*4.3. E*ff*ects of the Changing Feed-In Tari*ff*s*

Feed-in tariffs of renewable energy in Germany are decreasing as each year passes and PV FIT drops faster than any other renewable power source. In the last 15 years, the FIT recorded a decrease of approximately 80% for small rooftop PV installations and 90% for medium-size PV systems [42]. Figure 8 shows the decrease in German FIT from 2000 to 2020.

**Figure 8.** The changes of PV FIT and electricity price in Germany (2000 to 2020). The FIT dropped approximately 80% for small rooftop PV installations and 90% for medium-size PV systems [42].

According to Obane and Okajima [43], the FIT scheme for small PV systems is fast approaching its closure or expiration in many countries. In Germany, the EEG law stipulates that further FIT systems will not be allowed, when the total PV installations reach 52 GW. At the end of April 2018, the country had 43.8 GW PV installed. With the current tenders of PV, this cap is expected to be reached in 2020 [44]. However, the German government presently reconsidering this plan and is considering to allow FIT in future when the 52 GW is exceeded. With decreasing FIT self-consumption is gaining higher importance, especially with increasing cost of delivering PV electricity and rapid decline in the cost of solar PV modules. In addition, after 2020, the FIT will gradually expire for the oldest PV plants [42] and the produced PV power will be mainly used for SC. Thus, E-W and SE-SW orientations will provide the highest SC rate and will be more beneficial for the householders. Our calculation shows that the higher benefit of south orientation is no longer existent if FIT decreases to 7.0 Ct/kWh or lower, where at least the SE-SW orientation will have a higher IRR that the S orientation.

The economic calculations above were done for the conditions of the present FIT in Germany. The major conclusions, however, can used for many countries around the world, which apply FIT or similar PV cost structures. The results are especially relevant for the countries, which offer a very low FIT (e.g., New Zealand and Portugal) or for which eliminated the FIT scheme (e.g., UK, Spain, Czech Republic, Italy).
