This study looks at one of the emerging energy alternatives, solar energy.The gap between demand and supply of energy is huge, specially in developing countries like china and India.Most part of Europe is dependent on Russian gas for its winter supply of energy. Solar energy is one of the alternatives for energy in these countries, as fuel ( sunlight) is free and non polluting. Here the focus is on three countries Germany, USA and India. The choice is based on the emergence of the different needs of these countries, which are in different stages of development of solar energy. This makes an interesting observance.

1. Appendix Government A
Germany incentives and feed‐in tariffs
Source: BSW‐Solar 2008 (www.solarwirtschaft.com)
Table 2
Germany‐Feed‐in Tariffs for Selected Power Generation
Source 2002 2003 2004
Hydro (up to 500 kW) 7.67 7.67 7.67
Hydro (500 kW‐5 MW) 6.65 6.65 6.65
Landfill gas (up to 500kW) 7.67 7.67 7.67
Landfill gas (500 kW‐5 MW) 6.65 6.65 6.65
Biomass (up to 500 kW) 10.13 10.03 9.93
Biomass (500 kW‐5 MW) 9.11 9.02 8.93
Biomass (5 MW‐20 MW) 8.60 8.52 8.43
Geothermal (up to 20 MW) 8.95 8.95 8.95
Wind (onshore or offshore) 8.96 8.83 8.70
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2. Solar PV (5 MW) 48.09 45.68 43.40
Appendix Government B
Major market influences country wise
Austria In 2000 a Solar Campaign started comparable to the 'Solar na klar- campaign
in Germany. Based on the German experience, a further growth and
development of the market is expected. Furthermore, the supply side of the
market is becoming increasingly professional.
Belgium Since 1999, the regional and Federal governments and the utility sector have
developed a number of positive initiatives. Ambitious goals are set and a
number of tools to accomplish these goals are given (more or less in line with
the ASTIG/DSMT-recommendations).
Denmark The Danish market has been stagnating for some years - mainly due to a
doubtful approach of utility suppliers - after a successful period in the mid-
nineties. New positive political initiatives are under development leading to a
possible new impulse through solar-friendly regulations and stimulants. The
supply has developed strongly, in particular specializing in large solar thermal
plants.
Finland The market is expected to increase gradually due to expected increase in
district heating applications.
France Positive effects are expected as a result of strong new incentive programs and
through more 'open market policy' in the coming years. Further market
'increase is expected in combination with favourable climate conditions and
stimulants through implementation of ASTIG/ DSMT recommendation
Germany There are strong indications that the present market growth figures will
continue. Both the political as well as the strong industrial environment ( almost
completely incorporated in the traditional heating industry ) are expected to
maintain a stable condition for further growth. The high public awareness
triggered by the 'Solar na klar!' campaign and positive job creation effects are
in them- selves positive arguments and a stimulated political motive.
Greece A new National campaign is expected as a result of (re)newed commitment of
the government with regard to stimulate the solar market. Publicity effects in
conjunction with the upcoming Olympic- games in favour of a further solar
market development. Furthermore stimulation is focussed on new application
areas like cooling and partial obligation for commercial buildings.
Italy The Italian market continues to show strong development in the North. It is
expected that this development will gradually move to more Southern Regions
already in 2001/2002. There remains uncertainty on the development of
incentive programmes.
The Strong political commitments for renewables in conjunction with various
Netherlands incentive programs and national solar campaign (starting 2001/2002) will be
the basis for further market growth. Like in Germany the supply-side is strongly
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3. integrated in the existing heating industry.
Portugal There remains a political uncertainty on the introduction of incentives
programs. In more general terms incentive programs are expected to be linked
to Southern European initiatives.
Spain Growth finally started in 1999 - especially very successful in Andalucia.
Incentive programs are developed further, including legislation and obligatory
measures (Barcelona and others). Supply side and infrastructure is still to be
developed (an open and harmonized market will generate extra stimulants)
therefor the growth rate is tempered - but Spain is expected to be one of the
fast developing markets in EU.
Sweden Market mainly focusing on large projects, incentive programs are considered
and slowly started.
Switzerland Unfortunately the 'Campaign for Renewable Energy' in 09.2000 failed but in
2002 a new initiative to facilitate/stimulate solar with positive results is
expected.
UK Still only very few concrete renewable initiatives (for heating) are considered.
In general energy efficiency and renewables are starting to come on the
political agenda.
Incentives, which stimulate solar thermal systems in 11 European countries
Country Fiscal Measure Investment Regulation Organizational Others
Subsidy Measure
Austria - Increased At regional, - Self- - Favourable
investment energy construction financing,
allowance company groups (project
and local - Free or cheap financing,
level energy consult favourable
- Specific loans)
financing
schemes
Germany - Eco-bonus for At national, - Campaign - Favourable
sustainable building regional, - Specific loans
- Increased energy financing -
investment company schemes Solarthermie
allowance (eastern and local 2000
states) level
The - Favourable At national, - Energy - Campaign - Project
depreciation regional, performance - Long term subsidies
Netherlands - Tax deduction energy in building agreement - Solar city
- Green funds companies regulation - Specific award
- Energy tax and local financial
level - Exemption schemes
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4. from
- Energy building
saving fund permit
Switzerland - Tax At national, - Self- - Energy
exemption/reduction regional construction 2000
and local initiative - Solar
level - Central award
information
point
Denmark - Energy tax At national - Campaign - Solar
- C02 tax level - Danish Plan of Energy Plan
Special Action for Solar of Action
regulation Energy 1998-2000
in case - Energy 21
water
heater is
replaced
- Increased At national, - Agreement - Promotion and - Subsidy for
investment regional, in principle information bottom-up
Belgium allowance energy on campaign of initiatives
company exemption Flemish
- Tax exemption and local from authorities
(from advance levy level building
on immovables) permit
France - Tax reduction At national
- Reduced VAT level and
regional
level
Spain At regional - Obligation - Favourable
level in Barcelona financing
Portugal - Tax deduction At national - Favourable
- Reduced VAT level financing,
- Favourable (project
depreciation subsidy,
favourable
loans)
Sweden - Energy tax At national - RD&D
- CO2 tax and program
regional
level
United At local - Solar Clubs
Kingdom level project
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5. Appendix Government C
American Solar Incentives
American incentive programs are increasing. Recent introduction of 10 million Solar roofs by
2018, introduced by Mr. Sanders and California's Million Solar Roofs initiative (2005). Recently a
ban using land for solar power generation was taken back within two days due to massive
opposition, which indicates public involvement and support for solar programs in USA , specially
in face of rising oil costs.
Corporate Depreciation: Modified Accelerated Cost‐Recovery System (MACRS)
Corporate Exemption: Residential Energy Conservation Subsidy Exclusion
(Corporate)
Corporate Tax Credit: Renewable Electricity Production Tax Credit
Solar and Geothermal Business Energy Tax Credit
Federal Grant Program: Renewable Energy Systems and Energy Efficiency
Improvements Program
Tribal Energy Program Grant
Value‐Added Producer Grant Program
Federal Loan Program Energy Efficient Mortgage (EEM)
Energy Star Financing and Mortgages
Tax‐exempt Financing for Green Buildings, Renewable
Energy & Brownfield Redevelopment
Personal Exemption: Residential Energy Conservation Subsidy Exclusion
(Personal)
Production Incentive: Conservation Security Program (CSP) Production
Incentive
Renewable Energy Production Incentive (REPI)
Green Power Purchasing/Aggregation: Federal Government ‐ Green Power Purchasing Goal
Alternative Fuel Vehicle Incentives and U.S. Department of Energy's Clean Cities Program
Policies:
Source: www.dsireusa.org
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6. Appendix Government D
India Solar Program and NAPCC
India’s National Action Plan on Climate Change (NAPCC) sets out eight focal points for the
government’s sustainable development strategy through 2017. The NAPCC is likely to become a
significant driver of new investment opportunities in the country’s renewable energy portfolio,
and in solar generation in particular.
As the world’s second most populous country and second largest growing economy, India has
unique challenges in developing an energy supply adequate to meet the country’s development
needs, including providing electricity to the 44% of its population without grid access.
Solar power constitutes roughly 2 MW of the total approximate 12,400 MW of India’s grid‐
interactive renewable power, sourced by a total of 33 grid‐interactive solar photovoltaic plants
installed with financial assistance from the environment ministry. Decentralized solar energy
systems compose the larger share of India’s solar power and consist of 120 MW of photovoltaic
systems, a collector area of about 2.30 million square meters of solar water heating systems and
620,000 solar cookers, used for diverse applications including lighting, telecommunication, small
power requirements, battery charging, water heating, and cooking.
Existing incentives for renewable energy deployment include a system of renewable purchase
obligations (RPOs) (similar to renewable portfolio standards (RPS) in the U.S.), and various
funding for rural, urban, and industrial uses of renewable electricity.
The NAPCC seeks to consolidate India’s activities on renewable energy and climate, through
improved research and development on climate technologies and through prioritizing a
substantial increase in solar energy relative to the total energy mix. The NAPCC launches the
National Solar Mission (NSM), which must present a comprehensive planning document to the
Prime Minister’s Council on Climate Change by December 2008, including strategies for
delivering:
• Sufficient solar energy in “urban areas, industries, and commercial establishments” to
meet the targets defined in the NAPCC;
• Public‐private partnerships for rural solar thermal application development;
• Local solar photovoltaic production of 1000MW/year by 2017; and
• Concentrating solar power production of 1000MW/year by 2017;
The NAPCC additionally proposes a dynamic minimum renewable purchase standard, beginning
at 5% of the total grid purchase starting 2009‐2010, increasing by 1% each year for 10 years,
along with verification mechanisms and tradable certificates for renewable‐based power in
excess of the national standard, tradable among State Electricity
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7. http://climateintel.com/2008/07/22/solar‐energy‐in‐india‐the‐national‐action‐plan/
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