German Solar Subsidies Are Questioned

Frank Asbeck, CEO of Solarworld AG, one of the Germany's top makers of photovoltaics, is suggesting that the country sharply reduce its generous solar subsidies. His proposition is controversial and does not appear to be widely supported among the country's other leading PV manufacturers. But it could have some resonance with Angela Merkel's conservative government, which consolidated its position notably in last week's national election. One immediate effect of that victory is likely to be reconsideration and possibly even the repeal of Germany's nuclear energy phase-out plan--Merkel has long advocated an "exit from the nuclear exit." Another could be a reduction in solar subsidies which free marketeers dislike almost by definition, and which appear now to be helping Chinese PV makers more than German.

Before the election, Germany's parliament decided to shave solar subsidies by 8-10 percent over the next three years. Asbeck has suggested cuts of about 15 percent, to be coupled with stricter quality and environmental requirements for photovoltaics exported to Germany.

 

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