We take account of the opportunities and risks related to climate change for our business activities. The World Electricity Market Opportunities arise from the upswing in the market for renewable energies, with competitive advantages over conventional forms of energy. Opportunities Risks for companies are higher insurance premiums due to more frequent storms/fires/ drought periods. The financial consequences of climate change were not estimated on a detailed quantitative basis because they are to be considered as positive overall in view of the nature of our business activities. Our company is not exposed more strongly than other companies to risks such as damage from more frequent storms/fires or costs resulting from drought periods and flooding. Current risks are largely covered by our insurance policies. Risk Report

In general, SOLARWORLD leaves it up to its employees to make their own decisions on how to save for retirement. In Germany, SOLARWORLD AG offers a company pension scheme for employees in the form of “direct insurance” and the “pension fund”, either funded by the employer or with transformation of salary into pension rights (with employer subsidy). Employees who were employed at the former Munich site are entitled to “direct pension commitments”, funded directly by the company. In 2008 the commitments amounted to 7,912 (previous year: 7,823¹) k€ . Noncurrent and Current Provisions There is also a separate fund for the payment of liabilities for the company pension scheme for a small number of senior executives, but this fund is not considered to be material (<40k€). In the USA there is a program for conversion of compensation rights to company pension rights. These are employer contributions rather than direct commitments. In this connection, SOLARWORLD provides employees at the US sites with 3% of their annual basic salary for a retirement pension scheme (401k Plan). There are no specific programs at the other sites. The amount paid into the programs is determined by the employees on conversion of compensation. Where funding comes from the employer, the amount is specified in the contract of employment. Participation is voluntary. On the basis of the data available to us, no statement can be made concerning the extent to which this will be used since this data has not been collected on a uniform basis so that it is impossible to draw up statistics. Human Resources

1) The 7,419 k€ reported in 2007 included only the long-term provisions.

Significant financial assistance received from government: In the reporting period, investment grants of 10,210 (previous year: 8,009) k€ were received – discontinued operations 0 (previous year: 161) k€ – and research grants of 2,353 (previous year: 3,678) k€. There is no government body holding shares in SOLARWORLD.

The term “locally based” is defined in a way that is analogous to our segments (IAS 14). Consolidated Financial Statements There is no company guideline under which preference is given to local suppliers. The geographical position plays a minor role in selecting suppliers since the equipment and commodity market is an international market. Most suppliers (95 percent or more, depending on the product at stake) are based in industrialized countries. In South Korea we are working with a local equipment manufacturer SOLARPARK ENGINEERING CO. LTD in our joint venture SOLARWORLD KOREA LTD. For our (not-for-profit) Solar2World projects we involve local partners as far as possible (in particular for rack technology and installation).

We are an international group and mainly recruit locally at our various sites. We try to keep the number of “expatriates” down, but we need some employees (senior executives) from our existing subsidiaries and from Head Office at the location because that is important for harmonization of the various facilities in the framework of the acquisition of former Shell activities. Under various non-discrimination provisions like the federal agreement on application of equal opportunities legislation (Germany), action plans (USA) and our groupwide Code of Conduct local candidates must not be given preference nor discriminated against in recruitment processes. Percentage of local senior executives: Germany 100 (previous year: 100) per cent, USA 83 (previous year: 76e) per cent, Spain: 100 (previous year: 100) per cent, Singapore 0 (previous year: 0) per cent and South Africa 100 (previous year: 100¹) per cent. The definition of “local” follows IAS 14 and thus corresponds to the “economic environment“; it is therefore analogous to our segments. Geographical Segments We define management starting from the first level as “senior executives”. We do not use the definition of the German Industrial Relations Act, since this would not be applicable to the whole of the group.

 1) In the 2007 report: incorrect classification of one employee as management staff

Our Solar2World projects actively involve the local stakeholders (i.e. members of the community, users) in the project design. Additional investments in infrastructure and services provided mainly for public benefit were not made.