PRESS RELEASE Fundamental economics remain very positive for solar thermal European solar thermal market affected by strong decline in Germany’s heating equipment sales Brussels, 21 December 2007. After four years of very dynamic growth, the European solar thermal (ST) market registers a 10% decrease in sales in 2007. Many factors contributed to a 33% decline of Germany’s market. ESTIF urges policy makers to implement solar obligations to speedup 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”. ”We urge policy makers to put an end to stop-&go support”, says ESTIF president 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. 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. Solar thermal market grew at double-digit rates in France, Italy and Spain The longer statement published by ESTIF includes an analysis of the reasons for the difficulties of the ST market in Germany in 2007. 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. Return to EU-wide growth expected for 2008 2 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. ESTIF has recently published a detailed position paper (see www.estif.org – news of 9/11/2007) indicating the requirements of the solar thermal sector on the upcoming EU Renewables Directive and on national policies. Extensive guidelines on best practice policies can be found in the Solar Thermal Action Plan for Europe (www.estif.org/stap). Characters (incl. spaces): 2.874 Further Information: ESTIF weblink: www.estif.org Solar Thermal Action Plan: www.estif.org/stap ESTIF is proud to support the Sustainable Energy Europe Campaign: www.sustenergy.org Press Contact: Uwe Trenkner, Secretary General ESTIF Renewable Energy House Rue d’Arlon 63-65 B-1040 Bruxelles Belgium Tel. office: Tel. mobile: e-mail: Web: +32 2 546 19 38 +32 499 265 865 info@estif.org www.estif.org Please note: The ESTIF office will be closed 22/12/07 – 01/01/08 New EU Directive on Renewables to provide a push in the heating and cooling sector