Abstract
Purpose – The world is undergoing a dramatic shift in climate conditions. A heated debate is on-going over what measures to take in order to overcome the global-warming-related temperature increase, now more than 2 degrees centrigrade. The article tries to evaluate the contribution of the feed-in tariff (FIT) and the price of components for solar plants to the accumulation of new solar capacities in Germany, with the aim of determining the reasons for a drastic decline in the new capacities, observed since 2012.
 Methodology – An autoregressive integrated moving average (ARIMA) is used with the new PV Capacities as a dependent variable and component prices and feed-in-tariffs as independent variables. Data from German Federal Network Agency is used.
 Findings – The statistical analysis shows a significant effect of component prices (in EUR per watt) and the value of the FIT (in EUR) on the New PV Capacities. As Germany has not reached the postulated yearly increase rate of New PV Capacities of 2500 MW since 2014 (EEG, 2017), new approaches are necessary to overcome this situation
Highlights
The world is undergoing a dramatic shift in climate conditions (Met Office 2015)
The aim of the article is to evaluate the impact of the feed-in tariff (FIT) and the price of components for solar plants on the accumulation of New Solar Capacities in Germany in order to understand the drastic decline in new capacities since 2012
Three variables have been chosen for the analysis: new PV capacities as a dependent variable, component prices and FIT
Summary
As we could observe at the world climate conference in Paris 2015, most of the governments confirmed these severe problems. In the year 2022 the last nuclear power plant in Germany will be closed (Altmaier, 2013). An important component of the German energy mix is solar plants (Frauenhofer, 2017). Since 2000, renewable energy has been subsidised, experiencing a heavy boom in Germany in recent years (especially during the years 2010-2012). The costs of trading in energy increased, forcing politicians to abandon the guaranteed feed in tariffs (FIT) for solar plants (Frauenhofer ISE 2017). The aim of the article is to evaluate the impact of the feed-in tariff (FIT) and the price of components for solar plants on the accumulation of New Solar Capacities in Germany in order to understand the drastic decline in new capacities since 2012
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