Germany is the world's largest PV market and its projected growth will secure this distinction. The organization PHOTON Consulting expects that by 2010 Germany will have over 6.5 Gigawatts (GW) of installed PV capacity, double the amount of any European competitor and the largest worldwide. Germany's increasing potential combined with growing worldwide demand means there are numerous possibilities for new entrants into the German market.

The principal market driver in Germany is the Renewable Energy Sources Act (EEG in German) that establishes a "feed-in" tariff on power generated from renewable sources. This law is especially favorable to PV energy. Utility companies must purchase energy generated from PV facilities at a rate that is sometimes twice the standard rate paid by private households. This legislation is an incentive for property owners to purchase solar panels and creates domestic demand for PV products in Germany.

Furthermore, the EEG does not have a cap; there is no set limit to the amount of electricity that could be produced from PV sources and therefore benefit from the "feed-in" tariff. PV products also have growing export potential as interest in PV increases in other countries. The IFO and EuPD study predicts that sales coming from exports will increase from a current 37% to 50% by 2010.

Growing sales, quick and efficient approval processes, proximity to suppliers and R and D expertise, a qualified workforce, and government incentives are all reasons that PV companies, such as First Solar, Arise Technologies, Nanosolar, and many others are succeeding in Germany.