In 2012, the German solar power capacity had a growth of 7.6 GW, which exceeded more than 2.5-3.5 GW as expected by German authorities.
The German solar capacity had grown by more than 7.6 GW, as compared to the previous records of 7.5 GW in 2011 and 7.4 GW in 2010, due to which the government was forced to decrease subsidies on solar power, because of which new installations dropped significantly during the fourth quarter of 2012.
Because of the shift from nuclear power towards the fast expansion of subsidised renewable energy, it might increase the consumer costs and turn out to be a threat to economic growth, which is a major concern to businesses and politicians in Germany.
Due to generous feed-in-tariffs, there is a growth in production of solar power, which guarantees the generators for 20 years to encourage carbon free power which will gradually replace fossil fuels. To reduce the pace of installations, last year the government had agreed to cut the level of feed-in tariffs, as long as the production of solar power becomes more expensive than conventional forms of energy. Hence, the tariffs were cut by 2.5 percent a month between Nov. 1, 2012 to Jan. 31, 2013.
The installed capacity of solar power in the last quarter of 2012 was reduced as compared to the overall installations last year. As per the survey, 611 megawatts (MW) had been installed in October, 435 MW in November and 360 MW in December, which showed that the amendment had worked. In 2013, the German Environment Ministry is expecting an increase of 3.5-4 GW, according to environment ministry spokesman.
In 2013, there is a growth in subsidising cost per average household by 60 euros ($79.10) to 185 euros for the year. It is caused mainly due to the overall bill raise of 47 percent, to 5.3 cents a kilowatt hour on the share of renewable subsidies on Jan. 1, 2013.
The government also encouraged energy-intensive industry, cutting some of the green energy and network usage costs for companies.
The members of association of solar producers said that solar power is being supplied to 8 million households which is 45 % more than in 2011, and accounting for 5 percent of total power usage.