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German solar installations rise in June

2 Aug 2012, 1.10 pm GMT

German solar installations rise in June

London, 2 August (Argus) — Germany has around 1,790MW in new solar power capacity in June alone, as households and investors race to secure feed-in tariffs.

Total installed capacity in Germany jumped to 29,173MW in the first half of this year, compared with 24,800MW installed at the end of 2011.

The country added just over 254MW in May and around 1,791MW in June, data published by grid regulator BNA show.

The expansion in June was the strongest monthly addition so far this year.

In total, Germany has already added 4,373MW in new solar power capacity in January-June, which is ahead of the government's target of 2.5-3.5 GW/yr.

And installations are expected to continue at a rapid pace, after policy makers agreed at the end of June to end subsidies for new solar plants once total installed capacity reaches 52GW.

Feed-in tariffs will also be reduced on a monthly basis, with reductions to reach even higher if the yearly target is exceeded. This might spark a rally in securing higher subsidies.

The German environment ministry said in July that the country might reach 52GW of total capacity as early as 2014 or 2015.

The country would have to add around 8.3 GW/yr in 2012-14 to reach the 52GW mark by 2014, or 6.25 GW/yr to reach it by 2015.

And the strong growth in the first half of this year — and June in particular when a deal between policy makers on cuts to solar feed-in tariffs became increasingly likely — indicate that Germany is well on its way to surpass the 7.5GW installed last year.

The environment ministry and several other experts, including German chamber of commerce and industry chamber DIHK, have previously said a continued aggressive expansion in solar capacity is possible because the cost of solar panels have fallen more rapidly than feed-in tariffs in the past.

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