German Solar Firms Seek Subsidy Cuts

14 January 2010 (Last Updated January 14th, 2010 18:30)

German solar energy companies are seeking a reduction in the state subsidy earlier than originally planned to avoid deeper cuts. The government intends to cut subsidies in the sector amid falling prices for solar panels as the industry is ready to accept lower aid. The industr

German solar energy companies are seeking a reduction in the state subsidy earlier than originally planned to avoid deeper cuts.

The government intends to cut subsidies in the sector amid falling prices for solar panels as the industry is ready to accept lower aid.

The industry has proposed a 14% yearly subsidy cut as compared to 9% under current law, the BSW-Solar industry association said.

Some have, however, called for a deeper cut than proposed by the industry pointing to the huge profits being earned by the companies at the expense of utility customers.

Solarworld chief executive officer Frank Asbeck said Germany will move the original 9% cut in subsidies forward to the middle of 2010 from the end of the year, according to Financial Times Deutschland.