Solar energy holds the highest potential among
renewable energy sources and is thus a vital driver
for a future shift in the primary energy mix. So far
little research has been done which takes into
account a truly interdisciplinary approach. The
paper outlines the political and legal framework for
the European solar energy market and analyses the
implications for the linkage between environmental
and social sustainability and profitability. Market
analyses show the effect of certain policies, room
for improvement as well as chances and risks from
the exporter's point of view. They identify
administrative hurdles which should be eliminated
and show as well that feed-in tariffs are much more
effective than direct investment subsidies. The
argument for taking into account external costs
is derived from life cycle analyses showing the high
degree of sustainability as well as profitability
for the society as a whole. Exporters will find a
very promising and dynamic and therefore volatile
market in some European as well as overseas
countries.