German government cannot find common ground on solar subsidies cuts


The German government struggles to reach common ground on the proposed solar cuts, according to Bloomberg. In an email statement it was said that the upper house failed to reach an agreement in a panel meeting. Talks will resume on June 27. The upper house representatives have voiced concerns that the legislation will hurt domestic producers like Solarworld even further.

“While this may spur hopes of tamer cuts, the Bundesrat has no legal authority to overrule,” Aaron Chew, analyst at the Maxim Group, explained in an emailed note. “While timing could be tweaked, the overarching spirit of the cuts [and the planned elimination of aid for plants larger than 10MW] is unlikely to change,” Chew said.

On June 18, the environment minister is meeting with state leaders to discuss the subsidies. After new German PV installations reached 7.5GW last year, the government suggested a reduction of the annual installations by half. The first plan to lower solar subsidies by about 29% was rejected by the upper house last month.

“Politicians are deciding about the future of photovoltaics in Germany,” said Carsten Koernig, managing director of the BSW-Solar lobby, said in an email statement on June 12. Solar companies will suffer if lawmakers “don’t make improvements quickly.”

Further information on the development of Germany's subsidies uncertainty can be found here.

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