S.A.G. Solarstrom AG: Planned change to German EEG Act jeopardizes innovation leadership
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Planned change to German EEG Act jeopardizes innovation leadership and workplaces in the solar industry
Freiburg solar companies reinforce criticism of planned change to EEG Act in talks with Environment Minister Gönner
Freiburg, February 5, 2010. S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008), Freiburg, has reinforced criticism of the planned change to the German EEG act, together with SolarMarkt AG, in talks with the Environment Minister for Baden-Württemberg, Tanja Gönner. Even if S.A.G. Solarstrom, who initiated the talks, is not affected, due to their international orientation, the Federal Government is jeopardizing both the innovation leadership as well as workplaces in German solar companies with their short-term plans for change.
Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG and Günter Elbrecht, CEO of SolarMarkt AG, once again heavily criticized the planned change to the German EEG Act in talks with Environment Minister Gönner.
“Germany has achieved a leading technological position in the photovoltaic market over the past few years“, says Kuhlmann. “The planned reduction in the feed-in tariff is putting this innovation leadership at stake.“ He believes that the market share of Asian manufacturers, who can produce at lower prices due to higher quantities and lower wages, will increase in the short to medium-term if Germany does not retain their existing competitive edge in technology. The investment options of German solar companies and the security of workplaces, however, depend to a crucial extent on the economic success in the domestic market – Germany is still the largest solar market worldwide – which is considerably influenced by the feed-in tariff. Taking related areas into account, up to 400,000 workplaces would be jeopardized. Günter Elbrecht, CEO of SolarMarkt AG, confirms this estimate: “The regulation will particularly affect small and medium-sized skilled trade businesses, such as electricians, who normally perform assembly and connection for the solar plants. We are also anticipating considerable impairment to the component trade for photovoltaic systems.“
Level and time of the planned reduction are critical
Dr. Karl Kuhlmann emphasized that the industry does not take a general negative view of a reduction in the feed-in tariff. However, the subsidy would be reduced too quickly with the planned regulation, so that companies would not have sufficient time to counter the competitive pressure through their capacity for innovation. “We are therefore advocating a moderate reduction of the feed-in tariff, as proposed for example by the German Solar Industry Association. With the regulation that is currently planned and the resulting cost pressure, the ground-mounted business in Germany will all but grind to a halt“, says Kuhlmann.
Economic costs of conventional energy forms are considerably higher
Critics of the feed-in tariff have been arguing in the past few months that by 2020, around €57 billion will have been spent on subsidies in the area of renewable energies. The S.A.G. Executive Board disagrees: “With conventional energy sources, the economic costs – which for example include final storage costs for radioactive waste and the damage caused by CO2 – amount to €120 billion per year, with power production of 600 billion kWh in Germany. Future generations will have to pay this bill and that is frequently ignored in discussions.“
Photovoltaics, on the other hand, are sustainable in every respect: “Both the consumption of energy used in production and the emission of CO2 have been earned back within 2 to 5 years. And the photovoltaic industry does not have the problems of final storage either.“ From an economic point of view, therefore, sponsorship of renewable energies is the wiser and more cost-effective method.
Minister expresses understanding of the criticism
Ms. Gönner, the Environment Minister for Baden-Württemberg, expressed some sympathy for the position of the Freiburg solar companies in the talks. “The unexpectedly high cost reductions in solar modules have resulted in an excessive subsidy, but the necessary adjustments must still be carried out with a sense of proportion.“ The minister assured that she would campaign in the legislative procedure for a postponement of the adjustments to July 1 of this year. "An appropriate approach is required to ensure planning and financing reliability. The amount of the reimbursements must also be discussed in detail“, the Minister said.
The Environment Minister has been on the CDU Federal Committee since 2000. In 2003 and since 2005, Gönner has also been a member of the Federal Technical Committee for the Environment, which advises on and develops concepts for sustainable environmental policy.
S.A.G. Solarstrom AG and SolarMarkt AG appealed to the minister to introduce the arguments that have been brought forward into the national political discussions in Berlin, in order to boost the competitive position of German solar companies, in particular those situated in Baden-Württemberg. Baden-Württemberg is one of the leading industrial locations nationwide for internationally recognized companies and research facilities in the field of renewable energies and therefore bears a particular responsibility in the discussion.
About S.A.G. Solarstrom AG
S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008) of Freiburg, Germany, are a manufacturer-independent provider of high-quality photovoltaic plants configured to customers’ individual needs. The group constructs efficient plants of all sizes both in Germany and abroad. S.A.G. also produce solar energy at their own plants.S.A.G. Solarstrom AG’s service portfolio covers the entire life cycle of photovoltaic plants, including energy- and weather-data management, yield reports, and remote maintenance, as well as insurance and financing. The group thus offers a comprehensive value chain in photovoltaics, from yield reports, planning, construction, operations, and monitoring to optimization, repowering, and deconstruction.Founded in 1998, S.A.G. Solarstrom AG are considered pioneers in the solar industry. Around 140 specialists work at S.A.G.’s four locations in Germany and subsidiaries in Italy, Spain, Austria, and Switzerland.S.A.G. Solarstrom AG are listed on the open market, Entry Standard of the Frankfurt Stock Exchange as well as according to the rules and standards M:access of the Munich Stock Exchange.
Further information: www.solarstromag.com
S.A.G. Solarstrom AG
Sasbacher Straße 5
79111 Freiburg
Investor Relations / Public Relations
Jutta Lorberg
Tel.: +49-(0)761-4770-311
E-Mail: presse@solarstromag.com
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