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  • Supported Collector Area in M 40,000: Promoting Renewable Energy

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    Funding for solar thermal arrays in Baden-Württemberg peaked at 40,000 square meters in 1992-1995 when the state provided upfront investment bonuses, but collapsed to just 10,000 square meters in 1996 when funding switched to low-interest loans instead of bonuses. In contrast, the national German solar thermal market grew over 50% from 1995 to 1997, showing that upfront bonuses were more effective for promoting solar thermal systems than loans.

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    Figure11.6

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    Funding for solar thermal arrays in Baden-Württemberg peaked at 40,000 square meters in 1992-1995 when the state provided upfront investment bonuses, but collapsed to just 10,000 square meters in 1996 when funding switched to low-interest loans instead of bonuses. In contrast, the national German solar thermal market grew over 50% from 1995 to 1997, showing that upfront bonuses were more effective for promoting solar thermal systems than loans.

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    Supported Collector Area in M 40,000: Promoting Renewable Energy

    Uploaded by

    energinnova
    Funding for solar thermal arrays in Baden-Württemberg peaked at 40,000 square meters in 1992-1995 when the state provided upfront investment bonuses, but collapsed to just 10,000 square meters in 1996 when funding switched to low-interest loans instead of bonuses. In contrast, the national German solar thermal market grew over 50% from 1995 to 1997, showing that upfront bonuses were more effective for promoting solar thermal systems than loans.

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    Funding for solar thermal arrays in Baden-Wrttemberg Supported collector area in m2 40,000

    30,000 Funding is switched to loans 20,000

    10,000

    0 1992 1993 1994 1995 1996 1997 1998

    The market collapsed in 1996 when the incentive to promote solar thermal systems was switched from upfront investment bonuses to low-interest loans in the state of Baden-Wrttemberg. In contrast, the market grew by more than 50 per cent thoughout Germany from 1995 to 1997.

    Figure 11.6 Upfront bonuses for solar thermal more effective than loans
    Source: Landtag Baden-Wrttemberg, 12/1840, 3635

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