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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