Photovoltaics in Germany - Market and technical development
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1 Photovoltaics in Germany - Market and technical development Gerhard Stryi-Hipp Managing Director Bundesverband Solarindustrie, BSi (German Solar Industry Association) Stralauer Platz 34, Berlin, Germany Tel , Fax stryi-hipp@bsi-solar.de
2 Bundesverband Solarindustrie BSi German Solar Industry Association TASK Representing German solar producers and wholesalers in the solar thermal energy and photovoltaics sectors VISION A worldwide sustainable energy supply using solar energy ACTIVITIES Lobbying, political advice, public relations, market observation, standardization TIME Over 25 years of activity in the solar energy sector MEMBERS Approximately 100 solar system and component producers, importers, suppliers and wholesalers HEADQUARTERS Berlin BSi 2005 German PV Technology 2
3 Germany: Use of Photovoltaics More than 130,000 PV systems have already been installed 98% of systems are connected to the grid 50% multi family houses, public and social buildings, farms, commercial plants kwp 10 kwp - 1 MWp > 1 MWp 2-10 kwp 10% ground mounted large PV systems > 1 MWp 40% small PV systems on private residential homes 1-10 kwp Image: Voltwerk Image: Solarwatt Image: Solarwatt BSi 2005 German PV Technology 3
4 German Grid-Connected PV Systems Every kwh of solar electricity produced is fed into the grid, sold to the utility and payed with a fixed price Photovoltaic modules Feed-in electricity meter Inverter DC/AC Consumption meter BSi 2005 German PV Technology 4
5 Examples of Off-Grid Systems Thousands of off-grid (stand-alone) systems have been installed in Germany: Parking meters Traffic lights Cigarette machines Holiday homes Boats and mobile homes Garden lighting Pocket calculators... BSi 2005 German PV Technology 5
6 Data German Solar Market 2004 Newly installed power Newly installed solar area Total installed power Total installed solar area No. of newly installed systems No. of total systems installed Turnover 2004 Employees Market growth 2004 Market growth 2005 Solar Thermal 525 MW (therm) 750,000 m² 4,040 MW (therm) 5,770,000 m² 83, ,000 mio 550 [mio$ 660] 10,000 +5% +20% est. Photovoltaics* 360 MWp (elec.) 3,300,000 m² 768 MWp (elec.) 6,900,000 m² 40, ,000 mio 1,700 [mio$ 2,000] 20, % +20% est. *grid-connected BSi 2005 German PV Technology 6
7 History of the German PV Market 1991: Electricity Feed-In Act Right of grid access, feed-in of solar electricity and refund payment at fixed prices (approx [$0.11] per kwh) : 1000 Roofs Program Verification of PV systems grid compatibility : Consolidation Regional support programs, demo plants, development of the cost-covering refund payment system : 100,000 Roofs Program Low-interest loans for 300MWp of installed capacity 1/4/2000: Renewable Energy Sources Act (EEG) Solar electricity feed-in tariff of 0.51 [$0.64] per kwh 1/1/2004: Amendment to EEG Feed-in tariff of [$ ] per kwh 0 annually installed power in MWp German PV market development PV power installed annually and as total total installed power in MWp annually installed grid-connected annually installed off-grid total installed BSi 2005 German PV Technology 7
8 Subsidy Programs and Market Development in Germany 100,000 roofs program: Low-interest loans Renewable Energy Sources Act (EEG) Feed-in tariff per kwh Newly installed PV capacity Annual market growth I % interest 0.085c/$0.106c 12MWp % 0.506c/$0.632c 40MWp + 233% II % 0.506c/$0.632c 78MWp + 95% % 0.481c/$0.601c 80MWp + 3% % 0.457c/$0.571c 150MWp + 88% III c-0.574c $ c 360MWp + 140% c $ c 432MWp + 20% BSi 2005 German PV Technology 8
9 How the feed-in law works Principles Every PV system has to be connected to the grid by the utility Every solar kwh which is offered has to be bought by the utility Every solar kwh has to be payed with a fixed price over 20 years The feed-in tariff is reduced every year by 5% (for PV) Who has to pay the higher PV costs? The costs for PV electricity are covered by all rate payers: 0.56 TWh solar electricity sold for mio 283 [mio$ 340] (appr. 50ct per kwh) (data 2004) Fossil and nuclear electricity (and other renewables) utilities Consumption of 487 TWh Price private consumer: appr. 20ct per kwh Including 0.05ct for PV consumer Price increase for consumer: 0.25% BSi 2005 German PV Technology 9
10 German Renewable Energy Sources Act (EEG) Photovoltaic Feed-in Tariffs Feed-in tariffs for PV systems installed in 2005 Feed-in tariff per kwh up to 30 kwp kwp from 100 kwp on buildings and noise protection walls 54.53c 51.87c 51.30c Façade-integrated + 5c Open land (ground-mounted) 43.42c BSi 2005 German PV Technology 10
11 Façade-integrated Solar PV systems Facades BSi 2005 German PV Technology 11
12 Image:Solar-Fabrik Large Roof-Mounted PV-Systems Image: BP 400 kwp on the Freiburg Trade Fair Building 3.7 MWp on a factory building in Dingolfing BSi 2005 German PV Technology 12
13 Successful Market Development with EEG and 100,000 Roofs Program Increase in market volume from 10 to 360 MWp since 1999 More than 3 billion invested in PV systems since 1999 More than 1 billion invested in manufacturing plants for PV components about 40 companies produce silicon, wafers, cells, modules and inverters worldwide leadership by German companies and research organizations has been maintained Strengthened photovoltaics market structures Germany is the biggest PV market worldwide 20,000 jobs have been created and secured Drop in costs for PV systems of approx. 25% since 1999 and 60% since 1991! Increased export ability through increased production capacity Production building SMA BSi 2005 German PV Technology 13
14 Industrialization of German PV Industry New, automated production lines on all levels of the value chain Silicon, wafers, cells, modules, inverters, battery chargers, mounting systems Strong technological development New cell technologies, improved efficiency modules and inverters, control systems, building integration Production of modules and cells more than doubled in 2004 Further expansion is planned Q-cells PV cell production <= Solar-Fabrik PV module production => BSi 2005 German PV Technology 14
15 Activity Fields of the German Photovoltaic Industry Raw silicon Wafers Solar cells Solar modules Special modules Inverters/Bat. chargers Wacker Chemie ASI Intertech Deutsche Cell GSS ASS Aixcon PV Silicon Deutsche Solar Ersol Heckert-B.X.T. Glaswerke Arnold Dorfmüller PV Silicon RWE Schott Solar RWE Schott Solar Saint Gobain Kaco Silicon ingots RWE Schott Solar Shell Solar Scheuten Sunovations Siemens PV Silicon Sunways SMD Sunware SMA Q-Cells Solar-Fabrik Webasto Solar Konzept Solar Factory Solarc Sunways Solara Solarnova Steca Solarwatt Würth Solergy Solon Thin film Sunset modules Since 1999 more than one billion euros have been invested in strengthening and extending manufacturing plants Antec Sulfurcell Würth RWE Schott Solar BSi 2005 German PV Technology 15
16 Long-standing experience in Off-Grid Technology Example: PV Micro-Grids for Islands Three-phase PV battery system supplies the micro-grid on the Greek island of Kythonos with power BSi 2005 German PV Technology 16
17 Solar Power for Off-Grid Villages Example: In the Himalayas BSi 2005 German PV Technology 17
18 Why is Solar Energy Being Used in Germany? Germans know that the fast growing oil price shows that energy supply is limited due to the growing effects of the climate change we have to drastically reduce CO 2 emissions Solar energy has to be developed today because only renewable energy is sustainable solar energy is available everywhere solar energy is needed in the future energy mix the price will be reduced dramatically by mass production solar industry is offering future-oriented jobs solar energy will be a big worldwide bussiness Hurricane Katrina 2005 => We have to start the development of PV-technology and PV-industry today in order to have enough solar technology available in 1-2 decades at a competitive price BSi 2005 German PV Technology 18
19 Summary Germany is the largest PV market of the world The photovoltaic market is growing very rapidly, but growth is limited in 2005 by the shortage of silicon In Germany, almost all PV systems are connected to the grid The feed-in law (EEG) is a very powerful instrument to build up the PV market The German solar industry has invested very strongly in new production capacity German companies have a lot of experience in system design, financing, planning and mounting of PV-systems German companies are strongly interested in international cooperation in order to build up PV markets all over the world BSi 2005 German PV Technology 19
20 Thank you for your attention Image: BSi Schüco 2005 German PV Technology 20
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