Uh-oh.
For years, Germany has been by the far the world’s largest solar market, thanks to an extremely lucrative feed-in-tariff program. But the cost of the program has become a political issue in Germany recently. And now a spokesman for the ruling Christian Democrats has warned that the government intends to reduce incentives for generating solar power as early as next year.
According to Bloomberg, Joachim Pfeiffer, the “energy spokesman” for the party, noted that there has been a massive increase in solar capacity in the country, at a time when solar-power panel prices have plummeted. “We will review the overall renewable energy law in 2011 but will undertake reductions in solar subsidies taking effect as soon as next year,” Pfeiffer said. Solar panel owners are paid as much as 43 Euro cents per kilowatt hour of power generated; Bloomberg says, while consumers in Germany generally pay about 20 euro cents per KwH.
In a research note this morning, Citigroup analyst Timothy Arcuri notes that the government’s stance is “decidedly more negative” than original expectations....MORE
Some of the pieces we've thrown in the link-vault since the the German elections:
Sep. 28 from the WSJ:
Solar-Power Incentives in Germany Draw Fire
As cheaper Chinese rivals threaten to outshine Germany's pioneering solar-power industry, the head of a leading German solar company is proposing a radical counteroffense: cut the generous government subsidies that let German solar firms flourish in the first place....Sep. 28 from Reuters:
U.S. solar stocks knocked by German demand fears
Oct. 11 from Reuters:
New German government won't slash solar power rates: source
Oct. 6 from SmallCapPulse:
Cowen’s Rob Stone Says Germany Could Install 3GW in 2009, and Spanish Markets Rebounding
