The compromise was designed to resolve a political impasse over Chancellor Angela Merkel's plans to cut the feed-in tariffs for new rooftop solar installations because prices for solar power equipment have fallen so steeply in recent years.
The Bundestag agreed to the compromise from a mediation committee to cut the tariffs by 13 percent in July and then another three percentage points to 16 percent from October.
This could weigh on companies like Q-Cells, Phoenix Solar and Solarworld, which depend on demand from Germany, the world's biggest market for solar energy as measured by installed capacity, added Reuters.
The Bundesrat, which represents Germany's 16 states, is set to vote on the new proposals tomorrow. If it rejects the bill, the Bundestag could still overrule the upper house.
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