New German subsidy kickstarts solar storage market: IHS

Facebook
Twitter
LinkedIn
Reddit
Email

A German government subsidy programme will trigger rapid growth in the solar storage market in 2014, according to research analysts IHS.

The scheme, which has a budget of €25 million (US$33 million) for 2013, was established in May this year and will cover up to 30% of the cost for residential storage equipment when added as apart of a new residential PV system.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

“German energy storage subsidy is forecast to kick-start the adoption of solar PV energy storage systems in a similar way as its feed-in tariff (FiT) system ignited the PV industry eight years ago,” said Sam Wilkinson, research manager, at IHS.

“The adoption of residential PV energy storage in Germany will accelerate in 2014 as a result of this subsidy and falling prices of the storage system,” said Wilkinson.

According to Bundesverband Solarwirtschaft (BSW), the German solar association, 1,100 applications have already been approved and 4,800 more are working through the system.

“Similar storage subsidies are available in both Japan for Li-Ion based storage solutions in the residential sector, and in California where advanced energy storage systems can be subsidized up to 3 MW in size.

“An energy storage solution enables the system owner to increase the level of self-consumption from around 30% without a solution to around 60% if adding batteries,” claimed Wilkinson.

“The energy storage market in Germany will be dominated by the residential sector, with 30MW of installations already supported by the subsidy in 2013. Periodic decreases in FiT and continually increasing electricity prices, coupled with decreasing PV system prices, have now made it financially favourable for a home-owner to self-consume PV energy on-site rather than export it to the electricity grid and receive the FiT,” he added.

It is estimated that €18.7 million (US$24.7 million) of the 2013 budget has already been allocated.

Read Next

September 9, 2025
Nautilus and Summit Ridge Energy secured major financing deals to expand community solar projects across multiple US states.
September 9, 2025
The US is forecast to reach between US$55-60 billion in clean energy tax credit monetisation in 2025, according to a report from clean energy financing technology platform Crux.
September 9, 2025
The average price of solar modules sold in Europe fell marginally between July and August, while buyers’ confidence remained steady.
September 9, 2025
The US Solar Energy Industries Association (SEIA) has released a policy blueprint which it claims would “strengthen the reliability of America’s electric grid with solar and storage technologies.”
September 9, 2025
US solar tracker manufacturer Nextracker has acquired Origami Solar, a steel frame technology-focused company, for approximately US$53 million. 
September 9, 2025
China has advanced in the integration of AI and new energy, covering areas such as power forecasting, electricity markets, and O&M.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines