News | Energy Efficiency

http://www.newenergyworldnetwork.com/renewable-energy-news/by-technology/solar/germany-may-make-additional-cuts-to-feed-in-tariffs.html

The German government is considering deeper cuts to feed-in tariffs (FITs) and issue a 3GW annual cap on new solar installations, according to reports.

FITs, which guarantee producers a price significantly above the market rate for renewable electricity sold to the grid, are already timetabled to be cut by 13 per cent on 1 January, but the cut may be deeper than scheduled.
The energy spokesman, Thomas Bareiss, from Chancellor Angela Merkel’s Christian Democratic Union said the solar industry benefited from, ‘massive over-funding, which leads to perverse incentives’, in a letter to the Environment Minister, Norbert Roettgen, which was seen by the German edition of the Financial Times.
‘From a financial and technical standpoint, the current breakneck expansion of photovoltaic solar threatens to get out of hand,’ said Bareiss.
He suggested making the January cut deeper than planned, following it up with another cut in mid-2011, and considering a 3GW annual on new solar capacity installed.
The news will come as a blow to the solar industry worldwide. Thanks to generous FITs, Germany is currently the world’s largest solar market.