Considering the country’s decision in 2011 to phase out nuclear power by 2022, Germany has made a smart decision to take definite steps towards incentivizing the uptake of renewable energy technologies from a fiscal point of view. The country recently reached the point where 20% of its electricity is generated from renewable sources, and in order to maintain this rise in uptake, the federal KfW bank group has increased its lending in the multimillion euro business loan sector.
Germany boasts the world’s strongest installed PV figures and is also the European leader in terms of wind power, with plans to undergo a major expansion in the offshore segment.
The revised plan as proposed by KfW has resulted in the bank’s stepping up of its lending policy for small businesses, which now renders companies with annual revenue of up to €3 billion as eligible to apply for the renewables investment loans. Loans of up to €25 million have also been made available to support research and development of energy storage, transmission, production and efficiency techniques.
“With such a large share of renewable energy in the mix, it is becoming more urgent to implement smart grid and storage technologies to balance the fluctuating supply. Germany is making an exceptional team effort to achieve our ambitious goals, with businesses, banks, researchers and the government all working together”. said Heiko Staubitz, renewable energy expert at Germany Trade & Invest in Berlin.