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The German Federal Network Agency has announced PV feed-in tariffs (FiTs) will suffer a monthly 1.8% degression, effective today and then on 1 June and 1 July.

The FiT is calculated depending on the number of installations from the previous quarter, which experienced a shortfall. Therefore this represents a slower degression when compared with the previous three months of 2.2%.

Jochen Homann, president of the Federal Network Agency, said that although PV systems installed in March exceeded the 2,500-3,000MW allocated for each year, the excess was not as significant as previous months, thereby negating a need for a steeper degression rate. By default, FiTs are reduced by 1% each month.

For March, the Federal Network Agency registered 290.5MW of installed capacity which qualified for the FiT.

Market research firm EuPD has forecast a significant reduction in new PV capacity in Germany in 2013 expecting only 3.9GW compared to 7.6GW installed in 2012.

The new FiT degression rate means systems up to 10kW will receive €0.1563 (US$20.433) per kWh starting 1 May.

From 1 June, the tariff will be reduced to €0.1535 per kWh, and on 1 July, the tariff will fall to €0.1507 per kWh. Larger systems up to 40kW will receive €0.1483, €0.1456 and €0.1430, respectively, while plants up to 1 MW will receive €0.1323, €0.1299 and €0.1275, respectively.

Finally, PV plants from 1 to 10MW in size will receive €0.1082, €0.1063 and €0.1044 in May, June and July, respectively.

The Federal Network Agency will announce the new tariff degression rate for the quarter starting 1 August in late July.