New German Government May Cut Solar Subsidy

There are concerns within the solar industry that Germany’s new coalition government will cut generous subsidies for solar energy production. 

Chancellor Angela Merkel’s conservatives and the Free Democrats (FDP) have agreed to review levels of support for the solar industry next yea, according to Reuters report. However, an unnamed source told the news agency any cuts to feed-in tariffs will be modest. 

FDP and Christian Democrats have been pushing for cutting incentives under Germany’s Renewable Energy Act by up to 30%. But Reuters’ source said cuts would more likely be around 15%. 

The news has affected the share prices of German companies like Q-Cells (QCE.DE), SolarWorld (SWV.DE) and Conergy (CGY.DE).

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