Germany will delay by two months planned cuts to incentives for the solar industry, according to a Reuters report.
The government’s ruling coalition said a 16% reduction in support for rooftop solar power systems will start June 1, rather than April 1.
The news, pushed shares higher for solar firms in Germany and abroad. But in the long-run reductions to domestic feed-in tariffs are expected to hurt German solar firms, which generally operate with higher costs than Asian competitors.
Germany’s generous feed-in tariff has made the country the number one market for solar over the last decade, and a reduction in demand is expected to ripple throughout the global market.
Those within the German government who support reducing incentives say the domestic industry is overly subsidized and needs to be able to compete globally.
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