Region: Europe and Central Asia
Sectors: Energy and Power
Keywords: Renewable Energy
In Germany, FiTs were a key element of the RE incentive scheme for many years and led to the major growth of solar PV (42.39 GW installed solar capacity in 2017).
Feed-in tariffs (FiTs) set by the regulator and similar instruments used to be the preferred regulatory mechanism globally to boost deployment of solar PV through private investment as they provide a stable and predictable policy environment. FiT guarantee the purchase of generated RE under long-term contracts at a tariff set by the regulator and are often combined with facilitated grid access and dispatch. In Germany, FiTs were a key element of the RE incentive scheme for many years and led to the major growth of solar PV (42.39 GW installed solar capacity in 2017). Based on the German Renewable Energy Law , the system guarantees RE producers an attractive fixed return on investment that now decreases at regular intervals over a period of 20 years. It mandates priority grid access and dispatch and is financed by consumers through their electricity bill.
Updated: March 20, 2021