[FONT=Arial, Helvetica]The PV industry was effectively spurred by the "100,000 roofs program," which from 1999 to 2003 produced 65,324 PV systems totaling 342 MW of capacity. The aim was to stimulate a new building-integrated PV (BIPV) market. The government initially stimulated this program by offering interest-free 10-year loans, waiving the last installment payment and guaranteeing a "feed-in" incentive of 8.5 euro cents per kilowatt-hour. With the beginning of the EEG on April 1, 2000, the PV incentive price jumped to 50.62 euro cents (US 66 cents). By the end of 2004, Germany had become the world's No. 2 PV producer and the world's No. 1 PV installer.
The amended Renewable Energy Act of 2004 assures continued activity in the German PV market. The base incentive remains 45.7 euro cents. This incentive is increased to 54-57 euro cents (US 70-75 cents), depending on the size for PV systems mounted on building roofs (the upper size limit has been eliminated). The incentive is further increased to 59-62.4 euro cents (US 77-81 cents) for PV systems integrated into building surfaces other than roofs (eg., walls).
Because the upper size limit for PV systems has been eliminated, even large ground-mounted systems are assured a revenue stream of 45.7 euro cents (US 59 cents) for 20 years plus the year of commissioning. The law also requires grid operators to give preference to renewable energy generators, and to guarantee connection to the grid even if that means upgrading their transmission facilities. They can recover their costs in the fees they charge for use of their facilities.