Can Germany do for storage what it did for solar? Country ponders subsidy


By: SGN Staff


Quick Take: Germany is often credited for a "solar miracle." Even though it's a cloudy country, it is a world leader in solar energy thanks to a generous feed-in tariff that lasted for years. The mechanism promises long-term contracts at above-market rates for solar producers. As a result, thousands of solar installations were put up. Germany is credited for helping bring down the prices of solar systems in the early years, since the country provided enough business that economies of scale began to kick in.

Could Germany's proposed storage subsidy have the same effect?


I always fear subsidies because they distort the market and create a boom/bust cycle. Boom while the subsidy lasts, bust as soon as it's over. But maybe this is what the market needs to get over the hump and go mainstream. - By Jesse Berst


May 1 is the day a long-promised storage subsidy will be formally proposed in Germany. According to a story in The Energy Collective, those who install storage will be granted a 30% subsidy. The program will apply to distributed solar installations with a maximum size of 30 KW. The installations must meet a series of other requirements.


While details of subsidy terms are to be explained when the program is announced, some of those requirements are that the batteries are required to have a warranty of seven years or more and that the solar plant delivers 60% of its output to the grid over the life of the installation.

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