German policy makers look poised to deliver the solar industry a jolt of good news
A compromise plan to reduce the country’s generous solar feed-in tariff would cut the subsidies less than expected. With the plan gaining ground in the parliament, German solar stocks moved higher, though solar stocks traded in the United States did not follow suit.
The new proposal would trim subsidies for power that rooftop solar panels feed into the grid by 13 percent, instead of the 16 percent previously anticipated.
Subsidies for ground-mounted systems would fall 12 percent, instead of 15 percent, and military and industrial installations would see an 8 percent cut instead of an 11 percent one.
The initial reductions had been expected by July 1, but were hung up when the Bundesrat upper house of parliament didn’t sign on. The upper house will vote on the new reductions on Friday.
The new plan could still be turned aside, but the Bundestag lower house could overrule the vote.
The smaller cuts would be a welcome reprieve for the industry. Solar companies have been anticipating slowing demand in the world’s largest solar market – Germany – even as purchases accelerated earlier this year in anticipation of the cuts.
Despite the compromise proposal, expect the battle over tariffs to continue. Opposition Social Democrats say they worry about job losses even these lessened cuts would bring.
