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Germany plans PV cuts of over 30 percent

According to initial media reports, Germany’s politicians want to implement sharp cuts, earlier than scheduled, to its photovoltaic subsidies. Furthermore, the guaranteed tariff should be limited at 90 percent. The ministers will, however, officially present their plans tomorrow.

Germany will unveil its new solar incentive plans on Thursday, February 23.

Deutscher Bundestag/Simone M. Neumann

Both the Ministries of Environment and Economics have already agreed on the changes to be made to Germany’s solar subsidies, according to Reuters and Handelsblatt Online.

Included in the changes is an over 30 percent reduction in the feed-in tariffs (FITs) for certain photovoltaic installations, including solar parks, say the media reports, which cite information from government and industry sources. Meanwhile, a cut of 20 percent has been suggested for small rooftop photovoltaic installations and, according to Reuters, a cut of 25 percent for mid-sized systems.

It is also planned that the tariff changes will come into effect on April 1, instead of the original July 1 date. Additionally, the cuts are expected to be more than 15 percent, and guaranteed payment will be limited to 90 percent. Beyond this amount, the solar energy can then be sold on by the plant operator. Thus, the cuts are deeper.

Environment Minister, Norbet Röttgen (CDU) and Minister of Economics, Philipp Rösler will present their plans tomorrow, Thursday, February 23, at noon in Berlin. In an initial statement, Germany’s solar industry association, BSW-Solar, has said it is worried about the outcome, based on the media reports.

"Additional cuts in the order of 20 to 30 percent are not manageable and will slow the development of solar energy," said the statement. "Against the background of the recently adopted energy policy, the proposed cuts are proof that the government is not serious about the development of renewable energies."

Translated by Becky Stuart.