Abstract for: Dynamic Feed in Tariff Price Adjustments for the Rooftop PV Market in Germany
This paper discusses the feed in tariff policy for the roof top photovoltaic market in Germany. It attempts to explain the fluctuation pattern of the PV deployments occurred between 2011 and 2014. The study aims to figure out the basic system structure behind this phenomenon, and suggest a way to reduce the fluctuations and stabilize the PV market growth. System dynamics method is used to build a simulation model as an alternative to optimization method used in earlier research. The simulation model successfully replicates the historical behaviour. The model results were then analysed to enhance feed in tariff policy design to have a dynamic and real time feed in tariff policy instead of stepped and discontinuous one. The study concludes that dynamic price adjustments can significantly improve the stability of the market growth. Dynamic price adjustment can provide more cost effective policy and provide reliable market projections for policy makers.