The German government Monday passed a bill that foresees further
reductions of subsidies for electricity produced by photovoltaic solar
energy--such as rooftop facilities--depending on the amount of generation
capacity added each year.
However, a one-off cut to solar energy subsidies that Environment Minister
Norbert Roettgen last week said was being considered by the government, and
that was included in a draft of the bill dated May 30, was deleted without
replacement.
According to the bill, published on the website of the Environment Ministry
after a cabinet meeting earlier Monday, the government decided to maintain its
system of reducing solar subsidies by a base rate of 9% each year. This base
will continue to be complemented by a variable percentage rate, depending on
the how much new generation capacity is installed.
On top of the subsidy cuts at the beginning of each year, the government
intends to cap financial support further for solar facilities that are newly
installed in the second half of each year--again depending on how much capacity
has been added previously.
Roettgen's proposal to reduce solar subsidies by a further 6% in a one-off cut
effective March 2012 has been scrapped, according to the bill.
Germany
promotes photovoltaic solar energy facilities--mostly rooftop
installations--through feed-in rates that guarantee minimum prices for the
electricity they generate. Effectively, electricity consumers are paying for subsidizing renewable
energies.