Germany: Solar branch to provide alternative model for subsidy cuts

Before the meeting today with Norbert Röttgen, the representatives of the solar industry and the German solar industry association, BSW-Solar seem to have come to a common consensus. They want to present to the minister a model that suggests an alternative to the "half-yearly large reductions in subsidies" scenario. Their model seeks more frequent, smaller cuts as the "Financial Times of Germany" (Thursday edition) reported.

Röttgen had stated on Wednesday at a meeting that he wanted to significantly reduce the development of PV in the country. "We need an adjustment, but I am talking with the industry," he reportedly stated. Minister of Economics Philipp Rösler also asked for a cap on PV development and significant cuts in FITs.

According to the EEG (Renewable Energy Act) Amendement 2012, the cuts in subsidies will officially take place on 01 July 2012. The 2011 end-of-year-statistics that showed the strong three GW installation growth alone in December will probably give reason for half-yearly cuts up to 15 percent. That means, an annual 30 percent sinking of subsidies. The payment from mid-2012 will thus lie in the range of €0.2077 per kilowatt-hour for small rooftop installations and €0.1525/kWh for solar parks.