Germany, France Adjust Solar Subsidies

Germany plans to reduce incentives for its solar industry, while France is increasing subsidies for certain types of solar installations.

Reuters reports that a government source said Germany is likely to cut feed-in tariffs for new rooftop and ground-mounted solar installation by 16% to 17% starting in April. The cut would be deeper and sooner than expected by the industry, according to the report, which notes solar shares dropped in response to the news.

A final decision is expected next week. Germany has been gradually reducing it generous solar subsidies in recent years. The subsidy was responsible for making Germany a leader in the solar industry, but the government feels the industry is healthy enough to survive with less support.

France, on the other hand is trying to build a domestic solar industry. The country’s energy minister annonced a revised feed-in-tariff structure that provides additional incentives to building-integrated photovoltaics (BIPV) installations. 

The feed-in tariffs (FIT) for BIPV will be tiered according to the type of building, according to a Solar Industry report. Installations that integrate components in a "visually appealing manner" will benefit from a rate of EUR 0.58/kWh–the highest FIT rate in the world.

BIPV installations for commercial, industrial and agricultural will receives EUR 0.50/kWh, while BIPV installations that are not fully-integrated will receive EUR 0.42/kWh.

Traditional, ground mounted systems in France generally receive EUR 0.314/kWh.

In comparison, the new FIT rate in Germany for systems installed in 2010 is expected to be EUR 0.39/kWh, down from EUR 0.43/kWh in 2009. Additional cuts are expected for 2011.

The Reuters report is available at the link below.

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Comments on “Germany, France Adjust Solar Subsidies”

  1. dennis dickinson

    should be cut compleatly
    there sould not be any subsidy for PVS.
    solar power is a cash cow. like nellis afb
    it’s just a bad investment like nellis cost $100m to make $1m worth of electricity.
    buy the way, the panles last 20 years that’s a loss of $80m. labor to run the scheem ie. the labor for monitoring & matinance, say 9 people @ $45k ayear?
    a 100watt 12volt panel over it’s life puts out $50 worth of power but cost $500 for that panel
    if it was viable, if at all, it would stand on its own acord.
    pluss that panel also carries the berden of about 314 kilograms of CO2.actualy more then that heat not included.
    thats1400 deg C + 750 deg C to make the silicon for the panels
    not smart or green

    Reply

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