The German National Solar Energy Association (BSW) announced yesterday that Germany's solar power generation surged by 60% in 2011, reaching 18 billion kilowatt-hours (kWh), accounting for more than 3% of the country's total electricity generation. Reuters reported that this solar power generation is enough to meet the electricity needs of approximately 5.1 million households, about one-eighth of the total household electricity consumption in Thuringia.
German solar photovoltaic (PV) manufacturers faced pressure from an oversupply of low-priced solar panels from China and from reductions in Germany's feed-in tariff (FiT) (which will decrease by 15% from January 1st and by another 9% in mid-2012), yet they still achieved encouraging results. This triggered some industry turmoil. A second German solar photovoltaic manufacturer, Solar Millennium, recently followed in Solon's footsteps and entered bankruptcy proceedings.
Nevertheless, the fundamentals for the future of Germany's solar energy industry appear robust, as Germany, the EU's largest economy, is in the early stages of shutting down its nuclear power plants. The planned closure of nuclear power plants, scheduled for completion in 2022, will support investment in solar and other renewable energy sources, bringing the share of renewable energy in the country's electricity production to 40%.
Germany is not known for its sunny climate, but solar photovoltaic and thermal energy have proven their potential in the country. Active government support and collaboration with the private sector have made Germany a world-leading solar market and industry. This has made the sector a pillar of employment and economic growth, and Germany continues to lead the world in its transition to a clean energy economy.
"Solar energy has become an integral part of a successful energy strategy transformation," said Managing Director Carsten Kolniger in a statement.
In 2011, solar photovoltaic power generation was the fastest growing sector of Germany's renewable energy economy, accounting for 3.2% of renewable energy production, compared to 1.9% in 2010. Preliminary data shows that renewable energy accounted for 19.9% of Germany's electricity production in 2011, compared to 16.4% in 2010.
