As can be seen in the graph and as described in the timeline above, Germany has consistently exerted downward pressure on PV prices through degression during the past decade. During 2000-2009, degression was set as a fixed annual amount. During 2009-2011, however, the German government introduced volume-responsive “corridor” or “flexible” degression schedules. During the same period, the German government also implemented “non-scheduled adjustments” as a result of “unforeseen developments in the prices of photovoltaic systems.18” Since 2008, PV component prices have declined sharply, with panel prices falling approximately 40% in 2009 alone. The impact on the German market and the government response is apparent from the graph below: there is a comparatively sharp decline in rates starting in 2009-2010 in reaction to a significant acceleration in market growth. This dynamic is discussed in detail in this section.
Source By: dbadvisers