Solar industry at a turning point

Editorial by Dagmar Vogt, President of Berlin Solar Network e.V.

Germany‘s solar power industry has reached a turning point. Solar expansion measures resulted in energy cost savings to the tune of more than two billion euros in the first half of 2012. Renewable energy now accounts for more than one quarter of the energy mix, with solar energy alone contributing more than five percent. This is having a positive impact, because dangerous, environmentally unfriendly power plants from the fossil era can be taken off the grid. The long disputed compromise reached between the German federal government and the individual states on how to discontinue the subsidies provided under the German Renewable Energies Act (EEG) in a sensible manner means that the rate of solar expansion remains encouraging.

But major challenges lie ahead, as is clear from the wave of insolvencies affecting German module manufacturers. Pressure from the competition, particularly from Asia, is infinitely intense, because the market is being flooded with low-cost products and global demand cannot even begin to keep up. It is all about identifying and expanding niche areas to bring the country‘s traditionally strong research and development to life in the form of products and energy systems that are competitive and fit for the future. The institutions and companies based in Adlershof are a nucleus of industrial development and - I am convinced - will continue to play a decisive role in this key technology for the energy landscape in the future, too.

The stability of the overall political framework will remain all the more important, because German value creation prevails even if imported modules are installed. Last year, a total of around 18 billion euros were invested in the sector; around twothirds of this amount was invested in Germany. We, at the Berlin Solar Network, represent the entire renewable energy value chain and believe that its networked expansion is the most promising approach for the future. The energy revolution will only be a success if we have sustainable concepts presented as a perfect package, and a strong solar industry is an absolute must if we want to achieve this.