The quota model for renewable energy does not work as well as feed-in tariff models. In a report recently published by Germany’s Agentur für Erneuerbare Energien (Renewable Energy Agency), the feed-in tariff system was shown to deliver a lower cost to consumers than quota systems. […]
The price of solar is dropping fast, opening new opportunities for community-scale renewable energy across the country. But despite the improving economics and tremendously sunnier skies, the United States lags far behind Germany in installing new solar power.
The biggest difference is policy. The U.S. has two major federal incentives (a 30% tax credit and accelerated depreciation) for solar power, and a few state programs for solar power. Germany and most other developed countries use a feed-in tariff for renewable energy, a policy responsible for three-quarters of the world’s solar power capacity.
Private equity firm Blackstone is investing in offshore wind in Germany in a big way. The company announced it had secured a total of 1.2 billion euros of financing for the 288MW Meerwind North Sea wind farm project, as well as obtaining a permit for Nordlicher Grund, a 64-turbine, 1.3 billion euro North Sea wind farm. A group of seven banks will provide 822 million euros in debt financing with Blackstone supplying Meerwind’s equity. Supporting the financing is Germany’s feed-in tariff, which locks in rates for Meerwind’s electricity output.
