09 Feb '12, 12pm

Solar PV Reducing Price of Electricity in Germany

Solar PV Reducing Price of Electricity in Germany

Overall, the price of electricity has been reduced on the power exchange by 520 to 840 million euros. Leprich argues that this merit-order effect has to be taken into account when discussing the cost of photovoltaics. “Of course, the effect is greater in the summer than in the winter, but it is there all year. After all, solar power is still generated in the winter – just not as much.” Nonetheless, the retail rate in Germany continues to increase because industry benefits from lower prices on the power exchange more than households. Leprich says that “energy-intensive industrial firms are the ones who buy power on the spot market, thereby directly benefiting from the price reductions brought about by photovoltaics. And power providers do not pass on the savings to consumers.”

Full article: http://cleantechnica.com/2012/02/09/solar-pv-reducing-pri...

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