Too Little Money for Innovations

Technological progress could come to a standstill for German solar manufacturers.
International competition is threatening to leave German photovoltaics manufacturers in the dust. Speedy cost reduction in the production of solar cells could ward off the looming second-class status. But in these times of tough price wars companies are left with few resources for research and development.

A clear direction in regard to solar politics is lacking in German government. First it exacerbates the competitive condition for the German photovoltaic (PV) industry by sudden cuts in solar funding then it attempts to soften the blow by increasing research funding. 100 million euros will reportedly be available to companies for research and development (R&D) by 2013 provided that the companies themselves invest 500 million euros in technological improvements. 50 million euros come from the coffers of the Federal Ministry of Education and Research (BMBF), with the Federal Environment Ministry (BMU) supplying the remaining 50 million. "The structural upheaval in the global PV market is endangering Germany's technological and market leadership," states Ullrich Bruchmann of the BMU's research department. This is why the federal government is attempting to flank the pending restructuring process through R&D offers. Until now the BMU and the BMBF have provided 60 to 80 million euros annually for PV research.

Nobody predicted that solar companies would be in need of assistance at present. PV had quickly regained momentum after the crisis. "We expect at least 50 percent growth in 2010," exclaims Carsten Körnig, managing director of the German Solar Industry Association (BSW). The strong demand is already creating bottlenecks: Customers must often wait several months for their solar systems due to a shortage in inverters.