Assessment and Further Development of the Renewable Energy Act

Department(s)/ Research Infrastructure
Climate Policy
Project Status
Completed Project
Project Duration
since/from 2011 to 2014
Commissioned by
Core budget and PhD Funding via Climate Policy Initiative
Project Manager
Thilo Grau
Project Team/Contacts at DIW Berlin

Project description

This project reviewed the adjustments of the feed-in tariffs for new solar photovoltaic (PV) installations in Germany. As PV system prices declined rapidly since 2009, the German government implemented automatic mechanisms to adjust the remuneration level for new installations in response to deployment volumes. The project developed an analytic model to simulate weekly installations of PV systems of up to 30 kW based on project profitability and project duration. The model accurately replicates observed market developments and is used to assess different adjustment mechanisms against multiple scenarios for PV system price developments. The analysis shows that responsive feed-in tariff schemes with frequent tariff adjustments and short qualifying periods reach deployment targets most effectively.

Academic Publication

DIW Economic Bulletin