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Competitive, My Foot: Solar Panel Installations Collapse As German Govt Cuts Subsidies


Lower subsidies in Germany cut the installation of solar panels sharply in the first quarter, data from its energy regulator showed on Wednesday. Installations fell 41 percent to 460 megawatts (MW) compared with the same period a year earlier.

“This development is mainly due to the steady decrease in subsidies,” said the Bonn-based Bundesnetzagentur (BnetzA).

The additions in the last three months brought the total of installed capacity to 36.2 GW.

Additions already last year had halved over 2012 to 3.3 GW.

The government over the past two years introduced curbs to feed-in tariffs, as they contributed to sharply higher power prices for consumers who share the subsidy bill.

It also defined a target for annual additions in a 2.5 to 3.5 GW range which, if it is overshot, triggers a sharper fall in the level of payouts. The current sums for the past 12 months are within the corridor, BnetzA said

Germany still has the world’s largest installed solar capacity, which was built up thanks to guaranteed payouts for a 20-year period.

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