to pay for themselves, so most property owners don't see a big incentive. Lower that price to 10 years or 8 years, or even lower, and suddenly the demand for these things will skyrocket.

The payback period for solar is already under 10 years. New Jersey has a payback period of 1.5 years, "New York and Delaware are next in line with payback in 3-6 years, and California, Maryland, Massachusetts and Wisconsin all tied for fourth at seven years." Of course, if because of this everybody went out and started buying solar energy systems, the cost could go up, higher demand drive prices up. Then again because of economy of scale and competition prices could go down even more.

Falcon

Only because coal is subsidized and it is allowed to pass external costs to others.

If I could pay less than 10k and have a 10 year pay back time

You can pay less than that, you may or you may not find it worthwhile though. And today the payback period is less than 10 years. For residential systems New Jersey has a payback period of 1.5 years. "New York and Delaware are next in line with payback in 3-6 years, and California, Maryland, Massachusetts and Wisconsin all tied for fourth at seven years."

The fact that governments keep trying to shift this cost to individual households tells me that it just isn't worth it.

First, I'd rather taxpayers be subsidized before megacorporations are. What I really want is for the federal government to stop all subsidies and return the money back to taxpayers. Then allow them to decide what they will pay for themselves. As it is now though your electricity from coal and nuclear power is subsidized. Chevron's CEO agrees to lobby with Sierra Club to end coal subsidies. And here's Rep Edward Markey crowing about how My Climate Bill 'Has Huge Subsidies For Clean Coal! Huge!'. In that speech he lists some of the subsidies large power companies including coal and nuclear power get. It comes to tens of billions of dollars. If however you add up all the subsides geothermal, solar, wind and other alternative and renewable energy sources get, it doesn't add up to $! Billion.

Fact is is conventional energy sources are massively subsidized with taxpayer money.

Falcon

At the moment though, you typically get around 2% of the purchase-and-installation cost in payback a year,

No, the payback period is about 7 years, that is after 7 years you're getting "free energy".

Falcon

solar power can, just barely, make sense for an idealist.

Except the payback period in New Jersey is "1.5 years for residential systems. New York and Delaware are next in line with payback in 3-6 years, and California, Maryland, Massachusetts and Wisconsin all tied for fourth at seven years."

Falcon

if you invest in solar panels that generate 10 kWh of electricity on a bright shiny day when they are installed, they will probably only generate 8 kWh after 20 years.

New Jersey Offers Fastest Payback for Solar Systems. "In New Jersey, that wait time is 1.5 years for residential systems. New York and Delaware are next in line with payback in 3-6 years, and California, Maryland, Massachusetts and Wisconsin all tied for fourth at seven years."

Using 7 years, you can almost buy 3 new panel arrays in 20 years. Or using 13 years you'll be on your second set of panels in 20 years.

Falcon