This document summarizes a session on PV funding controversies. It discusses various national approaches to solar PV funding across Europe, with Germany having the strongest market due to a feed-in tariff program. However, the program has faced increasing controversy as installed capacities have grown rapidly. The document also profiles a German company that installed a 28kW solar PV system in 2008 and the business case for that investment under Germany's feed-in tariff program. Participants are asked to discuss solar PV funding in an online forum.

1. 1© 2010 Macademia
Session # 4 – November 4, 2010
TODAY’S TOPIC:
PV Funding – Controversy
Concept and Contents Copyright Macademia 2010; Copyright on pictures as indicated; no unauthorized use or publication
Picture Copyright to Macademia, no further use allowed without permission
Session # 4 – November 4, 2010
TODAY’S TOPIC:
PV Funding – Controversy
Concept and Contents Copyright Macademia 2010; Copyright on pictures as indicated; no unauthorized use or publication
Picture Copyright to Macademia, no further use allowed without permission

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Where are we now?
Session # 4 – November 4, 2010
Kick-Off Wind Solar PV Funding
Solar
Thermal

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What we will cover
• Continue Solar PV
• Different national paths of PV funding
• An investment example / guest expert
• Get participants’ views and questions
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Your visiting scholar today:
Alexander Jungk, Glasbau Rathmann, Germany
Picture Copyright to Thermovolt France S.A.S., no further use allowed without permission
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• National Programmes
• Installed capacities / PV solar power
• The electricity harvested
11 The Funding situation across Europe
Our Schedule for Today
Session # 4 – November 4, 2010

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• 2008 – 2010: Solar PV takes off…
• Feed-in tariffs and electricity prices
• Uproar in the media 2010
212 Recent controversy – the German example
Our Schedule for Today
Session # 4 – November 4, 2010

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• The PV system at Glasbau Rathmann
• Reasoning behind Alexander Jungk’s decision
• The type of system and its return
• Questions by participants
3 An investment example
Our Schedule for Today
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A Country
Before we start…
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B Data C Business
• Three new groups in the forum waiting for your comments

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Remember from last week – Solar exploding
Source: German Ministry of the Environment, Erneuerbare Energien in Zahlen, June 2010
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ElectricityGeneration
EuropeanUnion(TWh)

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• Various national funding approaches
• Installed capacities depending on type of
program and maturity of market
• Strong growing nations about to reduce
• 2010 about to become record year in Germany
11 The Funding situation across Europe
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Session # 4 – November 4, 2010
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InstalledCapacity
SolarPV(GWp)
Source: Handelsblatt Study, National Energy Administrations, European Photovoltaics Association; EDF, 2010.

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11 The Funding situation across Europe
• Strong growth from small base (Factor 10/ 2 yrs)
• Very high feed-in tariff until January 2010
• Still strong; SER asking for stable framework
• Market broke down after governm. set cap
• Currently 0.5 GW cap; difficult for investors
• New legislation on the way
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11 The Funding situation across Europe
• Strongest market worldwide
• Headwind increasing; domestic controversy
• Even after cuts, strongly growing
• (+ up to 9 GW in 2010; protests increasing)
• Amongst best output rates in Europe
• Socialist Premier with strong RE portfolio
• Small installed capacity but growing strongly
Session # 4 – November 4, 2010
Source: Handelsblatt Study, National Energy Administrations, European Photovoltaics Association; EDF, 2010.

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• The impact of the location
- Southern Germany vs. Spain / Provence, France
- 980 KWh per KWp/year vs. 1440 KWh per KWp/year
- Crucial impact on competitiveness of investment
2 The price for strong growth
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Location and irradiation level crucial to economics
Picture Copyright to Thermovolt France S.A.S., no further use allowed without permission
Session # 4 – November 4, 2010

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13 An Investment Example from rainy Germany
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• City of Remscheid
• 111,000 inhabitants
• Low solar irradiation level even
for German standards
• Esp. in Winter months amongst
rainiest German regions
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13 The company and its entrepreneur
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13 Long Tradition in Glass Services
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13 A new type of investment in 2008
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13 The installation at Glasbau Rathmann
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Type of system
Installed capacity
Period of planning
PV – silicon-based - polycrystalline
28 KWp
June – October 2008
Connected to grid December 2008

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13 The installation at Glasbau Rathmann
Session # 4 – November 4, 2010

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3 The installation at Glasbau Rathmann
Picture Copyright to Macademia, no further use allowed without permission
Session # 4 – November 4, 2010

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3 The installation at Glasbau Rathmann
Picture Copyright to Macademia, no further use allowed without permission
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13 Crucial Points for the Investment
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• The type of system selected
• The origin of the module
• The assumptions for the business case

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13 The Business Case
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Key Assumptions:
• Average irradiation hours / KWp installed
• Costs for installations, insurance,
maintenance
• Financing approach
• Control of system output / guarantee

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• Discussion with Alexander Jungk, Glasbau Rathmann
3213 Ask the investor
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3 Details on the system
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• Discuss Solar PV funding in the Forum
• Is this massive support necessary to develop the technology
• Does it make sense in countries like Germany?
• What would you recommend for your own country?
...and for next week, please:
Session # 4 – November 4, 2010

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Your visiting scholar next week:
Dr. Till Stenzel, Nur Energy, Great Britain
Session # 4 – November 4, 2010