Germany has a FIT law.
The new German Renewable Energy Sources Act 2009 entered into force on 1st January 2009.
Feed-in tariffs in Germany are based on the generation cost approach. As of 2009, wind power producers receive a tariff payment of 5.02 to 9.2 €cent/kWh, offshore wind 3.5 to 13 €cent/kWh, solar power 31.94 to 43.01 €cent/kWh, geothermal 10.5 to 16 €cent/kWh, biogas and biomass 6.16 to 11.67 €cent/kWh, hydro power 3.5 to 12.67 €cent/kWh.
As the share of renewable electricity is constantly increasing, the new feed-in tariff scheme of 2009 obliges all renewable electricity producers with an installed capacity of more than 100 kW to be able to remote-control power output.
The new scheme also enables power producers to sell their electricity on the spot market. In order to gain experience on the conventional power market, producers can shift between the fixed feed-in tariff option and market sales on a monthly basis. A premium feed-in tariff scheme has not (yet) been implemented.
Large-scale biomass plants (more than 5 MW installed capacity) are only eligible with combined heat and power generation technology.
Tariff degression applies to all technologies. The degree of tariff degression, i.e. annual reduction of tariffs, depends on the maturity and the existing cost reduction potential. In the case of solar PV, the new FIT scheme includes flexible tariff degression, i.e. the degression rate depends on the actual market growth.
Tariff payment is generally guaranteed for a period of 20 years. Only in the case of hydro power, the duration of tariff payment was reduced to 15 years.
Read a summary of the European Commission’s 2005 review of Germany’s renewable electricity policies and of its 2007 assessment of Germany’s progress in meeting the target set out in Directive 2001/77/EC.
Read a legal analysis of the German law.
Germany is a member of the international Feed-in Cooperation
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