In early pre-market trade the U.S. company with the most German exposure, First Solar, is up 1/2%.
Shares of German solar-power companies Solarworld AG, Q-Cells SE and Phoenix Solar AG climbed after Chancellor Angela Merkel’s incoming government retreated from threats to cut their subsidies.
The government will talk with the solar-energy industry about possible “adjustments” to avoid “excessive subsidies,” according to the coalition contract published Oct. 24. Solar power is an important technology for the future, it said.
“This is a positive surprise,” Daniel Kluge, spokesman for the Berlin-based German Renewable Energy Federation BEE lobby group, said in a phone interview. “After all the tough talk, this is a sensible way to proceed.”
Earlier language drafted by lawmakers for Merkel’s Christian Democratic Union and her Free Democratic Party allies pointed to reductions in 2010 solar-power subsidies. They wanted “quite an enormous” cut in solar-power prices, Gudrun Kopp, the FDP’s energy spokeswoman, said in an Oct. 15 interview.