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Brief overview for German approximation to the solar power

Germany has probably become the world’s leader in solar technologies. How have they outperformed the concurrency?

First, they pledged for developing a whole value chain in order to maximize the benefit to the German population, instead of just promoting an electrical production. This chain initiates with raw material (most used is Silicon) treatment and transformation into wafers, cells and eventually modules, which will be later sold internally or overseas and installed by partners or third parties. Thus the revenues generated by incentives can be partially retained in the country while new jobs and investments are sustained even by non-German investors, which additionally bring capital, R&D and some other benefits. PV Silicon AG, Wacker-Chemie AG or QCells are some examples of German companies which can cope with not only the commercialization of PV modules but also the primary activities where investments and technical knowledge is essential.

In order to achieve the previous goals, by 2000 Germany deployed a feed-in tariff which provides a 20-year-guaranteed 0.457-0.624 euro/kWh incentive with an annual reduction of 5% per new arrivals, to compensate the constant drop in costs. Besides tax credits and VAT exemptions to commercial PV providers, training support, wage subsidies and R&D incentives, and state-of-the-art infrastructures as roads and IT, Germany has become a leading country in Solars even though his environmental conditions are worse than other Mediterranean countries such as Spain, Italy or Greece. Universities and institutes of research do also play an important role in the system.

Huge investments are done every year in the Eastern regions as part of a larger plan to improve development and reduce the differences with respect to the Western. This process is supported by the many semiconductor’s companies present in this area which would likely provide key synergies at silicon manufacturing.

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