From FIT to FIP: assessing the impact of feed-in policies on renewable development in Germany

By adopting the autoregressive-distributed lag error correction model, we examine both the short- and long-term impacts of feed-in policies on renewable energy deployment. The estimation results show that the feed-in premium scheme achieved its objective of encouraging the market integration of wind energy but discouraged and retarded investment in solar power technologies. Compared to the market mechanism, fixed price feed-in policy creates greater investment security for solar power projects.

Automated summary

By examining the impacts of feed-in policies on renewable energy deployment, we find that the feed-in premium scheme encourages the integration of wind energy in the market, but discourages investment in solar power technologies. Fixed price feed-in policy provides greater investment security for solar power projects.