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Germany stays top of solar power league

28 July 2008 | Market Watch: News From Around The Web | Source: FT
Germany has reinforced its status as the world leader in solar power generation, after less stringent cuts in renewable energy subsidies than had been anticipated.

Although not the world's sunniest country, Germany is among the global leaders when it comes to the number of solar panels adorning household roofs.

Germans have cashed in on generous government incentives to boost the country's reliance on the sun's energy.

Yet the industry needs to adapt to growing international competition to secure long-term growth, experts argue.

In what is seen as a victory for Germany's growing legion of solar cell makers and suppliers, proposed cuts in subsidies of up to 30 per cent have been watered down to only 9-10 per cent a year until 2011.The cuts replace annual reductions of around 5 per cent at present, under plans endorsed by the parliamentary upper house this month, after lower house approval.

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