Interesting FT piece on solar energy production in Germany, discussing the roles of government subsidies and the companies that are positioned to profit by building and installing photocells.  

(From the FT): "Germany has reinforced its status as the world leader in solar power generation, after less stringent cuts in renewable energy subsidies than had been anticipated.  

Germany boasts more than 50 per cent of the world’s installed solar power capacity, thanks to the subsidies, known as feed-in tariffs that give households with solar panels a fixed income for 20 years from electricity sold to the national grid."   Graphic courtesy of the Financial Times   ...

The resulting industry, with around 60,000 employees, has a turnover that could rise to €13bn (£10.2bn, $20.4bn) a year by 2010, compared with around €7bn in 2007, according to industry estimates. The country is the third largest producer of solar cells, with a 20 per cent market share, compared with China with 28 per cent.  

Experts predict that in the long term solar energy may provide up to 30 per cent of Germany’s power needs for electricity and hot water, compared with less than 1 per cent today. This is seen as vital, both to reduce greenhouse gas emissions, and for energy security after oil price increases and the decision to phase out nuclear power.  

Spiralling energy costs globally have spurred German demand for solar equipment used to heat household water.  

Many regional authorities have backed this sector – which is separate from the industry built around the feed-in subsidies – and Marburg in central Germany this month became the first city to require households to install such equipment as part of house construction or renovation. They face €1,000 fines if they refuse."  

If the experts are right and Germany's solar energy programs will be able to eventually supply 30% of the nation's electricity, the question offered is: "why in the world isn't our government making the same sort of investments?" . To put that 30% figure into better perspective consider that the U.S. generates (per the EIA for calendar year 2005) about 50% of our electricity from coal, 19% from Natural Gas, 19% from Nuclear energy, and 7% from Hydroelectric Plants.