Solar Association criticises German government plans to cut the Feed-in Tariff for solar energy

The German Solar Industry Association (BSW-Solar) has expressed sharp criticism of plans by the government coalition to reduce the feed-in tariff (FiT) for solar energy by 16% effective July 1st. The postponement of the reduction by three months in comparison to the bill put forward by the Federal Ministry for the Environment does not represent any substantial assistance to the industry. Politics had so far failed to address the real problem for the German solar industry, namely the full extend of all combined reductions planned until January 2011.

BSW-Solar Managing Director Carsten Körnig: “If these reduction plans are implemented, the industry will be threatened by a wave of insolvencies and the loss of thousands of jobs. This endangers the existence of many companies, particularly since a further major cut of the FiT is already in the pipeline for January 1st, 2011.” The solar industry is appealing to the German government to maintain Germany as a production location for the solar industry by reconsidering the reduction plans in the course of further legislation.