FUNDINGNEWS
iSuppli says Germany will create
slow down with subsidy cuts
Germany’s decision to slash subsidies on market will overheat during the first three only 9 percent of global installations.
certain types of solar installations will months of the year and then collapse
result in a dramatic demand reduction during the next three months.” “The massive oversupply and downturn
and price plunge in the country for seen in the global solar cell industry in
photovoltaic (PV) panels and systems in German solar installations will surge 2009 was largely due to Spain’s decision
the second quarter, according to iSuppli. during the first quarter, starting at 200 to change its FIT policies, which led to a
Megawatts (MW) in January and then collapse in demand,” Wicht said.
The German government last week rising to 300MW in February and 500MW “Germany’s move could have similar
preannounced plans to reduce its in March. However, installations will impact on the global solar market during
subsidies (FITs) for new roofs and open- plunge to 50MW in April and remain at the second quarter of 2010.
Issue I 2010
field sites installed after April 2010 by 16 the 100MW level in May and June.
percent and 17 percent, respectively. However there is a major difference: the
“As a result of the decline in installations, German FIT does not limit the size of
This reduction is on top of a just- solar system prices in Germany could solar installations, whereas the Spanish
implemented, pre-planned, Feed-in Tariff decline by 7.5 percent from April through FIT restricts installations to 400MW to
(FIT) reduction of 9 percent for smaller the end of 2010, compared to the 5 500MW per year. Assuming that solar
rooftops and of 11 percent for large percent rate of decline,” Wicht said. system prices will drop more, installations
-pv-management.com rooftops and ground installations. This in Germany will have an opportunity to
announcement is dramatic compared to The German government was prompted recover, unlike in Spain.”
.solar
the 5 percent to 10 percent decrease that to reduce its FIT because solar system
www
had been expected. prices declined more than expected in Conditions in the German market will
2009 due to the country’s aggressive recover in the third quarter as lower
12
“Germany’s decision to cut its solar subsidies during the year. prices lure consumers and as consumers
subsidies in the second quarter will make decide to buy before a further FIT
installations less attractive for the With Germany being the world’s largest reduction in 2010.
country’s consumers,” said Dr. Henning market for solar installations - Germany
Wicht, senior director and principal accounted for 51 percent of global solar After holding steady at 100MW in July
analyst for iSuppli. “Because of this, system installations in 2009—its FIT (which is only one-fourth of the
German consumers will rush to make reductions could have a worldwide installations forecasted in March),
solar installations in the first quarter and impact. To put the size of Germany’s installations will rise steadily until
then stop in the second quarter. As a domination into perspective, the second- November when they could reach as high
result, iSuppli anticipates the German largest solar nation, Italy, accounted for as 400MW.
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