Spain will ease the sharp subsidy cuts for its solar industry that were announced last July, according to reports.
Energy Secretary Pedro Marin said yesterday the proposed cap on solar subsidies for 2009 will be raised from 300 megawatts (MW) to 500 MW.
The new proposal would raise the limit on ground-based photovoltaic (PV) installation to 300 MW and leave the limit on roof-mounted installations at 200 MW–for a total of 500 MW of photovoltaic power. The subsidy reductions will not apply to Solar thermal installations.
Spain decided to reduce the tariffs earlier in the year to slow the growth of the industry, which was causing the country’s subsidy payments to balloon. One survey showed that the solar industry in Spain has already installed 1000 MW of capacity in 2008, according to Reuters.
However the solar industry protested the proposed cuts, saying it would force many in the young industry to go out of business. And solar companies have begun shifting their attention to Italy, hoping the market there can take up the slack.
Marin reportedly made the annoncement after a meeting with the solar power lobby group AEF.
He said the revised proposal will be submitted to the cabinet for approval. The current subsidy framework is set to expire on September 29.
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