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Germany to cut solar subsidies
The German government has announced plans to cut subsidies for solar power in a move designed to reflect the rapid take-up of the technology and a drop in the price of solar panels.
The Environment Ministry has proposed a 15 per cent cut in feed-in tariffs for new roof-mounted solar panels from April. Feed-in tariffs for open-field sites and farmland installations would then be cut by 15 and 25 per cent respectively from July.
The policy decision in Germany follows a similar one made by the French government, which recently cut subsidies for solar power by 24 per cent. The German government says that the planned cuts are in line with the recent rapid rise in the uptake of solar power, but there are concerns in Germany's solar industry that they will result in job losses.
Germany is the world's largest solar photovoltaic market, largely due to the feed-in tariff.
"The proposed cut threatens the foundations of the German solar industry and the shift to an age of renewables. If the environment minister wants to implement his ambitious plans to base Germany's energy supply almost entirely on renewable energy by 2050, he must provide for reliable subsidy conditions instead of spooking investors," the BEE said in a statement.
The price of solar panels has fallen by one-third in the last year due to oversupply.
As part of a wider review of renewable energy subsidies, France last week announced plans to cut feed-in tariffs for rooftop system from 55 euro cents to 42 euro cents per kWh. The move is designed to prick a speculative bubble in the market, said the government.
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