2005–2008: The First Big Solar, Supply Constraints

Abstract

I have chosen 2005 as the first year to write about mainly because it was the year I started working full time in clean energy, but it is not unreasonable: new photovoltaic installations globally rose from 1106 MW in 2004 to 1488 MW in 2005, when the German ‘feed-in tariff’ introduced in 2004 started to kick in. This was a landmark piece of legislation that had both intended and unintended consequences, and has been both emulated and cursed. It will be a brave government that passes an uncapped feed-in tariff for solar into law again, for reasons that will become clear. However, it was a major factor in driving the dramatic cost reductions in solar, and everyone now working in the solar industry owes the German electricity consumer a debt for paying the first mover prices…