Vortrag
Responsive Feed-in Tariff Adjustment to Dynamic Technology Development

Thilo Grau


28th Annual Congress of the European Economic Association : EEA 2013
Göteborg, Schweden, 26.08.2013 - 30.08.2013



Abstract:
This paper reviews the adjustments of the feed-in tariff for new solar photovoltaics (PV) installations in Germany. As PV system prices have declined rapidly since 2009, the German government implemented automatic mechanisms to adjust the support level for new installations in response to deployment volumes. This paper develops an analytic model to simulate weekly installations of PV systems up to 30 kW (31% market share in 2011) based on project profitability and 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.

Abstract

This paper reviews the adjustments of the feed-in tariff for new solar photovoltaics (PV) installations in Germany. As PV system prices have declined rapidly since 2009, the German government implemented automatic mechanisms to adjust the support level for new installations in response to deployment volumes. This paper develops an analytic model to simulate weekly installations of PV systems up to 30 kW (31% market share in 2011) based on project profitability and 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.

Themen: Energiewirtschaft



JEL-Classification: O30;O31;Q42;Q48;C60
Keywords: feed-in tariff, photovoltaic, renewable deployment
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