German PV sector reports increasing solar demand

Business forecasts for German solar sectors have never as good in the past seven years as they are right now. This is, at least, what the business climate index of the German solar association BSW is saying (see chart below). The current index value of 122.4, in fact, was last reached in 2010.

The association said that Germany’s solar economy has now finally bottomed out, and that there are clear signs of a new growth. BSW stated that the main drivers for this improved market situation are better financing conditions, as well as more attractive yields. The organization believes that demand for new PV systems in the real estate and commercial segments will increase considerably over the next few months.

BSW CEO Carsten Körnig said that there are new reasons why the German solar market is growing again. A decade ago, Körnig said, investors were attracted by high FITs, while now it is rather the low cost of PV installations that is boosting the growth. In addition, Körnig said that self-consumption is also playing an important role in this increase in demand.

The BSW stressed that around 50% of new commercial and residential PV system installed in Germany is coupled with a storage system. This, Körning, concluded, is unburdening the electricity system, as production peaks are capping solar energy in the middle of the day.

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