Lull on Space
Major photovoltaic (PV) projects will only be carried out with difficulty in Germany in 2011. Solar energy subsidies are sinking drastically; outdoor installations in fields have not even received commission since the summer. For this reason, project developers are pushing to move onto large-scale rooftops and abroad with their power plants.
The photovoltaic (PV) wholesaler and project developer Phoenix Solar is turning its back on Germany. Up to now, the company from Sulzemoos in Bavaria has sold its solar components and installations almost exclusively on the German market. Because for the time being, it no longer believes there will be additional growth in the local PV demand, due to severe cuts in solar energy subsidies, it is now promoting its internationalisation.
“Our focuses are currently France and Italy, as higher returns can be generated here due to the higher irradiation levels and better subsidy rates”, says Investor Relations Manager Anka Leiner. The Mediterranean about-turn is paying off, “We received orders to plan and build two solar farms in Italy and Slovakia in July and August”, explains Leiner.
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Photo gallery to the topic "Lull on Space"
No Break:
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From January, photovoltaic subsidies will decrease. For this reason, solar installers are still feverishly trying to connect their solar installations to the grid this winter.
(Photo: Schmidtlein)
Taboo for PV:
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From July 2010, solar modules can no longer be installed on agricultural crop land.
(Photo: SAG Solarstrom)
Football as a Solution:
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Stadium rooftops, like this one in Mainz, offer copious amounts of space for solar installations.
(Photo: SMA)
Sights set on Italy:
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Many German solar companies are pushing towards Italy in 2011. The sunshine state is very attractive due to its high levels of solar subsidy.
(Photo: Solarworld)
Like Phoenix, many German project developers are currently realigning. These companies are seeking and securing space, calculating profitability, obtaining planning permission, taking care of financing and planning the installations. They are doing this for small solar rooftops and for giant megawatt (MW) farms. To date, business has gone marvellously because lots of investors were found thanks to sinking module prices with generous subsidies. However, these will be more conservative from now on, especially for major projects. The German Renewable Energies Act (EEG) hits outdoor installations more ferociously than rooftop installations: In 2010 alone, the subsidy tariffs in this segment were reduced by a total of up to 26 percent. On 01 January 2011, the payment will be reduced by another 13 percent. As a consequence, operators must accept lower returns, demand is reducing and the profits of companies are dwindling. “The margins for all those involved will reduce”, forecasts Ralph Schemmerer, Chief Financial Officer of system supplier Gehrlicher Solar.
