Renewable Energy Act Amendments Shift Demand to German Rooftop Segment

Berlin (ots) - Amendments to the photovoltaic feed-in tariffs of
Germany's Renewable Energies Act (EEG) were passed today, marking a
shift towards the rooftop segment. Germany's Bundesrat (lower house
of parliament) approved the amendments this morning, clearing the way
for them to become law. The changes abandon field installations on
cropland and increase the attractiveness of the own consumption bonus
for small and medium-scale rooftop installations. Germany Trade &
Invest will have representatives on hand at this year's Intersolar
North America in San Francisco, California, from July 13-15 to
introduce opportunities for photovoltaic (PV) companies in Germany.

Implemented retroactively to take effect July 1, feed-in tariff
rates will be reduced by 13 percent for rooftop installations and
eliminated for cropland field installations. At the same time,
conversion areas will see a reduction of 8 percent and all other
areas will be decreased by 12 percent. Beginning October 1, these
rates will again be reduced by a further 3 percent of the initial
rate. Still, the new tariffs remain highly attractive, ranging from
25.01 - 34.05 ?c/kWh for installations connected between July 1 and
October 1 and 24.16 - 32.87 ?c/kWh for those connected during the
remainder of the year. The new amendments also more than double the
federal target of annual installed capacity to 2.5 - 3.5 GWp.

The law, which was established ten years ago, requires power
companies to buy renewable energy from system owners at the
corresponding feed-in tariff rate for 20 years, guaranteeing an
attractive payback time and high returns. Even greater income can be
secured by utilizing the "own consumption bonus," which is paid to
rooftop installation owners of systems smaller than 500 kWp who
intend to use the energy they generate.

For 2009, photovoltaic installations amounted to 3.8 GWp, making
Germany again the world's largest PV market and an attractive
investment location for PV companies. Germany accounted for
approximately one of every two newly installed modules worldwide. For
2010, some experts predict the market could double its 2009 mark.

Increased Demand by Private Users

The changes to the EEG are a reaction to the increased price
competitiveness of photovoltaic systems, including the recent price
drop for solar panels and components. These developments have created
a number of new market opportunities for PV companies. The shift in
focus that favors the rooftop segment is expected to further increase
demand for installations by private users who overwhelmingly prefer
high-quality systems. Changes are also leading to growing demand for
energy storage systems and smart grid applications to fully profit
from the own consumption bonus. Decreasing system prices and rising
electricity prices have enabled the German market to approach grid
parity sooner than expected. By 2013 energy from renewable sources is
expected to be competitive with conventional energy sources in the
private user electricity market.

Quality Segment Boosts Attractiveness of Local Production

Manufacturers in Germany not only have easy access to a large and
growing market, they also benefit from a significant competitive
advantage through a local brand presence and reputation for high
quality products, which is valued by private users and in the rooftop
segment. Germany's PV industry also benefits from the highest density
of R&D institutes in the industry. At the same time, the country
boasts a well established industrial infrastructure, large equipment
supplier base, and qualified and experienced workforce.

An indicator of confidence in Germany's photovoltaic cluster
strength, international companies First Solar and Avancis as well as
German PV companies SolarWorld and Juwi have announced major
expansions in Germany in recent weeks. All of these new investments
are for sites in Eastern Germany, a major manufacturing hub for
Germany's globally renowned photovoltaic industry. Germany Trade &
Invest will have representatives at this year's Intersolar North
America at the German Pavilion, Level 1, Booth Number 7523A to meet
with companies interested in the world's photovoltaic leader.

Germany Trade & Invest is the foreign trade and inward investment
promotion agency of the Federal Republic of Germany. The organization
advises foreign companies looking to expand their business activities
in the German market. It provides information on foreign trade to
German companies that seek to enter foreign markets.

Originaltext: Germany Trade and Invest
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Contact:
Germany Trade & Invest
Eva Henkel
Email: eva.henkel@gtai.com
T: +49 (0)30 200099-173
F: +49 (0)30 200099-111