After four years of very dynamic growth, the European solar thermal (ST) market registers a 10 % decrease in sales in 2007, the European Solar Thermal Industry Federation (ESTIF) reports in a press release. Many factors contributed to a 33% decline of Germany’s market. ESTIF urges policy makers to implement solar obligations to speed-up the market penetration of solar thermal. "We have seen very positive trends in some countries, but a dramatic decline in the German solar thermal market”, says Gerhard Rabensteiner, President of the European Solar Thermal Industry Federation (ESTIF). "For us, this means: We need to make the benefits of solar thermal clearer to the consumers. And we urge policy makers to put an end to stop-&-go support. The industry needs a stable support framework for solar thermal."

Due to the unusual market development, ESTIF publishes provisional market estimations for 2007 already before the end of the year. The final market statistics for 2007 will be published, as usual, in June.

Dramatic decline of the German ST market; brilliant medium term perspectives

Good two digit growth rates are being registered in France, Italy and Spain, while Greece grew moderately and Austria is expected to stagnate in 2007, though at the highest per capita level in continental Europe. However, these positive developments have been more than outweighed by the dramatic decline of the German ST market, that dropped by at least 33% in 2007 compared to the exceptionally successful 2006 , when a 58% growth had been registered in Germany.

For 2008, the solar industry expects a return to growth, with accelerated growth especially in the Mediterranean countries. Also in Germany growth is expected, though it will likely take more than one year to achieve the market size of 2006. In the medium term, the perspectives for growth of ST remain brilliant, as the economic fundamentals are positive.

Upcoming EU Directive to promote renewable heating and cooling

The sector expects a strong push also from the upcoming EU Directive on Renewables that for the first time will include measures to promote renewable heating and cooling. Establishing more stable and effective political framework conditions is crucial to avoid stop-&-go market development, thus creating the conditions for achieving economies of scales, from the production lines to the local distribution and installation. Such temporary crisis like in 2002 and 2007 must be avoided in the future, as they can hit hardly several companies in a sector still largely dominated by SMEs, including small local installers.

Solar Thermal Action Plan

ESTIF has recently published a detailed position paper indicating the requirements of the solar thermal sector on the upcoming EU Renewables Directive and on national policies. Solarserver reported on the Solar Thermal Action Plan at www.solarserver.de/solarmagazin/newsa2007_02_e.html. Extensive guidelines on best practice policies can be found in that paper: www.estif.org/stap.

Full-Size chart on solar thermal market development:

www.solarserver.de/images/ESTIF_2007_gross.gif

2007-12-27 | Courtesy: ESTIF | solarserver.com © Heindl Server GmbH