German PV FIT to fall by 1.8%

Feed-in tariffs (FITs) for PV installations in Germany will decline 1.8% each month from May through July, the Federal Network Agency said, as new installations in the country continued to exceeded government targets.

“The elevated extension of PV installations continues,” says agency president Jochen Homann. “Just in March, a mark of 290MW was reached.”

In February, Germans installed 211MW, and in January 274MW of solar power.

The degression will take effect after new installations continued to run above a government-set target corridor of 2.5GW-3.5GW of new capacity annually, but is less than the 2.2% decline in the preceding three-month-period, as overall installations slowed somewhat during the nine months through March to 3.98GW.

The high level of installations for most of last year had prompted a change in legislation that provides  for a faster degression of FITs than previously.

In a bid to control FIT payments, Germany’s government last year adjusted the system, allowing for monthly instead of yearly degression, with the Network Agency announcing monthly reduction figures once every quarter.

If new capacity additions stay within the government’s corridor, degression will be 1% each month, but the percentage is raised if the target band is exceeded.

With the new degression percentages, newly installed small rooftop PV installations with up to 10kW capacity will receive a FIT of €0.1563 ($0.2058) per kWh of electricity produced in May, which will reduce to €0.1507 in July.

Facilities with between 1MW and 10MW capacity will be entitled to €0.1082 per kWh in May, going down to €0.1044 in July.

Newly-built ground-mounted plants of more than 10MW don’t qualify for FITs.