Intersolar 2008: Reformed Legal Framework Proves Germany's Commitment to Solar

Berlin (ots) - Intersolar 2008 is beginning with encouraging news
for solar investors. Germany's favorable legal framework, that has
made the industry successful, is secure. Shortly before the world's
largest trade fair for solar technology, running from June 12-14th in
Munich, Germany, the country's parliament reaffirmed its commitment
to solar energy by passing a reformed Renewable Energy Sources Act
(known as the EEG).

Germany has quickly become the world's leading solar market. The
numbers tell the story: Its 3.8 GWp (Gigawatt peak) of installed
photovoltaic (PV) capacity makes up nearly one half of the global
solar energy market. This capacity is contributing to significant
revenues for PV companies located in Germany. In 2007 PV industry
revenue hit E5.5 billion. Experts say that the market is far from
exhausted. Rather, further market growth of 15-25% is expected.

The industry's success in Germany is thanks to many factors: The
country's large pool of skilled workers means that products can
quickly go from the drawing board to reality. Product failure rates
are also very low. A dense research network allows ideas to be worked
through and implemented into new products quickly and efficiently.
Public authorities in Germany are also supportive of PV and process
building applications in a timely fashion.

The EEG is, however, one of Germany's major advantages. It
mandates that owners of PV equipment, such as solar systems, be paid
a "feed- in tariff" for solar energy that is sold into the public
grid. The tariff, that is good for 20 years, makes it profitable for
homeowners, businesses, and other institutions to own solar systems.
This, in turn, creates a domestic market, making Germany an
attractive location both to produce and sell PV modules and
components.

Under the original legislation, the tariff fell by five percent
every year, in order to encourage cost reductions and efficiencies.
The solar industry is working toward "grid parity," the point at
which electricity from solar energy costs the same as that from
conventional sources.

The parliament has now agreed to set the annual tariff reduction
at between eight and ten percent in 2009 and 2010 and then nine
percent annually following 2011. Solar industry representatives
announced satisfaction at the decision.

"This vote keeps Germany a top location for PV investment, while
giving further impulse to the race for grid parity," noted Nikolai
Dobrott, Senior Advisor and head of the Renewable Energies team at
Invest in Germany.

Invest in Germany is the inward investment promotion agency of the
Federal Republic of Germany. It provides investors with comprehensive
support from site selection to the implementation of investment
decisions.

Originaltext: Invest in Germany
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Media Contact:
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