The German solar industry association (UVS) has revealed that although solar power equipment makers have almost doubled production over 2004, demand still outstrips supply.

Major manufacturers such as Degussa and BP are all but at maximum output until 2006, despite investment in capacity. A significant issue in the supply-demand curve is the lack of the silicon raw material.

Nonetheless, the industry is enjoying record growth with companies reporting up to 700% share price increases over 2004. Much of this growth has been engendered by the government decision to increase the minimum price of solar generated electricity. A combined capacity of 300 MW of solar installations were commissioned in Germany in 2004, compared to 150 MW in 2003.