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.