Energy

http://www.renewables-made-in-germany.com/

The German Solar Thermal Market – Support Schemes & Market Development

November 15, 2011, Warsaw, Poland

Christoph Urbschat, eclareon GmbH Management Consultantson behalf of the German Federal Ministry of Economics and Technology

Energy

The Export Initiative “renewables Made in Germany”

Objectives of the Initiative

Launched by the German Parliament in 2002 and operated by the Federal Ministry of Economics and Technology

Main objectives:

to contribute to climate protection,

to stimulate the acceptance of renewable energy in other countries,

to showcase Germany’s technical and business expertise in the field of renewable energy,

to provide comprehensive support to SMEs as they tap foreign markets.

Services of Renewable Energy Export Initiative

Trade Fair Participation Fact-Finding Missions

Solar Roofs Programme Project Development Programme

Contact events

Information Material

Seminars and individual get-togethers with potential business partners from Germany

First-hand information about German renewable energy technologies

Face-to-face contact with experienced German companies in the renewables industry

Organized by local German bilateral chambers of commerce (AHKs)

CONTACT EVENTS

Internet portal: www.renewables-made-in-germany.comInformation about renewable energies made in Germany, companies and product profiles

Newsletter: www.renewables-made-in-germany.com/newsletterCurrent news and developments, information about projects, applications, upcoming events and more

Virtual market place: www.renewablesb2b.com International online business platform, unique virtual marketplace and portal for market information

INFORMATION AND BUSINESS OPPORTUNITIES ONLINE

Energy

Use of Solar Thermal Energy in Germany

Fossil Heat; 91.6%

(1,204.9 bn kWh)

RES Heat; 8.4%

(110.5 bn kWh)

Renewable Heat in the German Heat Consumption2009

Source: Agentur EE

Structure of Heat Supply from RES in Germany 2010

Source: BMU

Solid Biomass (Private Households);

51.5%

Solid Biomass (Industry); 17.1%

Solid Biomass (Power Plants); 5.1%

Liquid Biomass; 3.3% Biogas; 5.5%

Sewage Gas; 0.8% Biowaste; 8.6%

Solar Thermal Energy; 3.8%

Deep Geothermal Energy; 0.2%

Shallow Geothermal Energy; 3.8%

Mainly in use: Solar domestic hot water systems Growing share of combined systems for DHW and room heating support in Central Europe (Austria, Germany, France)Plastic absorber for swimming pools Collective systems for multi family houses, hotels, hospitals etc. is growing Solar district heating systems with and without seasonal storage Plants for process heating Solar thermal assisted cooling

Status of the Use of Solar Thermal Energy

© BSW-Solar

Development of the German ST market

Source: BSW-Solar

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

*0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2400

Flat plate Evacuated tube Trend 16% growth

An

nu

ally

in

stalle

d c

olle

ctor

are

a [

1 0

00

sq

m]

Market Data Solar Thermal in Germany 2010*Newly installed collector area

1.150 Mio sqmTotal installed collector area

14.0 Mio sqmGrowth 2009/2010

-26%No. of total systems installed

1.5 MillionTurnover 2009*

ca. € 1.0 bnEmployees*

20,000(Source: BSW-Solar)* Preliminary figures

Geographical distribution

Source: www.solaratlas.de

Development of key applications DHW & SH

Source: www.solaratlas.de

DHW

SH

Development of the European ST market

Energy

German support schemes for the promotion of solar thermal heat

Support schemes for the promotion of low temperature solar thermal installations

A. Investment subsidies B. Tax reductions C. Loans D. Certificate trading systems E. Solar building obligations F. Bonus models

German support schemes for the promotion of low temperature solar thermal installations

A. Market Incentive Program B. C. KfW Program Renewable Energies D. E. Renewable Heat Act F.

Market Incentive Program (MIP)

MIP subsidies investments in solar thermal installations (basic promotion and innovation promotion).

The promotion is given in the form of investment grants, being a fixed amount per m² gross collector surface.

The rate of the basic promotion may be increased by a bonus, if the promotion is allocated in combination with other measures.

The promotion is granted on the basis of the Renewable Energy Heat Act in conjunction with other administrative provisions.

KfW-Program Renewable Energies

The KfW-Program subsidizes investments in solar thermal installations with a size over 40m² collector surface, through the reduction of interest rates and amortization allowances.

The promotion is granted on the basis of the Renewable Energy Heat Act in conjunction with other administrative provisions.

Building Obligations: Renewable Energy Heat Act (EEWärme G)

The EEWärmeG is promoting solar thermal installations through the obligation to use heat generated from renewable energy sources in new buildings and through the allocation of subsidies.

Building to be constructed after the 01.01.2009, have to meet parts of their heat energy demand through heat generated from renewable energy sources. The obligation is addressed to the owner of the building.

Excluded from this obligation are buildings with a size under 50m², specified buildings with an extensive heat energy demand and installations, taking part in the emission trading scheme.

Details concerning the renewable energy heat obligation

Provision of heat demand in new buildings by alternatively: At least 15% by solarthermal systems, At least 50% biomass (e.g. wood pellets), liquid biomass or natural heat

(heat pump) oder At least 30% by biogas with combines heat and power systems

Fulfillment of obligation for solar thermal: One / tow family buildings: min.: 0.04 m² collector surface per square

metre used space Multifamily buildings: min 0.03 m² collector surface per square metre

used space

Combination of different technologies are possible

The Federal States may pass own Renewable Heat Legislation, however only regarding the obligation to use RES in existing buildings. The State of Baden-Württemberg has exercised this right.

While MIP supports voluntary investments into RES, the RES Heat Act obliges to investments which do not get subsidies (General rule: No promotion of an obligation!).

If obligation is over fulfilled (usually the case with biomass), the additional share however can again be supported by MIP.

Building Obligations: Renewable Energy Heat Act (EEWärme G)

General criteria for a successful subsidy scheme

Long term nature

Continuity

Sufficient funding

Sufficient stimulation

Quick and simple application and processing

Reduction of technical requirements to a minimum

Development of German ST programmes over the years

1995: the federal government started the „Marktanreiz-programm“

Huge interest by investors, but limited financial resourcesBudget: appr. 30 Mio € over 4 years

2001: due to huge demand, the grants were reduced significantly2002: market dropped down by 40%

2006: market boom due to huge oil and gas prices and worry about security of supplyBudget: appr. 120 Mio €/a2007: Market decline, increase of subsidy

1999: budget increase to appr. 60 Mio € per year

Beginning of the 90ies: some of the German „Bundesländer“ (federal states) gave grants for solar thermal systems

Limited resources, different conditions in the different states

2008: Boom 2009: Building obligation, support , progr. budget increase2010: temp. stop of subsidy progr., market decline2011: Increase of subsidy for comb. systems

Effects of the Market Incentive Program (MIP)

MAP: Support for refurbishments in the building stock

Basic support:

Combined systems for DHW and space heating receive 120€/m² collector surface in 2011. From 1.Jan. 2012 systems receive only 90 €/m².

Bonus for the replacement of boilers:

Old oil and gas boilers that are being replaced by modern condensing boilers in combination with solar thermal receive a bonus of 600 Euro (from 1.Jan. 2012: 500 Euro).

Regenerative combination bonus:

Replacements of old oil and gas boilers by renewable technologies in combination with solar thermal receive a bonus of 600 Euro (from 1.Jan. 2012: 500 Euro).

Energy

Participating Companies

Participating German Companies

Company Representative

Ratiotherm Heizung und Solartechnik GmbH & Co. KG

Sascha Emig

Steca Elektronik GmbH Werner Gut

LCS Solarstrom AG Renata Sylwia Wawrzyczek

ECO//SUN GmbH Dr.-Ing. Stephan Zurnatzis

Energy

Thank you for your attention.

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