Germany now has so much solar energy that electricity prices are negative

Prices dropped by 87 percent – more than a decline.

In Zielona

Germany has so much energy coming from solar panels that it has exceeded consumer demand and sent energy prices plummeting, even crossing zero and going negative, according to Business expertcreating an Alice in Wonderland energy market where electricity consumers can be paid to use extra energy.

Tuesday’s report by European financial services company SEB showed daytime power prices falling to 9.10 euros per megawatt hour, compared with an average of 70.60 euros per megawatt hour during periods when the sun is not shining.

This price drop is there in their opinion, harmful to the financial results of solar energy producers Bloomberg, this slows down efforts to further expand solar energy and hinders greater efforts to reduce greenhouse gas emissions.

But the biggest consequence is lack of efficiency. Consumers tend to use the most energy when the sun is not shining, such as in the evening when they come home from work, which means a lot of energy is wasted.

Sunburst

The reason energy prices have fallen so sharply is that Germany went on a solar frenzy last year, installing a high level of capacity of 14,280 megawatts, almost double the previous year.

The problem is not limited to Germany. California has experienced the same problem, making energy prices less golden and slowing the pace of solar panel installations – and progress towards a carbon-neutral future – in the state.

In the short term, California lawmakers responded by paying less money to solar producers, which irritated the sector, and by urging the state’s power grid operator to sell surplus power to neighboring states.

Of course, the long-term solution is to install energy storage solutions that can store excess solar energy for consumers to use on cloudy days and in the evenings, when energy demand is historically highest.

Until then, countries with excess solar energy will have to ride the turbulent wave of energy prices rising and falling like a roller coaster.

More on solar energy: Scientists say solar power is performing so well that people may start to go off the grid