Environment Ministry meets in Berlin to discuss German FiT future

Facebook
Twitter
LinkedIn
Reddit
Email

The German government met at the Environment Ministry in Berlin on January 13 to discuss cuts to the state-mandated solar incentives, including the feed-in tariff rate. These cuts have been anticipated for this year due to a steeper overall slide in costs. The FiT has been falling by about 8% per year before dropping 10% in 2010, reports Reuters.

No decision was actually reached at the meeting, yet officials at the two rounds of hearings said they expected a concrete decision on the FiT cuts soon.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

One certainty that did come out of the meeting was that the reductions would be moderate, as although there is an overall slide in costs, the government is wary of damaging the German PV industry and the jobs it creates. PV-Tech reported on this back in early December 2009; however, there has not been much development since then.

“There’s an agreement that the level of the support has to more closely track the speed of the expansion of photovoltaic power,” said Holger Krawinkel, an energy expert for the federal consumer protection agency lobby who was at the talks. “There are still divergent views on the concrete numbers. The Environment Ministry will evidently put forth a proposal early next week.”

The Environment Ministry is expected to make a new proposal next week. The ruling parties would then discuss the proposal. The next cut in FiT rates will be on either July 1 or on Jan. 1, 2011, although again, no decision has yet been made on this.

“Clarity on the outcome of the talks is key and needed quickly as it will impact the companies’ share prices. Also, it will be crucial whether the talks will result in a change of the EEG law or a one-off cut, as the former will take substantially longer to implement,” said Theo Kitz, analyst at Merck Finck.

Interestingly, the solar industry is actually proposing to reduce subsidies by as much as 14% a year, the BSW-Solar industry association said in a statement. As yet, no response has been issued by Merkel’s government on this proposal.

Industry analysts and stock markets have also been nervously anticipating the talks in Berlin, as any steep cuts could hit the PV sector and its prices hard.

PV-Tech will be keeping an eye on the talks in Berlin and will be bring you any updates as soon as they are announced.

Read Next

September 10, 2025
A project claimed to be Germany’s largest agriPV plant has been commissioned in the north-east of the country.
September 10, 2025
Renewables developer rPlus Energies has secured US$100 million in tax equity financing for its 125MW solar PV plant in the US state of Idaho.
September 10, 2025
Indian solar module manufacturer Vikram Solar reported a 79.7% year-on-year increase in revenue for the first quarter of FY26.
September 10, 2025
Cordelio Power has started commercial operations at its 150MW Winfield solar project in Lincoln County, Missouri.
September 10, 2025
Voltalia is seeking compensation for the ongoing curtailment of its Brazilian solar and wind fleet, which has exceeded expectations this year.
September 10, 2025
Japanese solar cell manufacturer Toyo Solar has sold 1.6GW of solar PV cells in the first half of 2025, driving revenue of around US$139 million.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines