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FiT degression expected at 1% per month by Bundestag

The German government has announced FiTs will be cut by 1% each month to commence in May and to run until November. However, the degression each month in the third quarter will be dependent on the number of new installations completed up until November. Effective February 2013, the FiT degression will depend on the number of new installations in the fourth quarter of 2012.

Proposed project deadlines have been set for projects registered by February 24, 2012, which will need to be on-grid by June 30, 2012. For large-size system projects registered before February 24, the completion date is expected to be before September 30.

Industry sources have told Digitimes that annual FiT cuts will not exceed 29%. However, if installations reach beyond 7.5GW, the highest possible FiT cut will be 29%. If the installations only reach 3.5GW, the FiT cuts will decrease to 15%.

As reported earlier this week, the Bundestag is to announce the FiT rate on April 1, which is expected by industry experts to be approximately 24%.


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