German Environment Minister Norbert Roettgen
The German Environment Ministry is considering delaying the proposed 15 percent cut in its feed-in tariff, which utilities are obligated to pay solar power producers, by one month. Under the new proposal the cuts would come into effect on May 1 rather than April 1.
Also, citing sources close to Environment Minister Norbert Roettgen, Reuters reports that additional subsidy cuts, slated to come into effect in 2011, could actually be steeper than originally planed.
Roettgen is considering a 3.5 percent cut in subsidies next year — instead of the planned 2.5 percent — If there are more than 3,500 megawatts of solar power capacity installed over a 12-month period, according to Reuters.
Barclays Capital Vishal Shah says the one-month delay could add between 400 megawatts and 500 megawatts of new installations.
In a note emailed this morning Shah also predicts that demand for solar panels in Germany could actually increase this year in anticipation of the steeper cuts in the country’s feed-in tariff slated for 2011. He writes:
A greater subsidy cut from 2011, further supports our view that 2H10 demand in German could increase in anticipation of another FiT change in 2011.
Solar power companies in Germany have said the cut in the feed-in tariff are too steep and could kill jobs.
Image: Die Bundesregierung