Germany’s economy ministry plans to end subsidies for smaller solar power systems such as rooftop panels, according to a draft law seen by Reuters, pointing to lower prices for new solar cells and the government’s drive to rein in energy costs, reported Reuters.
“Subsidies for systems with an installed capacity of up to 25 kilowatts will be discontinued,” the draft law says.
The conservative-led ministry argues these systems are often economically viable without subsidies, provided producers – often private homeowners – themselves use lots of the electricity they produce.
Here are some details:
- A ministry spokesperson on Friday did not directly comment on what he called a leak, but said the ministry is working on new rules and hopes they can be discussed by the government by the end of March.
- “Too little attention has been paid to cost efficiency and security of supply in the energy system,” the spokesperson said.
- Despite the proposed changes, the ministry reaffirmed Germany’s goal of increasing the share of electricity generated from renewable energies to 80% of gross electricity consumption by 2030, up from around 55% last year.
- Assuming the cabinet supports the plan, parliament would have to pass the bill for the new rules to come into effect.
- The opposition Green party and the solar industry criticised the proposal. “If the draft law is implemented in its current form, tens of thousands of jobs in the solar industry and the achievement of climate targets would be equally at risk,” solar industry association BSW said.
