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Germany — World Leader in Photovoltaics

Research: A titanium photovoltaic cell © Hahn-Meitner Institut, Berlin

PV equals clean energy – no fossil and nuclear fuels, no damage to the planet. Germany is the world’s largest photovoltaics market with approximately 1,150 MWp* of newly installed PV power and a turnover of 3.7 billion euros in 2006.

Continued double-digit growth is expected. The main market driver is the German Renewable Energy Sources Act (EEG): owners of PV installations currently receive a payment, called a feed-in tariff, of 37.96 to 54.21 euro cents per kilowatt hour, guaranteed for 20 years.

Aside from its own market, Germany offers easy access to all other rapidly growing European markets, such as Spain, Italy and France.

Photovoltaic companies from all over the world are finding significant opportunities for investments in Germany along the entire value chain.

Germany has a dense network of producers, suppliers, and research and development. Close cooperation with numerous PV research institutes (e.g. Fraunhofer) and equipment manufacturers within short distances allows for rapid advances in production technologies and processes in order to facilitate further cost reduction. Due to the extensive experience of engineering companies and local authorities in photovoltaics, quick implementation of PV projects is possible.

Projects: solar panels
© Nordrhein-Westfalen Tourismus e.V.

Local production further ensures faster time-to-market, avoids high long-term transport inventories, and reduces exchange rate risk. Local producers also benefit from "Made in Germany" quality and reputation. Germany offers an excellent pool of skilled and flexible workers, state-of-the-art infrastructure, and a reliable investment environment. Moreover, in eastern Germany, investors benefit from investment incentives of up to 50% of total capital expenditures as well as wages up to 30% below western European standards and low unionization rates.

Some of the world’s leading companies, including Q-Cells, Solarworld, Conergy, Schott Solar and First Solar, have already recognized this favourable investment framework and established major facilities in Germany.

*Mwp - abbreviation for peak megawatt. A peak megawatt equals 1,000 peak kilowatts. A peak kilowatt is the unit used to measure the standardized power output (rated output) of solar cells and photovoltaic modules. (source: Conenergy Europe – Industry Glossary)