German Industry Embraces Rooftop Solar

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Rooftop solar installations on commercial and industrial buildings in Germany has surged thanks to significant policy support.

Lots of things changed in Europe when supplies of cheap methane gas from Russia were cut off more than two years ago. Suddenly the cost of electricity soared as supply declined, which had a significant negative effect on businesses all across the Continent. But while losing access to Russian methane was painful, it spurred a pivot to renewable energy systems like rooftop solar that astonished skeptics.

“As electricity prices in Germany show no signs of decreasing as previously anticipated, companies are increasingly recognizing the economic viability of installing solar panels,” said Marie-Theres Husken, an energy expert at BVMW who specializes in small- and medium-sized businesses. Although Germany has Europe’s biggest capacity of solar and wind power generation, those companies have yet to benefit from lower electricity prices because of high grid fees and taxes they must pay.

A drop in solar panel prices globally since last year has spurred companies to embrace solar energy. “The market is overrun with cheap but good panels from China. That means that the system that we are building now is about 20% cheaper than a year ago,” Matthias said. A German legislative package passed in April eased regulations and increasing subsidies for large rooftop systems and included a proposed tax investment reform for real estate funds operating rooftop solar panels.

 

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