Despite the German government’s plan to reduce incentives for new solar installations, some market segments in the country will remain attractive for photovoltaics (PV) in 2012, with the return on investment (ROI) remaining sufficient to attract financial support for residential systems-and even some large-scale systems-according to the IHS iSuppli Photovoltaics Service at information and analytics provider IHS.

The two German ministries for the environment and the economy last week jointly published a proposal to cut feed-in tariffs (FITs) and to simplify the tariff system. The proposal still must pass the German parliament and the upper house, but is likely to be accepted.

“The reductions in the FITs mean that the success of the German PV market in 2012 will hinge on its capability to generate an attractive ROI based on free-market dynamics, rather than on government incentives,” said Dr. Henning Wicht, director and principal analyst for photovoltaics at IHS.

via German Solar Market Remains Attractive for Residential Investments.