Germany’s Solar Power Surplus Leads to Negative Electricity Prices

Germany’s solar energy boom results in electricity prices dropping to negative, impacting solar companies and carbon reduction goals.

On May 26, according to a report from Business Insider, Germany massively expanded its solar power production, causing a surplus that has led to electricity prices plummeting to negative values. This peculiar market scenario allows consumers to get paid for using electricity.

Bloomberg reports that the price drop has harmed solar power companies’ profits, slowing the expansion of solar energy and hindering overall carbon emission reduction efforts.

The primary issue is inefficiency; consumers use the most electricity when the sun isn’t shining, such as in the evenings after work, resulting in significant power waste.

The price drop is due to Germany’s substantial increase in solar power development last year, with an additional photovoltaic capacity of 14,280 megawatts, nearly double the previous year’s amount.

Germany isn’t alone in facing this issue. California, USA, also experienced falling electricity prices, slowing solar panel installations, and delaying its carbon neutrality goals.

In response, California legislators have temporarily reduced subsidies for solar power companies, which has caused dissatisfaction within the industry.

A long-term solution involves installing storage facilities to save the excess solar power for use during cloudy days and peak demand periods, typically at night.

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Aditya Nath Jha is an Engineer from New Delhi, India. His areas of interest include Gadgets, WordPress, speed optimization & latest technology. When he is not busy blogging he loves to write poetry, compose his own songs and has a taste for music! Find him on Facebook, Twitter, Linked in, Instagram. And watch his videos on YouTube.

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Germany’s Solar Power Surplus Leads to Negative Electricity Prices

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