- 1: News.
- 2: About us.
- 3: Activities.
- 4: Photovoltaic market.
- 5: Solar thermal market.
- 5.1: + German market.
- 5.2: + Policy framework.
- 5.3: + International markets.
- 6: Contact us.
- 7: Letter of Enquiry.
Political framework: The Market Incentive Programme (MAP)
The Market Incentive Programme (MAP) was introduced in 1999 after an initial government programme (1995 to 1998) had expired. It is intended to support the generation of solar heat for domestic hot water and heating purposes. For the principal market of residential homes (single/multi family house), the "Bundesamt für Wirtschaft und Ausfuhrkontrolle" (BAFA - federal office of economics and export control) supports private investors and SMEs with grants for investments in solar thermal technology. Larger, commercial ST plants are eligible for reduced interest rate loans from the "KfW Bankengruppe" (KfW - the reconstruction loan corporation). The total overall budget for the support of renewable heating systems (including ST) within the MAP was EUR 350 million in 2008 and EUR 468 million in 2009.
The large number of applications received and accepted under the MAP in recent years has resulted in the scheme resembling a stop-and-go process. In 2003, for instance, the solar thermal market was booming as subsidies were raised temporarily but this was followed by a cutback in 2004. On account of the (good) results in 2005, the budget was reduced and the scheme temporarily blocked. It did not resume until March 2006. Due to the immense popularity of the programme, many applications for financial support had to be rejected towards the end of 2006, again because the funds had been exhausted. In June 2008, however, the government finally followed BSW-Solar recommendations and passed a "Renewable Energy Heating Act", which established a steady MAP budget of up to EUR 500 m per year for 2009-2012. The industry is now confident, that previous stop-and-go processes within the support programme are a thing of the past in Germany.

- German comsumers invest in solar thermal energy. Source: Wagner & Co.
The Renewable Energy Heating Act (EEWärmeG)
The Renewable Energy Heating Act provides significantly more investment security for the solar thermal sector. In addition to fixing the MAP budget, the law introduces renewable energy buildings obligations. These obligations require new buildings to cover a minimum share of their heat demand from renewable energy. Furthermore, the act provides opportunity for the German federal states to set up additional legislation in order to introduce building obligations for existing building stock. The Renewable Energy Heating Act came into force in January 2009 and the ST industry is confident that the act will trigger further market growth.
