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Germany to start subsidies for solar power storage systems in May 2013; up to EUR 660 per kW of installed PV generation capacity

06/06/2013

The German solar industry welcomes the federal government's announcement that it will support battery systems to accompany solar photovoltaic (PV) generation beginning in May 2013.

eb4250caa_solar_power_storage_solon.jpgThe German solar industry welcomes the federal government's announcement that it will support battery systems to accompany solar photovoltaic (PV) generation beginning in May 2013. Germany will subsidize the purchase of new battery storage systems with up to EUR 660 (USD 870) per kWp. In the first year the KfW banking group will provide EUR 25 million (USD 33 million) in funding.

Industry expects high demand for solar power storage

"We anticipate great demand,” says Dr. Günther Häckl, president of the German Solar Industry Association (BSW-Solar). “More and more people are interested in generating electricity economically from renewable sources. PV systems and solar power storage are an excellent combination also for climate protection.”

Solar power storage important for the energy transition

Decentralized storage is an important element of Germany’s energy policy, because batteries reduce the need to extend the grid despite larger shares of renewable energies.

Performance of subsidized PV systems to be limited to 60 percent for the entire payment period

The new subsidies also specify that solar energy systems combined with subsidized storage must reduce their output to 60% for the entire payment period. This will allow plant operators to help avoiding production peaks.

Potential PV investors are interested in battery storage

The interest in battery systems is high, particularly among operators of small solar PV systems up to 10 kWp. According to a survey by BSW-Solar, many owners of residential systems are considering storage. 

"The new funding will spur the use of solar power storage systems,” says Häckl. “If the storage market is gaining momentum based on large demand, costs will decrease due to economies of scale and technological progress.”