Martin Schachinger, founding father of pvXchange.com, explains how German photo voltaic installers are navigating the present slide in PV module costs – now as little as €0.08 ($0.09)/kW. He mentioned photo voltaic leasing might present new alternatives, particularly within the nation’s business and industrial (C&I) sector.
From pv journal Germany
Module costs have remained secure or barely decreased this month, with no signal of change. Both residential and C&I demand continued to fall wanting expectations, reaching lows not seen since late final yr. Installers ought to put together for a sluggish summer time and take into account new enterprise fashions to maintain their employees. If there aren’t any quick orders, they need to discover various strategies.
Solar leasing, particularly together with C&I methods, presents nice potential. Wenzel Gerstner, a co-founder of the German startup Hellgrün, says the corporate secures the roofs of economic facilities and creates power options that assist companies reduce their prices in power utilizing photovoltaic electrical energy. It leases rooftop area from property homeowners and installs photo voltaic methods funded by personal traders. Hellgrün manages your complete course of, from administration and operation to power distribution, whereas planning and technical administration are dealt with by the companions.
To promote electrical energy profitably above the present feed-in tariff, system operators want long-term buy contracts with business property tenants. These agreements permit tenants to acquire solar energy at a preferential fee, masking solely their remaining power wants from the grid. Matching technology and consumption profiles strongly will increase self-consumption and revenue for each events.
A mannequin with partial feed-in and direct supply to on-site tenants is healthier, however securing long-term contracts may be difficult as a consequence of excessive tenant turnover. Despite this, investor danger stays manageable so long as Germany’s renewable power regulation (EEG) ensures mounted tariffs, permitting full feed-in as a fallback. The skill to change between partial and full feed-in is obtainable every year. In addition, the legislature lately elevated the feed-in tariff for rooftop methods between 40 kW and 750 kW by €0.0157/kWh, pending approval by the European Commission.
For a medium-sized PV system of 100 kW, constructed with an honest share of fairness on a rented roof for €100,000 to €120,000, the return is round 5% to six% with bug- feed-in. Choosing a decrease pay extra feed-in can enhance the return to 7% to eight%, assuming no long-term discount in consumption and earnings that continues to be above €0.10/kWh. The business leased electrical energy mannequin is about 30% extra worthwhile than full feed-in beneath present circumstances.
The rental idea is just not very worthwhile, but it surely opens up a brand new section of the market and presents a chance for installers to supply choices to business clients reminiscent of direct buy or rental exterior financing. This method helps clients keep away from preliminary prices and operational dangers whereas securing orders for installers, even throughout tough market circumstances.
Image: pvXchange.com
About the writer: Martin Schachinger studied electrical engineering and has been lively within the subject of photovoltaics and renewable power for nearly 30 years. In 2004, he based the pvXchange.com on-line buying and selling platform. The firm shares commonplace parts for brand spanking new installations and discontinued photo voltaic modules and inverters.
The views and opinions expressed on this article are these of the writer, and don’t essentially mirror these held by pv journal.
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