Nearly 20 years ago, Germany passed a law requiring utility companies to pay homeowners more for creating green energy. (Photo courtesy of the National Renewable Energy Laboratory)
Many European countries are taking
climate change seriously. Since
1990, Germany has slashed their carbon
emissions nearly 23%, emerging
as a leader in green energy. Conrad
Wilson explains the country’s transformation
to an alternative energy leader:
Transcript
Many European countries are taking
climate change seriously. Since
1990, Germany has slashed their carbon
emissions nearly 23%, emerging
as a leader in green energy. Conrad
Wilson explains the country’s transformation
to an alternative energy leader:
Nearly 20 years ago, Germany passed a law requiring utility companies to pay
homeowners more for creating green energy. Today that includes wind and
geothermal, but the big winner is solar.
Dr. Silke Karcher is a scientist at the German Ministry of Environment in Berlin.
She says the solar industry is growing, despite the lack of sun.
“One of the instruments, one of the legal instruments that we would really like to
export that has really been successful is the way that we’re supporting renewable
energies and electricity. We have a so-called ‘feed in tariff law,’ which mean that
wherever in Germany you produce renewable energy, you can feed it into the
grid and you get a specific price.”
And that policy has put Germany way ahead to the US. Even with all the rebates
and other recent incentives in the nation’s most pioneering green tech states, it
takes longer for homeowners in the US to pay off an investment in a solar array.
“What Germany does is that they say we’ll pay x amount of euros for every
kilowatt produced, period.”
That’s Jim Rarus, principal of InPower. It’s a Colorado-based solar installation
company. Rarus says rather than comparing renewable fuels to less expensive
fossil fuels, Germany accounts for the costs of pollution.
“They don’t compare certain technologies like solar, which obviously have a
higher cost basis, to other technologies like coal and natural gas, which have a
lower costs basis. So they’re paying a price that reflects the fact that it’s a little
more expensive to build a solar plant and allows the people that put it in to either
get their money back or to make a reasonable return.”
For homeowners investing in solar arrays in the US, the process can be
unpredictable and even frustrating. Johnny Weiss is executive director of Solar
Energy International. It’s a Colorado based nonprofit that trains people for
careers in the solar industry. He says the incentive system in the US is too
complex.
“Over here, it’s different and a more complicated system. We all have states that
are free to do their own incentive programs. We have incentives at the national
level. We have incentives at the local level. But the result is that it’s a bit
overwhelming for not just solar professionals, but the public as well. And it’s not a
consistent thing people can count on.”
Some communities in the US are trying out the European model. But the limited
government support in the US has driven competition as solar companies try to
make the energy source affordable. That’s something some fear isn’t happening
anymore in Germany.
Dr. Kurt Christian Scheel heads up the Department of Climate and Sustainable
Development for the German private industry association. Scheel worries that
government incentives have stifled innovation.
“I mean, let’s put it this way. Whoever produces solar panels in Germany has a
safe earning and no motivation in anyway to, and not enough competition to,
innovate and to make things better.”
But even if in the long-term some feel a feed-in tariff slows innovation and
growth, it’s proven that in a short period of time it can drive energy consumers to
become producers.
For The Environment Report, I’m Conrad Wilson.