Centrosolar AG, has just announced plans for an enormous increase in pv module production in Wismar, in ex-East Germany (see my earlier post East Germany's final recovery from Communism into Solar Valley?)

According to Centrosolar, production will grow very fast:

" . . . from a starting level of 40 MWp in 2007, the capacity for 2008 as a whole will already double to 85 MWp, increasing again to around 165 MWp in 2009. Both locations will have a capacity of at least 195 MWp by the start of 2010. This corresponds to a revenue volume generated with solar modules of more than EUR 500 million."

A few months ago I was chatting to a solar expert who had visited a plant in Eastern Germany. What interested me was how viable were these businesses when Chinese production started gearing up. The point he made startled me - because solar factories receive such large subsidies in setting up in East Germany, it's actually going to be harder for China to compete. And lo and behold, it does seem to be true in Centrosolar's case too. Apparently, " . . . the project will probably receive a 30% subsidy from the state of Mecklenburg-Western Pomerania. The remainder will be financed by bank loans (My thoughts: probably from state-owned banks at a non-commercial rate) and leasing. "

One day, Germany's solar boom will end. But until it does, a lot of people are going to continue enjoying the ride.