Germany's parliament approves solar cut compromise

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The upper house has agreed to cut the tariffs by 13 percent in July and thereafter 16 percent from October on. The decision follows yesterday’s agreement on a solar cuts compromise by the German lower house. The cuts came on top of regular tariff adjustments approved on an annual basis.

The upper house voted today after the original proposal to cut roof-top installations by 16 percent caused a political impasse. Due to the steep fall in prices of solar equipment and production, Chancellor Merkel proposed this decrease.

Merkel’s coalition government had insisted on deeper cuts, stating that support needs to be adjusted to the fall in solar prices by as much as 40 percent. The German Renewable Energy Sources Act states for the feed-in-tariffs to be retroactively added from the first of July.

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