Germany using photovoltaics to help reduce fossil fuel consumption

Germany is the world's largest photovoltaic (PV) market with approximately 1,150 MWp of newly installed PV power and a turnover of €3.7 billion in 2006 - continued double-digit growth is expected, forecasts "Invest in Germany" the inward investment promotion agency of the Federal Republic of Germany.

 

55% of the PV capacity worldwide is installed in Germany, and last year Germany's PV industry generated €3.8 billion in sales. A main reason for Germany's leading position in PV energy is the Renewable Energies Act, (EEG). The law requires power companies to buy electricity from the owners of PV installations at a set price, 37.96 to 54.21 €ct/kWh over twenty years.

 

This so-called "feed in tariff" has resulted in a ready-made market for PV technology production. Additionally, investment incentives in eastern Germany sometimes cover up to 50% of investment costs, in areas such as "Silicon Saxony," where numerous PV and semiconductor firms are present - making this region popular for PV investments.

 

International PV companies are also drawn to Germany by its network of producers, suppliers, and research institutes, such as the Canadian company ARISE Technologies Corporation who is building a PV cell manufacturing plant in the German town of Bischofswerda. The company's CEO Ian MacLellan sees Germany's workforce as one of its main features, "We selected Germany because it is the largest solar market in the world. It has a high concentration of solar technology companies and has access to skilled technical labor."

 

Many international PV players have established a presence in Germany, such as Nanosolar, Signet Solar and First Solar.

 

As the country works to reduce fossil fuel consumption, the importance of PV in Germany is expected to increase, making the country even more attractive for international investors than it is today.

 

PV is a growing and dynamic industry in Germany that offers predictable pricing - something that fossil fuels cannot do. As the country works to reduce fossil fuel consumption, it is likely that the importance of PV in Germany will increase, making the country even more attractive for international investors than it is today.

 

 

For more information read Printed and Thin Film Photovoltaics and Batteries Technologies, Forecasts and Players  or attend the IDTechEx conference Photovoltaics: beyond conventional silicon USA 2008 .