1. Energy http://www.renewables-made-in-germany.com/ The German Solar Thermal Market – Support Schemes & Market Development November 15, 2011, Warsaw, Poland Christoph Urbschat, eclareon GmbH Management Consultants on behalf of the German Federal Ministry of Economics and Technology

2. Energy The Export Initiative “renewables Made in Germany”

3. Objectives of the Initiative Launched by the German Parliament in 2002 and operated by the Federal Ministry of Economics and Technology Main objectives:  to contribute to climate protection,  to stimulate the acceptance of renewable energy in other countries,  to showcase Germany’s technical and business expertise in the field of renewable energy,  to provide comprehensive support to SMEs as they tap foreign markets.

4. Services of Renewable Energy Export Initiative  Trade Fair Participation  Fact-Finding Missions  Solar Roofs Programme  Project Development Programme  Contact events  Information Material

5.  Seminars and individual get-togethers with potential business partners from Germany  First-hand information about German renewable energy technologies  Face-to-face contact with experienced German companies in the renewables industry  Organized by local German bilateral chambers of commerce (AHKs) CONTACT EVENTS

6.  Internet portal: www.renewables-made-in- germany.com Information about renewable energies made in Germany, companies and product profiles  Newsletter: www.renewables-made-in- germany.com/newsletter Current news and developments, information about projects, applications, upcoming events and more  Virtual market place: www.renewablesb2b.com International online business platform, unique virtual marketplace and portal for market information INFORMATION AND BUSINESS OPPORTUNITIES ONLINE

7. Energy Use of Solar Thermal Energy in Germany

8. Fossil Heat; 91.6% (1,204.9 bn kWh) RES Heat; 8.4% (110.5 bn kWh) Renewable Heat in the German Heat Consumption2009 Source: Agentur EE

9. Structure of Heat Supply from RES in Germany 2010 Source: BMU

10.  Mainly in use: Solar domestic hot water systems  Growing share of combined systems for DHW and room heating support in Central Europe (Austria, Germany, France)  Plastic absorber for swimming pools  Collective systems for multi family houses, hotels, hospitals etc. is growing  Solar district heating systems with and without seasonal storage  Plants for process heating  Solar thermal assisted cooling Status of the Use of Solar Thermal Energy

11. © BSW-Solar Development of the German ST market Source: BSW-Solar Market Data Solar Thermal in Germany 2010* Newly installed collector area1.150 Mio sqm Total installed collector area14.0 Mio sqm Growth 2009/2010-26% No. of total systems installed1.5 Million Turnover 2009*ca. € 1.0 bn Employees*20,000 (Source: BSW-Solar) * Preliminary figures

12. Geographical distribution Source: www.solaratlas.de

13. Development of key applications DHW & SH Source: www.solaratlas.de DHW SH

14. Development of the European ST market

15. Energy German support schemes for the promotion of solar thermal heat

16. Support schemes for the promotion of low temperature solar thermal installations  A. Investment subsidies  B. Tax reductions  C. Loans  D. Certificate trading systems  E. Solar building obligations  F. Bonus models

17. German support schemes for the promotion of low temperature solar thermal installations  A. Market Incentive Program  B.  C. KfW Program Renewable Energies  D.  E. Renewable Heat Act  F.

18. Market Incentive Program (MIP)  MIP subsidies investments in solar thermal installations (basic promotion and innovation promotion).  The promotion is given in the form of investment grants, being a fixed amount per m² gross collector surface.  The rate of the basic promotion may be increased by a bonus, if the promotion is allocated in combination with other measures.  The promotion is granted on the basis of the Renewable Energy Heat Act in conjunction with other administrative provisions.

19. KfW-Program Renewable Energies  The KfW-Program subsidizes investments in solar thermal installations with a size over 40m² collector surface, through the reduction of interest rates and amortization allowances.  The promotion is granted on the basis of the Renewable Energy Heat Act in conjunction with other administrative provisions.

20. Building Obligations: Renewable Energy Heat Act (EEWärme G)  The EEWärmeG is promoting solar thermal installations through the obligation to use heat generated from renewable energy sources in new buildings and through the allocation of subsidies.  Building to be constructed after the 01.01.2009, have to meet parts of their heat energy demand through heat generated from renewable energy sources. The obligation is addressed to the owner of the building.  Excluded from this obligation are buildings with a size under 50m², specified buildings with an extensive heat energy demand and installations, taking part in the emission trading scheme.

21. Details concerning the renewable energy heat obligation Provision of heat demand in new buildings by alternatively:  At least 15% by solarthermal systems,  At least 50% biomass (e.g. wood pellets), liquid biomass or natural heat (heat pump) oder  At least 30% by biogas with combines heat and power systems Fulfillment of obligation for solar thermal:  One / tow family buildings: min.: 0.04 m² collector surface per square metre used space  Multifamily buildings: min 0.03 m² collector surface per square metre used space Combination of different technologies are possible

22.  The Federal States may pass own Renewable Heat Legislation, however only regarding the obligation to use RES in existing buildings. The State of Baden-Württemberg has exercised this right.  While MIP supports voluntary investments into RES, the RES Heat Act obliges to investments which do not get subsidies (General rule: No promotion of an obligation!).  If obligation is over fulfilled (usually the case with biomass), the additional share however can again be supported by MIP. Building Obligations: Renewable Energy Heat Act (EEWärme G)

23. General criteria for a successful subsidy scheme  Long term nature  Continuity  Sufficient funding  Sufficient stimulation  Quick and simple application and processing  Reduction of technical requirements to a minimum

24. Development of German ST programmes over the years 1995: the federal government started the „Marktanreiz- programm“ Huge interest by investors, but limited financial resources Budget: appr. 30 Mio € over 4 years 2001: due to huge demand, the grants were reduced significantly 2002: market dropped down by 40% 2006: market boom due to huge oil and gas prices and worry about security of supply Budget: appr. 120 Mio €/a 2007: Market decline, increase of subsidy 1999: budget increase to appr. 60 Mio € per year Beginning of the 90ies: some of the German „Bundesländer“ (federal states) gave grants for solar thermal systems Limited resources, different conditions in the different states 2008: Boom 2009: Building obligation, support, progr. budget increase 2010: temp. stop of subsidy progr., market decline 2011: Increase of subsidy for comb. systems

25. Effects of the Market Incentive Program (MIP)

26. MAP: Support for refurbishments in the building stock Basic support: Combined systems for DHW and space heating receive 120€/m² collector surface in 2011. From 1.Jan. 2012 systems receive only 90 €/m². Bonus for the replacement of boilers: Old oil and gas boilers that are being replaced by modern condensing boilers in combination with solar thermal receive a bonus of 600 Euro (from 1.Jan. 2012: 500 Euro). Regenerative combination bonus: Replacements of old oil and gas boilers by renewable technologies in combination with solar thermal receive a bonus of 600 Euro (from 1.Jan. 2012: 500 Euro).

27. Energy Participating Companies

28. Participating German Companies CompanyRepresentative Ratiotherm Heizung und Solartechnik GmbH & Co. KG Sascha Emig Steca Elektronik GmbH Werner Gut LCS Solarstrom AG Renata Sylwia Wawrzyczek ECO//SUN GmbH Dr.-Ing. Stephan Zurnatzis

29. Energy Thank you for your attention. eclareon GmbH Luisenstraße 41 10117 Berlin Tel: +49 30 246 286 90 Fax: +49 30 246 286 94 Internetseite: http://www.eclareon.com