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.