Röttgen for further reductions in solar subsidies

18. January 2012 | Top News, Markets & Trends, Global PV markets | By:  Sandra Enkhardt/Shamsiah Ali-Oettinger

The Environment Minister is for stronger cuts in solar feed-in tariffs (FITs) in Germany. There will be a discussion with industry representatives tomorrow.

The German Budersrat.

Cuts to the German FIT are expected tomorrow. Image: Solarpraxis AG/Andreas Schlegel.

Federal Environment Minister Nobert Röttgen, from the CDU party, has decided that further cuts need to be implemented on solar subsidies to curb the massive expansion of photovoltaics in Germany. He apparently told the German "Handelsblatt Jahrestagung Energiewirtschaft" according to the German Press Agency (dpa), "We need an adjustment, and tomorrow I will speak with the industry".

It seems like a significant reduction is a necessity. He added that the suggestions indicated in the EEG (German Renewable Energy Act) for further FIT reductions were due to the drastic price decline of solar modules.

An installed capacity of 7,500 megawatts in one year, namely 2011, is also seen as too much, also from the point of view of grid connection and stability. Nevertheless, Röttgen wishes to hold Germany’s position as technology leader.

Röttgen has always been for a flexible ceiling for solar. He had also previously rejected a fixed cap of annual solar installations. He added that new proposals do not always lead to reliable predictions.

On Wednesday, pv magazine ran an exclusive interview with German Consumer Rights expert Holger Krawinkel, in which he advocated dramatic cuts to the photovotlaic FITs. This, he aruged, would not only ease the financial burden on the consumer, but also bring to end arguments as to photovoltaics being too expensive a technology.

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