The German solar industry is shocked about subsidy cuts

The Federal Environmental Minister Norbert Röttgen (CDU) and the Federal Minister of Economics, Philipp Rösler (FDP), have now agreed on a compromise for the subsidization of the solar industry in Germany, effective as of March 9.

Due to the great success of photovoltaics in 2010 and 2011, the proposed plan will reduce the subsidies by up to 30 percent, depending on the type of photovoltaic plant. The electricity from small roof-top-systems, up to 10 kilowatts peak (kWp), will be worth 19.5 EUR cents per kWh; up to 1,000 kWp 16.5 EUR cents. Large open space farms will receive 13.5 EUR cents per kWp. Subsidies for systems above 10 MWp will be dropped entirely. Additionally, buildings like barns primarily erected to install solar roof systems will benefit only from the lower open space systems subsidies.

To guide the solar power industry to the free market, with less dependency on subsidies, only 85 percent of the electricity from small rooftop systems will be subsidized. The remaining energy should be self-consumed or sold to the open market. For large open space plants this figure is raised to 90 percent.

Although the planned intervention is generally regarded critically in the industry, it will not mean the end of the German PV market, but rather make it more difficult for project developers to sell their PV projects to financial investors.

VisionConsult international, operating the aTradeon trading platform for all renewable energy sources, firmly believes that the support from the platform and the professionals behind will be valued more than ever in the German market: It will continue to bring swiftly project developers and financial investors together. 

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