The German PV solar power financing schemes reflected on the German PV market

Since the introduction of the 100000 roofs solar power programme and the new renewable energy law (REL) the German PV market is extending remarkably. The German KfW-financing in the framework of the 100000 PV roofs programme increased from 9 MW in 1999 to almost 80 MW in 2002. The perspectives for 2003 are in the order of magnitude of 100 MW and 2003 will become a further and probably final booming year for PV roof installations since the KfW-financing schemes level-off by the end of 2003. However, the production of PV modules in Germany comprises only one-third of the installed PV power. Two-thirds of the PV modules are imported. This shows that even a programme offering funding which is close to rate-based incentive is not necessarily followed by the PV industry to install new production lines and/or to extend existing production facilities. While Japan was able to increase the production capacity simultaneously with the programme, other countries, such as Germany, experience a delay of the extension of production capacities for PV modules with respect to the demand.