The long-running saga surrounding proposed reforms to incentives in two of Europe's largest solar energy markets appears to be nearing its dénouement, after reports yesterday from Germany and Italy suggested announcements on the two countries' feed-in tariff schemes are imminent.
A German government source told Reuters yesterday that the cabinet had, as expected, approved proposed cuts of 16 per cent to solar power incentives.
The cuts, which are expected to be approved in the German parliament later this month, will come into effect from the start of July.
A smaller cut of 11 per cent in the incentives for solar installations on so-called conversion sites such as disused army bases and landfill sites will also come into effect on the same date, while incentives for solar panels deployed on converted farmland will be removed altogether. Installations on non-agricultural fields will reportedly face a tariff cut of 15 per cent.
The cuts, which are being pursued by the government in an attempt to track the falling price of solar panels in the German market, are less severe than original proposals for a larger reduction in incentives for rooftop solar panels that would have come into effect from last month.
However, a number of solar firms have expressed fears that the changes will slow the sector's recovery and undermine one of Europe's most vibrant renewable energy markets.
Meanwhile, Italian industry minister Claudio Scajola hinted yesterday that he would present a long-awaited solar incentive scheme at a meeting later today.
The Italian government is expected to mirror its German counterpart and cut feed-in tariffs for solar power in line with falling costs across the sector. However, the plan has been repeatedly delayed as a result of regional elections later this month.
Solar firms operating in Italy have become increasingly concerned about the lack of clarity surrounding the new scheme, particularly given the current incentive scheme is set to expire when installed capacity, currently in excess of 1,000MW, reaches 1,200MW.
Latest reports suggest 16 per cent cut in tariffs for solar PV to take effect in July 24 Feb 2010
Government sources tell Reuters they expect Bundesrat to vote against proposed cuts to solar panel feed-in tariffs 03 Jun 2010
Feed-in tariff cuts of up to 30 per cent expected next year 09 Jul 2010Parliamentary committee recommends phasing in of feed-in tariff cuts over the next three months 06 Jul 2010Controversial reductions in German feed-in tariffs could be held back until the summer 11 Feb 2010
Power supplier urges companies with complex or foreign ownership structures to engage with the Environment Agency immediately 30 Jul 2010
Danish firm’s swan song gives way to new turbine blade maker on Isle of Wight 30 Jul 2010
Memorandum signed with Energy Department to use more renewables 30 Jul 2010
More news
Energy analyst's report questions wisdom of DECC’s energy review 29 Jul 2010
Telecity becomes 300th organisation to get the Trust’s official stamp for ongoing carbon reduction 28 Jul 2010
The price of decarbonising versus the price of business as usual: both are variables 28 Jul 2010 More in-depth
