DGAP-News: S.A.G. Solarstrom AG criticizes coalition's compromise on EEG Act


S.A.G. Solarstrom AG / Statement

25.02.2010 11:18 

Dissemination of a Corporate News, transmitted by
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The issuer / publisher is solely responsible for the content of this announcement.

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S.A.G. Solarstrom AG criticizes coalition's compromise on EEG Act 

Freiburg, February 25, 2010. S.A.G. Solarstrom AG (German security
identification number: 702 100, ISIN: DE0007021008), is severely
criticizing the compromise made by the Federal Government regarding the EEG
Act.  The additional reductions in the feed-in tariff planned for July 1
will have definite negative consequences for the solar industry in Germany
and will jeopardize innovation leadership and workplaces. This criticism
underscores the position the Freiburg solar company took in a discussion
between CEO Dr. Karl Kuhlmann and the Baden-Württemberg Environment
Minister Gönner, on February 5, and which they made clear by signing the
Freiburg Declaration on February 22. S.A.G. Solarstrom AG themselves are
hardly affected by the planned change, due to their international
orientation.

At the beginning of the week S.A.G. Solarstrom AG intensified their appeal
to the Federal Government to reconsider the planned reform by signing the
Freiburg declaration. Local energy providers such as Badenova and Ökostrom
Erzeugung Freiburg are supporting the declaration, as are the Fraunhofer
Institute, the solar companies S.A.G. Solarstrom AG, Solar-Fabrik AG and
Solarmarkt AG who are based in Freiburg, as well as the city of Freiburg
and the Chamber of Trade. As the headquarters of several leading
international research institutions and companies in the solar industry,
Freiburg is particularly affected by the planned reforms.

 'Even though the S.A.G. Solarstrom AG group of companies can absorb the
reductions in other markets, thanks to our international orientation, and
though we are not affected directly or to the same extent as many other
companies, we still view this decision as a threat to the innvoation
leadership achieved in the solar industry in Germany. In addition,
workplaces, especially in small and medium-sized craft businesses, are at
stake', says Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. S.A.G.
Solarstrom AG is criticizing, in particular, the lack of planning
reliability for all market participants - only about four months remain
until the reform comes into effect on July 1 - as well as the amount of the
additional reduction. Companies thus barely have time to adjust to the
changes in the market conditions. The CEO of S.A.G. Solarstrom AG therefore
anticipates, in the long-term, a wave of consolidation of medium-sized
solar companies in Germany and the loss of workplaces.

'We consider it an achievement that our discussions have helped to continue
support for both ground-mounted systems large industrial roof-top systems.
On the other hand, what is detrimental is the regulation that the own
consumption bonus has been increased to 8 cents, but only applies for
systems under 800kWp and will be subject to scrutiny again at the end of
2011. The own consumption bonus is strengthening local energy supply
structures, which is why a long-term, reliable solution should be found for
investors with regard to this issue', continues Kuhlmann.

'We are convinced that photovoltaics are foreseeably cost-effective and
will not require any subsidies in the long-term. However, the EEG Act has
supported the spread of this sustainable technology, boosted research and
development and ultimately, through the development of the market,
contributed to the fact that system prices could be lowered. It is
therefore very regrettable that the Federal Government is now making such a
reduction in these subsidies and is thus postponing considerably the point
in time at which photovoltaics will be able to compete with conventional
energy sources, even from an economic point of view', concludes Dr. Karl
Kuhlmann.

About S.A.G. Solarstrom AG

S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN:
DE0007021008) of Freiburg, Germany, are 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 produce solar energy at their own
plants.

S.A.G. Solarstrom AG's service portfolio covers the entire life cycle of
photovoltaic plants, including energy- and weather-data management, yield
reports, and remote 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 are considered pioneers in the solar
industry. Around 160 specialists work at the four locations in Germany and
subsidiaries in Italy, Spain, Austria, and Switzerland.

S.A.G. Solarstrom AG are listed on the open market, Entry Standard of the
Frankfurt Stock Exchange as well as according to the rules and standards
M:access 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
Tel.: +49-(0)761-4770-311
E-Mail: pr@solarstromag.com / ir@solarstromag.com 





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