Photovoltaics from a business perspective past, present, and future in Germany

Abstract

Solar energy plays a vital role in the transition to a greener global energy supply. As a decentralized energy source, the expansion of solar energy is not driven by energy suppliers and government as in traditional energy sources but is proliferating through the market through a variety of business propositions. Germany has, for a long time, been a pioneer in the field of solar. The country was the world leader in photovoltaics 10 years ago and continues to maintain a prominent position in this field. This master thesis seeks to investigate the most prominent business models operating in the German photovoltaics market. German photovoltaics companies are utilized as case study objects.
The research methodology adopts an exploratory approach, investigating a less known, less researched, and very dynamic market. Based on German legislation for renewable energy (EEG) as well as the photovoltaics technology itself, six business categories are proposed, consisting of three size segments and two ownership segments. Online research is conducted to map the German market, thus investigating the companies actively participating there. 122 relevant photovoltaic companies have been identified. Of those, 47 companies are deemed to be usable for further investigation. Based on carefully considered selection criteria, two case study objects per proposed business category were selected, resulting in 12 selected case study objects. The case study objects serve as representatives for their respective category and their business models are mapped on the Business Model Canvas (BMC), developed by Alexander Osterwalder. By this mapping, their business models are captured and the underlaying value propositions are made visible. Some notable companies mapped and analyzed in this report were Enpal B.V., 1komma5 Grad GmbH, and Enerparc AG, each with distinct strategies for how to conduct their business, targeting different segments in the German photovoltaics market.
The analysis includes a Master-BMC, which represents a collection of the 12 individual BMC mappings. The Mater-BMC gives an indication of more and less common occurrences within the business structure of photovoltaic companies. The attributes are discussed, with the companies serving as examples. Current trends in the photovoltaics market are highlighted, a prognosis for the future based on theory on technology adaptation is included, and where the technology is today is explained.
Finally, the research questions are answered, the prominent business models in the German PV market are identified, and the pros and cons are discussed.
This thesis serves as an introduction to the photovoltaics business world, accessible to both those with and without prior industry knowledge.

Popular Abstract

This work investigates prominent business models within the photovoltaics industry, to classify those models, and to gain a better understanding of their operations. Photovoltaics play a crucial role in the global transition to green energy, and the photovoltaic revolution is being driven by companies engaging in this industry. Germany was chosen as the geographical focus due to its long-standing leadership in photovoltaics and the maturity of its market.
Four distinct categories of prominent business models were identified: B2C PV turnkey providers, Solar parc developers, Contracting providers, and Solar parc investors. Additionally, two less dominant categories, named B2B PV turnkey providers and B2B roof leasing, were identified.
The analysis revealed that B2C PV turnkey providers and Contracting providers have experienced remarkable growth in recent years, capitalizing on reduced PV installation costs and increased electricity prices. Conversely, Solar parc developers and investors, primarily involved in large-scale PV systems, have historically relied on government incentives in form of EEG, a trend that persists to this day.
Looking ahead, it is anticipated that B2C-oriented categories will continue to grow into the largest market segments, as the photovoltaics industry is becoming less incentive driven. PV systems within these categories are likely to witness a stabilization in price reductions, aligning with current cost structures and adhering to Swanson's Law, which predicts price reductions of 20%, for every doubling of the globally shipped volume of PV modules. Categories dealing with larger PV systems will be the larger benefactors of further price reductions in PV modules, but can expect diminishing government incentives on the revenue side.
This research adopted an exploratory, mixed-methods approach, iteratively building on drawn conclusions, and laid a solid foundation for further research in the realm of PV business models. As part of the qualitative research, case studies were utilized to draw examples from real-world companies. The business models of the case study subjects were mapped using the Business Model Canvas framework developed by Alexander Osterwalder.
Through exhaustive online research efforts, a list of 123 active companies across six defined business categories was compiled. Twelve case study subjects were meticulously selected from this list based on financial and narrowness-of-focus criteria. Prominent companies such as 1komma5° GmbH, Enpal B.V., and Enerparc AG were among the 12 companies investigated in this research.
Love Per Sven Ossler
Berlin 2023

• author: Ossler, Love
• supervisor: Ola Alexanderson
• organization: Production Management
• course: MIOM05 20231
• year: 2023
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• keywords: Business Model Canvas, Alexander Osterwalder, Business Model, Photovoltaics, Germany, Erneuerbare-Energien-Gesetz, Solar, Case Study, Enpal B.V, 1komma5 Grad GmbH, Energiekonzepte Deutschland GmbH, Enerparc AG, Belectric GmbH, renewable energy, EEG, Greenovative GmbH, 1komma5° GmbH, Wegatech Greenergy GmbH, DZ-4 GmbH, Sunlife-Montage GmbH, Vario green energy Concept GmbH, Vispiron EPC GmbH & Co. KG, Pfalzsolar GmbH
• report number: 23/5722
• language: English
• id: 9139738
• date added to LUP: 2023-10-13 16:22:10
• date last changed: 2023-10-13 16:22:10