German PV subsidy cuts: yes no…oh yes!

Facebook
Twitter
LinkedIn
Reddit
Email

The new German Government didn’t spend much time after the recent election to propose changes in the FiT program above and beyond the planned yearly declines. Then under pressure from the PV industry and certain states, politicians became more conciliatory to less than ‘aggressive’ changes, even though it was never made clear what the degree of changes would inevitably be.

However, with the increasing belief of a growing number of industry observers and players, PV installations in the country are set for record levels, far beyond what the new Government would accept under ‘reasonable’ growth.

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

The catch is that while projections for installations this year have helped ease the pain of an industry struggling under the global economic recession, it looks increasingly likely that there will be more aggressive changes made to the FiT to counter the huge growth.

The industry will find that its arguments for a ‘reasonable’ approach to changes could fall on deaf-ears.

I was actually hoping that the MW installations didn’t reach the levels some are suggesting as this would help the industry argue effectively that a good FiT system is good for all. That would now seem to be under serious threat as Bloomberg reports that Germany’s Environment Minister, Norbert Roettgen was quoted as saying that there was now the situation of ‘overburdening’ and that a new mechanism would have to be flexible ‘to market conditions.’

I take that political speak to mean deeper cuts to the FiT than was expected after the pressure from the industry had sunk in. Whether we are back to the levels of cuts muted by the Government upon election or perhaps even worse, are impossible to tell at this moment.

One way to gauge the severity level is if proposals with more clearly stated aims are issued early next year so that they could even be implemented mid-year. If we get a more pragmatic approach adopted then implementation would occur for 2011 as per normal changes.

Read Next

May 15, 2026
ISC Konstanz is upgrading its cleanroom facilities to operate a fully integrated solar cell and module pilot line by Q3 2026. 
May 15, 2026
India installed a record 15.3GW of solar capacity in the first quarter of 2026, according to new data from market research firm Mercom. 
May 15, 2026
Indian rooftop solar company Fujiyama Power has commissioned a 2GW solar module manufacturing facility in Ratlam, Madhya Pradesh. 
Premium
May 15, 2026
PV Tech Premium analyses whether this new PV trade scrutiny on Ethiopia could be a sign of accelerated protectionism from US manufacturers.
Premium
May 15, 2026
While CfDs are the most attractive route to market in UK solar, EDF's Ross Irvine says that there are opportunities for corporate PPAs.
May 15, 2026
New Zealand utility Meridian Energy has received consent to build a 120MW solar PV project alongside a planned battery energy storage system (BESS).

Upcoming Events

Solar Media Events
May 20, 2026
Porto, Portugal
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Media Partners, Solar Media Events
June 2, 2026
Johannesburg, South Africa
Media Partners, Solar Media Events
June 3, 2026
National Exhibition and Convention Center (Shanghai)