German Parliament Approves Solar FIT Cuts, Aims To Slow Installation Pace

Posted by SI Staff on March 29, 2012 No Comments
Categories : Policy Watch

Controversial PV feed-in-tariff (FIT) reductions have been approved by Germany's parliament by a vote of 305 to 235.

FIT rates will be cut by up to 29%, depending on the type and output of the project, beginning April 1 for most installations, according to Bloomberg BusinessWeek. However, certain types of projects – such as brownfield installations – will be spared the FIT cuts until Sept. 30, under amendments added to the legislation.

BSW-Solar, Germany's solar association, has criticized the government's efforts to reduce support for solar power and curb rising installation numbers.

‘The governing coalition appears determined to pursue the political goal of slowing the pace of the new installation of solar power systems by at least half, relative to the previous years 2011 and 2010,’ BSW-Solar said in a recent statement.

The group fears that by 2013, a ‘major collapse’ will occur in the German solar market – threatening more than 100,000 direct and indirect solar-sector jobs.

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