Germany’s Solar Industry Crashes and Burns | WHAT REALLY HAPPENED

Germany’s Solar Industry Crashes and Burns

Germany’s solar industry has crashed and burned after the government drastically cut its subsidies.

In 2007 solar operators in Germany were guaranteed feed-in tariffs of 49.2 euro-cents per KWh (kilowatt hour); today they are just 12.7 euro-cents per KWh.

As Warren Buffett once said of his wind energy investments: “They don’t make sense without the tax credit.” It’s just the same with solar, especially in a country like Germany which sees so little sunshine.

In December 2017, for example, Germany experienced a total of just ten hours of sunshine in the whole month. So while theoretically its installed solar capacity – a huge 40 gigawatts – is almost enough to power half the country at lunchtime on a sunny day, most of the time it is next to useless.

Germany’s great transition from fossil fuel power to renewables – its Energiewende – will cost the economy an estimated 520 billion Euros ($635 billion) by 2020. This is roughly equal to 25,000 Euros ($30,500) per family of four.