The government of Spain plans to reduce the revenue for most of the country's existing solar power plants by 30%. The change threatens to bankrupt most of Spain's 600 photovoltaic plant operations, Tomas Diaz, director of external relations at the Photovoltaic Industry Association in Madrid, told BusinessWeek.
Following discussions with industry groups, the government has decided to reduce the number of hours per day during which existing PV plants can earn subsidies. For projects built in the future, subsidies for ground-mounted plants will be reduced by 45%. Large rooftop installations face a 25% reduction, and small rooftop installations will see their subsidies cut by 5%, according to BusinessWeek. These cuts do not apply to concentrating solar plants.