Germany introduces subsidy for PV and storage systems

Germany introduces subsidy for PV and storage systems

Germany introduces subsidy for PV and storage systems Energy Storage Journal

Germany introduced a subsidy programme that will provide some financial PV and Energy Storagesupport for households and small-scale projects that choose to invest in PV and energy storage systems.

The subsidies will be paid by state bank KfW under its ‘Renewable Energies Programme supporting the use of stationary battery storage systems in conjunction with a PV system’, details of which are published on the bank’s website.
As feed-in tariffs (FIT) continue to digress in Germany, more households and small businesses are expected to invest in PV and storage systems. In basic terms, these comprise a rooftop PV panel installation, connected to a battery-based system, all of which is connected up to household electrical circuit systems and also the grid.

A EUR25 million budget will be available to reduce the upfront cost the investment in a PV and storage system, which can be around EUR20,000, for a ‘typical’ household, once panels, energy storage and management systems, inverters, other hardware and the installation labour costs are factored in. To qualify individual systems must be no more than 30 kW in size. Soft loan packages are also available to provide households with the upfront capital needed to make these purchases.

Using energy storage allows a higher amount of PV generated electricity to be used, or self-consumed, by a household or other investor, saving money on electricity rates over the system’s lifetime. The maximum amount of electricity generated by a PV and storage system that can be exported to the grid is 60%.

Many companies in the PV system wholesale and installer segment in Germany have been preparing for PV and storage opportunities by forming partnerships with suppliers of energy storage systems, such as Varta, E3/DC, Prosol and others. Leading inverter brands are beginning to take advantage of this new opportunity by developing inverters for energy storage systems, or developing small integrated storage systems and smart home products that programme when appliances can be operated with stored electricity.
SMA, the leading supplier of PV inverters, has been working with its installer partners in Germany by providing training to support efforts by installation businesses to sell PV and storage systems. The PV and storage market is also providing new opportunities for Asian lithium-ion (Li-ion) battery manufacturers, such as Japan’s Panasonic and South Korea’s LG.

Suppliers to the PV and storage segment are already reporting high levels of interest since the details of subsidy where published.