Why Are Residential PV Prices in Germany So Much Lower Than in the US

A presentation from Lawrence Berkeley National Labs, exploring Why Rooftop PV is so much cheaper in Germany than the US.  Their feed-in tariff started out quite generous, and has declined predictably over the last several years, which has resulted in the rooftop PV market growing enormously, while installers have been forced to dramatically reduce costs.  To the point where today, it’s about half the cost per-watt-installed to get PV in Germany that it is in the US.  The physical hardware is the same price, but the process is much easier, and the businesses involved in it much leaner.  Good old fashioned German engineering at work, but in the policy realm.

2011 Wind Market Report from LBNL

Lawrence Berkeley National Labs has put out a report on the state of the wind energy industry, as of the end of 2011.  I didn’t realize that the price trend had been so uneven over the last decade.  The cost of wind power was dropping in the early 2000s, and then rebounded, peaking in 2008/2009 due to shortages in the turbine supply chain, before again dropping in the last year or two.  I started looking into these prices because I’m reading a Renewable Energy Policy by Paul Komor (2004) and the prices he quotes ($40-$50/MWh) seem low, relative to the numbers from Xcel’s ERP and the recent bids I saw in Michigan (more like $60/MWh), but the book was written right at the wind price bottom.  I’m also shocked at how wide the spread in costs is, even in just the last couple of years.  California is paying $100/MWh for huge projects, and in the wind belt some projects are coming in more like $25/MWh.  That’s got to be largely policy driven, and it indicates we’ve got a woefully inefficient market for wind.