Feed-in tariffs - learning from Germany's example

The most famous example of a successful and well run feed-in tariff is that of Germany. It was introduced over 15 years ago and has been running ever since. The German Government passed legislation in the form of the Electricity Feed Act 1991 which regulates the feed in of electricity from renewable sources to the power grid and requiring Utility companies to buy electricity from renewable sources including domestic solar panels at nationally fixed prices.

Since the scheme started it has been reviewed a couple of times, most notably in 2000. As a direct result of this legislation there has been a huge expansion of the renewable energy market in Germany. Since 2000 the amount of electricity fed into the national grid from renewable domestic sources has more than tripled. Just currently Germany has more than 2,500MW of generating capacity held in solar power.

A new tariff was introduced nationwide in Germany in 2004 and currently the basic level of compensation is around $1.12 p/KW AUS for a domestic dwelling. Have a look at our table of costs for Australian territories and see how this compares to you!

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