The German government is looking to temper growth in solar panel installation in an attempt to protect consumers from rising costs. Angela Merkel's Christian Democratic Union fear that the escalating costs of solar power may lead to a fall in demand and undermine the acceptance of alternative energy.
The Financial Times Deutschland claim that CDU lawmaker and energy-policy expert Thomas Bareiss outlined the need for the government to cut the guaranteed gratuity per kilowatt hour for newly installed solar panels on January 1, 2011 in a letter to Merkel's Environment Minister, Norbert Roettgen.
Bareiss went on to say that, depending on demand for solar panel installation at the start of 2011, additional gratuity cuts for new installations may also need to be introduced later in the year.
On January 1, the annual burden placed on German consumers to help subsidise environmentally-friendly energy production will increase from to €8 billion to €13 billion.