The industry is optimistic mainly because of the drop in the solar PV costs. According to Bundesverband Solarwirtschaft (BSW), they have dropped by 15% in the last two years. BSW warns, however, that costs must continue dropping in order for the industry to offer reasonable returns to investors.

Everything indicates that this trend will continue.

According to the new conditions, the feed-in tariff will drop by 8% annually, from 5% at the moment. For example, one plant connected to the grid in 2008 would receive 430 eur per MWh, from a former subsidy of 468 eur / MWh. Analysts expect that this drop will not substantially affect investments in the solar PV industry, which are expected to amount to 1.8 billion euros this year.

For additional information: 

www.bsw-solar.de