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German Solar Feed in Tariff additional cut in mid 2011 almost certain unlike 2010 Drama

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Germany is almost certain to cut the solar feed in tariff in 2011 on top of the regular 13% decrease.Note Germany is the largest solar market in the world by far and installed an astounding 8 GW of solar panels in 2010.With almost 18 GW of total solar installations,the German solar energy capacity is almost half of the world’s capacity despite bad conditions for solar energy.Germany had set a target of around 4-5 GW of solar energy this year in the upper case and this has been vastly exceeded as solar module price cuts have made it attractive to install solar panels.

Now the Opposition coalition has agreed in principle to change the feed in tariff law for solar energy.Note Feed in Tariffs are a mechanism by which electricity generated from renewable energy sources are given higher tariffs.2010 was a tumultous year for German Solar Industry as policymakers negotiated almost for the whole year before cutting feed in tariffs by an additional 10-16% on top of the regular 10%.This means that in 1 year solar feed in tariffs in Germany will decrease by almost 35% and still more cuts are needed.

Here is how the 2010 feed in tariff story for Germany unfolded seeing numerous twists and turns with strong industry protests and a number of changes.

Germany solar FIT reduction seems final after 6 months of speculation

German Solar Feed in Tariff Story gets another Twist as Upper House refuses to pass the Law

German Solar FIT Reduction Compromise proposed between Bundesrat and Bundestag

Germany’s 2010 one off Solar Feed in Tariff Cuts finally pass after 9 months of Negotiations

German opposition backs new cuts for solar power aid

Germany’s main centre-left opposition parties have backed calls to make further cuts in support for new solar power installations, which may help the government to bring forward reductions in aid.Both the environmentalist Greens and Social Democrats (SPD), who enacted legislation under ex-chancellor Gerhard Schroeder that created the basis for a boom in solar investment, said they were open to paring back assistance the industry receives.

“In view of recent developments, a measured reduction in allowances for photovoltaics is definitely possible,” said Baerbel Hohn, deputy head of the Greens in parliament.The SPD is also open to the option of cutting back support, according to internal papers seen by Reuters on Tuesday.Germany’s Environment Ministry welcomed the news.

PG

Abhishek Shah

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