Germany’s federally-owned KfW banking group is facilitating renewable energy and energy efficiency investments in Germany with EUR 100 billion (over US$130 billion) over the next five years. Germany is the world’s largest photovoltaic market and leading wind energy generator in Europe.

This boost is intended to decrease investment risk and accelerate the country’s move to renewable energy. Experts from Germany Trade & Invest, the Federal Republic of Germany’s foreign trade and internal investment agency, will be at this year’s Solar Power International trade show in Dallas, Oct. 18-20, to discuss the latest opportunities in Germany’s renewable energy industry.

“With the decision to abandon nuclear power earlier this year, it was clear that the road ahead would be challenging,” said Tobias Homann, a photovoltaic industry expert at Germany Trade & Invest in Berlin. “But Germany is in a very promising position to be the first industrialized country to rely entirely on renewable energy,” he added.

The new KfW loans and projects target a range of energy areas, including energy efficiency, smart grids, as well as wind and solar energy generation. In 2010, 40% of photovoltaic installations were financed by the KfW Bankengruppe.

Although the spotlight has recently been on wind energy, photovoltaic energy in Germany recently made headlines for surpassing hydropower in total energy generation. Photovoltaics continues to be a critical component in the energy transition, said a government spokesperson.

The implications of a grid parity market in Germany are wide reaching. As falling system prices are making solar electricity cheaper than power from the socket, this could spur homeowners to purchase rooftop systems. And with a preference among rooftop system buyers for high-quality products and local production, manufacturers located in Germany are able to market a German-made product with a significant competitive advantage.

This grid parity market shift is expected to create business opportunities for solar companies, as new market dynamics are accelerating development of energy storage, smart grid and smart home technologies, as well as financing, leasing, and utility business models.