Solar industry to protest against deep German subsidy cuts

The German environment minister, Norbert Roettgen, yesterday announced plans for significant cuts in the solar electricity subsidy scheme, with just two weeks notice before the proposals come into effect, on the 9th March.

The cuts will see tariffs reduced from between 20.2 and 29 per cent. The original plan was for the cuts to take place in July, but now they will come into effect in March. Tariffs will also see further cuts in monthly intervals until May next year. Protests are expected in the country with reports of at least 50 companies involved in a demonstration today.

The minister says that the boom in installations as a result of the subsidies could only be maintained by system reform. It currently installs 7.5GW per year, but this is expected to fall to less than half by 2013 given the proposed cuts.

The anger over the cuts seems to be caused by the speed and size of them, rather than the plan to cut subsidies. It is clear that with solar installations becoming cheaper, subsidies had to be reduced, but protesters feel that the move which coincides with similar moves by the UK, France and Italy is too much too soon.

Some have also commented that the move will be easier for Germany’s solar industry to take as they are more developed than a country like the UK. The UK has recently passed 1GW of installed capacity, well below the size of the German industry.

The CEO of the Renewable Energy Association, Gaynor Hartnell says, "Solar really deserves recognition in the [UK] government's renewable energy strategy now, with the price coming down like it is, there is no reason for it not to fill a prominent part in UK energy for 2020 and beyond. It needs re-examining in light of this milestone."