PVSEC: German Solar Demand on Record Pace in 2010; Feed-in Tariffs Updated

Berlin/Valencia (ots) - Photovoltaic system installations in the
first half of 2010, estimated at 3 GWp, continue to consolidate
Germany's position as the world's largest photovoltaic (PV) market
and an attractive investment location for PV companies. In 2009,
Germany accounted for approximately one of every two newly installed
modules worldwide, with total installations at 3.8 GWp for the year.
Germany Trade & Invest will have representatives at this year's
European Photovoltaic Solar Energy Conference & Exhibition in
Valencia, Spain, from September 6-9 to introduce opportunities for PV
companies in Germany.

Amendments to the photovoltaic feed-in tariffs of Germany's
Renewable Energies Act (EEG) were passed in early July, with a
further adjustment to take effect October 1. The changes mark a
further shift towards the rooftop segment by abandoning field
installations on cropland and increasing the attractiveness of the
own consumption bonus for small and medium-scale rooftop
installations. This bonus is paid to rooftop installation owners of
systems smaller than 500 kWp who intend to use the energy they
generate.

Feed-in tariff rates were reduced by 13 percent for rooftop
installations and eliminated for cropland field installations from
July 1. At the same time, conversion areas saw a reduction of 8
percent and all other areas were decreased by 12 percent. Beginning
October 1, these rates will be reduced by a further 3 percent. Still,
the new tariffs remain highly attractive, with rates ranging from
25.02 - 34.05 Eurocent /kWh for installations connected before
October 1 and 24.26 - 33.03 Eurocent/kWh for those connected during
the remainder of the year.

The law, 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.

Increased Demand by Private Users

The two-tiered 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.
Increased demand in the rooftop segment corresponds with
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. By 2013 energy from PV sources is expected to
be competitive with conventional energy sources in the electricity
market for private consumers.

Manufacturers in Germany not only have easy access to a large and
growing market, they also benefit from a competitive advantage
through a local brand presence and reputation for high quality
products. Germany boasts a well established industrial
infrastructure, large equipment supplier base, and qualified and
experienced workforce. The country's PV industry also features the
highest density of R&D institutes in the industry.

Germany Trade & Invest will have representatives at this year's
25th European Photovoltaic Solar Energy Conference & Exhibition in
Feria Valencia - Level 2 - Hall 2 - Booth A17 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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Pressekontakt:
Germany Trade & Invest
Eva Henkel
Email: eva.henkel@gtai.com
T: +49(0)30 200099-173
F: +49(0)30 200099-111