The decline overall in Europe’s PV market in 2012 hides various realities at national level; the market evolution was very different from one country to another. Even in Germany, the apparent market stability is the result of a chaotic evolution, due to regulatory changes and hectic responses from investors. Germany has seen three consecutive years with a roughly stable 7.4-7.6 GW of connections, leading to a total installed capacity in the country of a record 32.4 GW. This was accompanied by a progressive evolution in market dynamics, with 2012 showing PV gradually becoming self-sustainable. With PV’s Levelised Cost of Electricity (LCOE) now lower than the price of retail electricity, at least in the residential and commercial segments in Germany, PV development can be at least partially driven by self-consumption rather than only FiTs.

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