Germany’s coalition government has released the draft of long-awaited cuts to solar subsidies and they’re… not that bad.
The government will cut subsidies by 15 percent for solar parks built after July 1, Bloomberg reports, and rates for systems on brownfield sites such as former dumps and army bases will be cut 11 percent. Rooftop systems will see rates drop 16 percent.
Farmland used for solar purposes won’t be subsidized after July 1.
The changes in the subsidy system could still change so watch for debate in Germany’s federal parliament on Feb. 26.
The impact of the changes on shares of solar companies still isn’t clear, though Commerzbank AG analyst Robert Schramm tells Bloomberg that Phoenix Solar will benefit, as will Q-Cells.
All of the back and forth over the cuts has caused skittish investors to pull back on the stocks in recent months.
Vishal Shah also took a bearish view on solar stocks yesterday, citing signs that demand will flag beyond 2010, declining sector profitability and worries that California utilities will be less motivated to install solar after the 2010 renewable portfolio standard.
Shah also believes that a national renewable portfolio standard could take a while to pass.