S.A.G. Solarstrom AG: The solar age has only just begun

S.A.G. Solarstrom AG: The solar age has only just begun

Freiburg, June 12, 2012. In the opinion of S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008), electricity from photovoltaic power is already capable of competing with the price for household electricity, both in Germany and in several other European countries. The photovoltaics specialist is thus anticipating further new installation rather than stagnation in the photovoltaic market, despite the ongoing difficult market environment and reductions in the subsidy.
The S.A.G. Group is presenting itself at the Intersolar from June 13-15, 2012 in Munich, in Hall B4, Booth 310.

'Grid parity at household electricity prices has already been achieved in Germany', says Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. 'The same should also apply for industrial electricity prices in two to three years. We thus find ourselves at the start of a very dynamic development. The solar age has only just begun'. Photovoltaic power has become established as an important pillar of a sustained and reliable energy supply and is in the transition phase between a subsidized market and a competitive market. 'Consumers can produce a kilowatt hour of electricity today, using a photovoltaic system, for considerably less than 20 Eurocents, in some cases. The peak prices at the electricity stock exchanges have dropped significantly, due to the increased feed-in of solar electricity', says Kuhlmann. 'The allegation that photovoltaic power is the reason for the increase in electricity prices is thus clearly false, but has unfortunately led to the government bringing the drive for competition with the industrial electricity price to an abrupt halt - and not just in Germany'.

Kuhlmann once again advocated reliable political framework conditions. A phase-out of scenarios that include subsidies is possible, provided these are not abrupt and unplanned. Planning reliability is required, as changes at short notice, as they are occurring in Germany, led to insolvencies and job losses in the industry. Despite the reductions in subsidies and the associated difficult market conditions, Kuhlmann still views the photovoltaic industry on a long-term growth curve: 'The advantages over conventional energy sources are outweighed. Photovoltaic power is local and can be used without a massive network upgrade, has an energetic amortization period of two to three years, is completely recyclable and provides affordable energy at peak periods around midday. The further development of storage options and the increasing electromobility will also boost the market.'

According to the European Photovoltaic Industry Association, 24.7 GWp was installed in Germany in 2011, and 69.7 GWp worldwide. Up to 2016, the installed power could more than double to 52.7 GWp in Germany and increase almost fivefold worldwide, to 342 GWp, according to estimates by the European Photovoltaic Industry Association.

The S.A.G. Solarstrom Group is presenting its service portfolio at this year's Intersolar 2012 from June 13-15, 2012 in Munich, in Hall B4, Booth 310 and is providing insights into projects in various European countries including projects with own consumption and direct marketing models. The internationally active photovoltaic specialists construct systems of all sizes, offer all services along the entire photovoltaic value added chain and boast a proprietary portfolio of photovoltaic systems with a current total output of 26.1 MWp. In 2011, the Group achieved sales of EUR263.7 million and an EBIT of EUR6.2 million.

About S.A.G. Solarstrom AG
.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008) of Freiburg i.Br., Germany, is a manufacturer-independent provider of high-quality photovoltaic plants configured to customers' individual needs. The Group constructs efficient plants of all sizes both in Germany and abroad. S.A.G. Solarstrom AG also produces solar energy at its own plants.

S.A.G. Solarstrom AG's service portfolio covers the entire life cycle of photovoltaic plants, including forecast and energy services, yield reports, and remote service and maintenance, as well as insurance and financing. The Group thus offers a comprehensive value chain in photovoltaics, from yield reports, planning, construction, operations, and monitoring to optimization, repowering, and deconstruction.

Founded in 1998, S.A.G. Solarstrom AG is considered a pioneer in the solar industry. Around 230 specialists work at the four locations in Germany and the foreign subsidiaries.

S.A.G. Solarstrom AG is listed in the Prime Standard of the Frankfurt Stock Exchange as well as according to the m:access rules and standards of the Munich Stock Exchange.

Further information: www.solarstromag.com

Contact:
S.A.G. Solarstrom AG
Sasbacher Straße 5
79111 Freiburg
Germany
www.solarstromag.com

Public Relations / Investor Relations
Jutta Lorberg
phone: +49-(0)761-4770-311

e-mail: pr@solarstromag.com / ir@solarstromag.com