Dark clouds ahead for the German solar industry as the government’s July 1 cuts in the solar feed-in tariff (FiT) are expected to touch off a decline in pricing and internal rate of return (IRR). However, “gray skies are gonna clear up” four-to-six weeks after that, say PGR Experts, with prices readjusting and the solar industry back to business as usual.

Between 70-80% of Germany’s photovoltaic (PV) market is represented by small and medium sub-1 mW solar PV systems. Post cuts, we expect prices of components to fall by another 10-15%. This would cut current IRR of these systems from 10-12% down to 6-9%, which is still quite attractive for the rooftop market. Price cuts by wafer and polysilicon vendors also factor into pricing readjustments. Good quality, vertically integrated Chinese module brands should easily adjust to these changes.

PGR’s network expects demand will peak in Germany in Q4 of this year.

Tweet This Post   

Tags: feed-in-tariff, FiT, Gernan Solar Industry

This entry was posted on Thursday, March 18th, 2010 at 5:10 pm and is filed under Energy, Ishita Manjrekar, Solar. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.