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Solar subsidies slashed in Germany

Posted June 2, 2008

Over-generous public subsidies put German solar companies in a quandry. A few weeks ago, TFN’s Christoph Amberger commented on the ludicrous situation created by government meddling in the markets: Right here in Solar Stocks: How German subsidies are benefiting China. Today, the industry was buzzing with news that Germany is cutting back on further subsidies. More below…

Baltimore — (TFN): Germany is slashing the subsidies that built its solar industry up to $8.8 billion in sales and made the country the world’s biggest market for panels that capture the sun’s energy.

Homes and businesses earn a government-guaranteed price of as much as 47 euro cents ($0.74) for each kilowatt-hour of solar power they generate, enough to run a vacuum cleaner for 60 minutes and double the market rate. Spain and France are copying Germany’s model as a way to nurture clean-energy industries that can reduce reliance on fossil fuels and cut gas emissions blamed for global warming.

Almost nine years of subsidized prices have made Germany the largest market for photovoltaic panels with 17 publicly traded solar companies, and about 40,000 employees, 13 times more than in 2000. While the government says it wants to keep the industry from growing too fast, manufacturers Q-Cells AG and Solarworld AG say that reducing the guaranteed prices will hurt profits and stall the technology’s emergence.

Read on to get the full story on the slashing of solar subsidies in Germany.

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Posted by J. Christoph Amberger · Filed Under Oil and Energy 

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