PV Market and industry development in Germany Athens, September 15, 2009 PV Market and industry development in Germany Christoph Urbschat Chairman Work Group Export Photovoltaic German Solar Industry Association (BSW-Solar) Stralauer Platz 34, 10243 Berlin, Germany Tel. +49 30 2977788 0, Fax +49 30 2977788 99 www.bsw-solar.de, urbschat@bsw-solar.de 1

Solar Markets Germany, September 15, 2009, Athens German Solar Industry Association Bundesverband Solarwirtschaft – BSW-Solar TASK Represent the German solar industry in the solar thermal energy and photovoltaics sectors VISION A worldwide sustainable energy supply provided by solar energy ACTIVITIES Lobbying, political advice, public relations, market observation, standardization TIME Over 25 years of activity in the solar energy sector MEMBERS More than 700 solar producers, suppliers, wholesalers, installers and other companies active in the solar business HEADQUARTERS Berlin © BSW-Solar 2009 Solar Markets Germany, September 15, 2009, Athens

Solar Markets Germany, September 15, 2009, Athens Why do we need Photovoltaics? Source: Aleo PV is the most fascinating way to produce electricity Advantages PV can be used everywhere worldwide PV can be used grid connected and off-grid PV can be used in every size PV needs only one initial investment PV does not harm the environment PV has the biggest potential among all RES Challenge: Today, PV is often the most expensive way to produce electricity using RES However: PV has the highest cost reduction potential => PV has to be developed today in order to have (1) enough solar capacity available in one decade (2) at a competitive price Source: Solarwatt Source: Phönix Source: SMA © BSW-Solar 2009 Solar Markets Germany, September 15, 2009, Athens

Red Letters: Countries with Feed-in tariff schemes Photovoltaic World Market 2008 New installed PV Power 2006: 1600 MWp 2007: 2650 MWp (+66%) 2008: 6000 MWp (+126%) USA 342 MW Red Letters: Countries with Feed-in tariff schemes Source: Preliminary figures of National PV Associations, Stryi-Hipp, Feb 26th 2009 © BSW-Solar 2009 Solar Markets Germany, September 15, 2009, Athens

Solar Markets Germany, September 15, 2009, Athens Development of the German PV market PV Market Data 2008 Newly installed power 1 500 MWp Total installed power 5 334 MWp No. of total systems installed ca. 500 000 Turnover 2008 6 Bln € / 8.1 Bln $ Employees 45 000 Total installed PV power in MWp Milestones 1991: First Feed-in Law (FIT with low tariffs) 1991-1995: 1 000 roofs program (grants) 1999-2003: 100 000 roofs program (loans) 2000: Renewable Energy Sources Act (EEG) (FIT) 2004: Amendment of EEG (FIT) estimation © BSW-Solar 2009 Solar Markets Germany, September 15, 2009, Athens

2. Size of PV installation The differentiation of tariffs create different market segments in Germany. 3 main PV market segments 2. Size of PV installation Feed-in tariff < 30 kWp > 30 kWp > 100 kWp > 1000 kWp On buildings and on noise protection walls € 46.75ct € 44.48ct € 43.99ct -8% -10% -25% € 43.01ct € 40.91ct € 39.58ct € 33.00ct Façade integration plus € 5ct -100% Free land / ground mounted € 35.49ct € 31.94ct 1. Retail market 2. Project market 1. Location of PV installation 3. BIPV market © BSW-Solar 2009 Solar Markets Germany, September 15, 2009, Athens

Germany: Market Segments of on-grid PV Systems Size of the system Ground Roof top BIPV mounted Effort of mounting Image: Solarwatt residential homes 1-10 kWp multi family houses, public + social buildings, farms, commercial plants 10-100 kWp Image: Sharp Image: BP Large and very large commercial > 100 kWp Image: Schüco Image: Geosol Image: Grammer 55% 37% 8% Est. market shares in 2010 <1% Image: Sharp © BSW-Solar 2009 Solar Markets Germany, September 15, 2009, Athens

Green building market PV XXL (power plant) market On global level we see in 2009 a differentiation of the PV market in layers, segments and niches. Market level PV premium market (solar architecture, BIPV, etc.) Green building market High end Solar mobility market PV XXL (power plant) market PV idealist market (eco-, green) PV auto-supplier / ESCO market PV investment market PV low end market (DIY, kits, cheap/standard) PV off-grid market Low end Past (-2008) Short-term (2009-10) Medium-term (2011+) Time © BSW-Solar 2009 Solar Markets Germany, September 15, 2009, Athens

Solar Markets Germany, September 15, 2009, Athens Amendment of the EEG from June 2008: Feed-in Tariffs for PV will be reduced faster as of 2009 Degression rate of feed-in tariffs Up to 2008: 5% / 6.5% (roof top/ground) 2009/2010: 8% / 10% (< / >100 kWp) 2011/2012: 9% Below/above corridor: -1%/+1% +1% +1% +1% 9% 9% 8%/ 10% est 8%/ 10% -1% -1% -1% Degression rate 5%/6.5% © BSW-Solar 2009 Solar Markets Germany, September 15, 2009, Athens

Solar Markets Germany, September 15, 2009, Athens © BSW-Solar 2009 Solar Markets Germany, September 15, 2009, Athens

Solar Markets Germany, September 15, 2009, Athens © BSW-Solar 2009 Solar Markets Germany, September 15, 2009, Athens

Solar Markets Germany, September 15, 2009, Athens © BSW-Solar 2009 Solar Markets Germany, September 15, 2009, Athens

Solar Markets Germany, September 15, 2009, Athens © BSW-Solar 2009 Solar Markets Germany, September 15, 2009, Athens

Solar Markets Germany, September 15, 2009, Athens Conclusions Photovoltaics has a great potential worldwide – but it is necessary to build up market and industry today The German PV market is growing continously Driver of the market is the feed-in tariff system (EEG) There are already more than 40.000 jobs created in the PV sector in Germany Prices for PV modules were reduced significantly in the last 6 months, therefore investments in PV systems are much more attractive today © BSW-Solar 2009 Solar Markets Germany, September 15, 2009, Athens