Renewable Energy - Bosch buys solar power firm

03/06/2008

German boiler manufacturer Bosch is to make a move into the renewable energy sector after buying a solar energy firm, it has been reported.

The company has paid €1.1 billion (£864 million) for a contolling share in German solar firm Ersol, according to the Guardian.

Last month, Franz Fehrenbach, chief executive of the boiler firm, said that Bosch planned to use its cash reserves to make acquisitions after the credit crunch reduced prices.

As a result of the move, the share price of other German solar energy firms increased, with expectations that other companies would follow suit, the newspaper reports.

Germany has become the world's largest market for solar power, due to the feed-in tariff system which pays premium price for renewable energy.

In the UK, Bosch employs around 5,000 people and is one of the county's largest European investors.

Products manufactured by the firm include the Worcester Bosch Greenstar 30 CDi System gas boiler and the Heatslave combi oil boiler.