Spanish deputy energy minister Alberto Nadal is expected to announce a 10-20% cut to renewable subsidies by 21 June.
At a meeting between representatives of Spanish and foreign banks last month, it was concluded that government subsidies increased the costs for running the nation's electrical system, according to the Wall Street Journal.
Attendees of the meeting claimed the costs of running the renewable systems have been higher than the amount of money generated by actual sales of power to households and businesses.
Further to this, Anpier, the Spanish PV manufacturers association, has launched a campaign with testimonials from those affected by successive retroactive cuts in the country. The testimonials claim 40% in revenue had been guaranteed by the state which has now been taken away causing “a state of economic bankruptcy and personal despair” amongst manufacturers.
The Spanish solar energy sector has a debt of about €30,000 million according to the Spanish PV industry association UNEF, although it is unclear how much of this is attributable to loans.