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    Germany to cut subsidies for solar power

    BERLIN (AP) — Germany plans to reduce government subsidies supporting solar power by up to 30 percent within a year because higher-than-expected demand has made the scheme far more costly than authorities initially expected.

    The country's drive to abandon nuclear energy in the wake of Japan's Fukushima nuclear disaster has led to a boom in solar power installations last year that vastly exceeded the government's forecasts.

    Owners of solar power installations in Germany receive a guaranteed above-market price for the electricity they sell to the energy grid. That amounted last year to a subsidy of some euro6 billion ($7.9 billion), which is financed through a levy on every household's electricity bill.

    Homeowners and private investors installed new solar power capacity of about 7,500 megawatts last year, while the government had only forecast a new capacity from 2,500 megawatts to 3,500 megawatts.

    Solar power has become more competitive, making room for cuts to the subsidies, and showing that it is "a success story amid the country's transformation toward renewable energies," Environment Minister Norbert Roettgen said.

    The government therefore wants to lower the guaranteed prices starting next month, he added. An initial cut of more than 20 percent will be deepened progressively so that the price will be on average some 30 percent lower by next January.

    The subsidy system is staggered to give smaller installations stronger backing, and will continue to be so, with the guaranteed price per kilowatt-hour set to fall from currently 24.43 cents to 18.15 cents by January. Facilities with a capacity of more than 10 megawatts will no longer be subsidized.

    The Cabinet is set to endorse the program next week, and parliament is likely to swiftly approve the legislation to hinder a last-minute run on investors seeking to quickly install more solar power capacity before the cuts take effect, Roettgen said.

    German companies producing solar panels, already under pressure from stiff competition from new manufacturers in China, protested against the new cuts. Several thousand employees of about 50 firms in the segment held protest rallies across the country, the German Solar Industry Association said.

    Energy from renewable sources — such as wind, solar, geothermal and bioenergy — covered 20 percent of Germany's electricity needs last year and the country aims at boosting that share to a third within a decade as it gradually phases out nuclear power.

     

    41 comments

    • Adventure  •  3 mths ago
      Have they consulted with Mr. Gore?
      • Terry 3 mths ago
        Global warming IS NOT real ! Al Gore IS NOT real ! Santa Claus IS NOT real ! Climate change is real, but has nothing to do with Global Warming! The word "Renewable" was made up by the lib tards ! We must have coal and oil ! Why, you might ask ! Because I like to see at night ! I like to stay warm in the winter ! I like to stay cool in the summer ! DRILL-BABY-DRILL !
      • nomraun 2 mths ago
        Haha hopefully Terry is just a good satirist
    • Thunderstud  •  3 mths ago
      $0.24/KWH??? GTFO What are the germans paying for electricity? That's sick.
      • Fritz 3 mths ago
        Its € 0,24. Europe has the cent, too.
      • Thunderstud 3 mths ago
        Dude that's even worse your euro is worth more than the USD.
      • MarioE 3 mths ago
        That price is the cost of electricity in third world countries... the poorer the expensive the energy is!!
    • Darryl B  •  Browns Mills, New Jersey  •  3 mths ago
      And then there was SOLYNDRA !!!!?????
    • Michael  •  Gilbert, South Carolina  •  3 mths ago
      Now I've seen it all, socialized electricity. Why not give subsidies for using solar? Because too many people may use it and it would cost the government too much money. At least the German Government decided to give the subsidys to people and not give it to Solindra.
    • ......  •  2 mths ago
      why don't they build solar panels around the wind turbines? get as much use out of the land as possible...
    • JDAM  •  3 mths ago
      Only idiots think solar panels can produce power dusk to dawn
      In Germany Solar panel only produce power for 4.5 hours a day.
      Because of bad weather Germany produced no solar power the entire month of December
    • Joshua  •  Capitol Heights, Maryland  •  3 mths ago
      Solar hot water is cheaper than photovoltaics. Israel mandates them on houses built. I don't think we need laws to mandate these things but if new housing integrates these simple devices combined with better insulation of homes and windows, we can cut our energy usage by nearly half.
      • veteran 3 mths ago
        and stop play ststions computer use tv watching etc oh yes and major manufactureing
    • Joshua  •  Capitol Heights, Maryland  •  3 mths ago
      In general this has all been an attempt to control the lives of people to an even further degree. What better topic than climate change or oil fears because it touches nearly every aspect of our lives. What kind of car you own, the kind of bulb you screw in. Europe despite a tendency to typically be colder than America on average has higher heat related fatalities. Temperatures that kill hundreds in Europe are quite common in say...Dallas. European cities are virtually devoid of air conditioning in large part because the energy to run them is so expensive. And why is that? Pressured by vocal environmentalists, European governments have levied energy tax after energy tax, with the latest excuse being global warming. Their way to stop global warming, of course, is to restrict the use of energy, which can only be accomplished by raising the price to a level at which people begin to self-ration their consumption. This is how trade wars get started, this is how revolts, revolutions and the gruesome execution of aristocracies took place. Ive seen information regarding Europe's energy policy and I'm surprised those citizens haven't revolted. Thanks to immense subsidies and heavy taxation; Greece is broke, Italy is broke, Spain and Portugal are nearly broke. It's too bad that the Kyoto Protocol or various legislation will do nothing measurable about the Earth's average temperature for the foreseeable future. But it will kill thousands and thousands more in France, Germany and England, where energy taxes are enormous, creating purposeful blackouts.
    • ThomasB  •  Philadelphia, Pennsylvania  •  3 mths ago
      Solar and wind is not the answer. It's a good move in the right direction, but not the answer. It may not seem like much now, but one day land availibility will be brutal, because of the vast amounts of land it takes to build these huge Sun/wind farms. Add to that, rising metal prices for affordable batteries for storage. Also when it dawns on home owners how much they'll be paying to reroof a house with solar panels on it, and that all profits just went out the window; they will stop installing them.
    • Gary  •  3 mths ago
      Good sign for solar. cheaper costs = lower subsidies + higher volumes. finally
      • Terry 3 mths ago
        It's not cheap ! Only the filty rich can afford to convert ! Do your home work !
      • Carlos 3 mths ago
        Hey Terry....I bet they wont have to pay to keep an army in the middle east....ever think about that one?
    • Brian  •  North Woodstock, New Hampshire  •  3 mths ago
      every solar panel,windmill,heat pump etc. the better the sooner oil takes a backseat to greenenergy the better!
      • Terry 3 mths ago
        Global warming IS NOT real ! Al Gore IS NOT real ! Santa Claus IS NOT real ! Climate change is real, but has nothing to do with Global Warming! The word "Renewable" was made up by the lib tards ! We must have coal and oil ! Why, you might ask ! Because I like to see at night ! I like to stay warm in the winter ! I like to stay cool in the summer ! DRILL-BABY-DRILL !
      • Brian 3 mths ago
        do you like giving billions every year to countries that hate us too?
    • thetnrebel  •  Nashville, Tennessee  •  3 mths ago
      18 to 23 cents a kwh? I looked at my bill last month, here in tennessee I am paying 8.5 cents a KWH... I had better be quite about this cause Obama want my electric bill to go up...
      But i am working on solar panels.. I have about 1000 watts and a 50 wind power generator
      but it cost me far more for those than the current electric bill
    • JDAM  •  3 mths ago
      In Germany solar panels only produce power for 4 hours day on average.
    • strategy101  •  3 mths ago
      that #$%$ Energizer bunny!
    • veteran  •  Dallas, Texas  •  3 mths ago
      and they are shutting down there nucs as well
    • WebReb  •  Seattle, Washington  •  3 mths ago
      According to Wikipedia, 3% of German electricity was supplied by solar power in 2011. No where near 20% as this article would lead you to believe.
    • Joshua  •  Capitol Heights, Maryland  •  3 mths ago
      If it's such a success story why is Germany building coal plants? The German Parliament has made a precedent setting move, not only have they set a plan to phase out all nuclear by 2022, but the Parliament has committed to renewable energy like wind and solar as the replacement. The goal to help Germany with its objective to reduce carbon pollution 40% by 2020. The truth is Germany alone is already nearing completion of 13 Gigawatts of fossil fuel plants, mainly coal-fired, and is planning to build an additional 10 Gigawatts of such plants to meet it's energy demands in order for them to keep operating in an industrial economy. Every major renewable energy source has drawn criticism from leading environmental groups: hydro for river habitat destruction, wind for avian mortality, solar for desert overdevelopment, biomass for air emissions and soil depletion, and geothermal for depletion and toxic discharges. Why is Greenpeace helping Germany with deception that they'll shift away from coal fueled power plants and claiming that this will help Germany to achieve a 40% reduction in carbon pollution”by 2020 when it is obvious that there will be a large increase in carbon emissions as a result of the closing of nuclear plants and the opening of an equivalent number of coal and gas plants? Could it be because Germany is Greenpeace’s biggest source of funding and that Greenpeace wishes the public to think this is a great victory for the environment. Highly subsidized solar is eclipsed, as demonstrated by the recent bankruptcy of Evergreen Solar in Massachusetts or Solyndra even after our government support. Germany is reducing the subsidies because they're going broke and their attempt to pass new taxes such as the new airline emissions fee to prop up Greece and keep them afloat. Suntech, the world's largest producer of solar panels has seen its shares plunge 88 percent. In the beginning, Germans paid a "feed-in tariff" of 65 cents per kilowatt-hour for power from the roof; the total comparable cost for power from a new gas plant in the United States is about 6 cents. A grand total of 1.9 percent of Germany's power comes from solar. Spain's massive solar subsidy program soon got out of hand too, sending the country further and further into hock, and Spain finally cut it back, which further tanked the solar industry, which never should have expanded so much given a nearly 18 percent unemployment rate. The contagion spread to the United Kingdom in the form of wind mills but political rebellion in the UK spread and in response, Prime Minister David Cameron, who promised the "greenest government ever" recently cut the solar feed-in tariff in Britain by 50 percent. The bottom line is that wind and solar power are simply uncompetitive. Because of the inconstancy of the wind and the rotation of Earth, backup capacity (gas or coal) of more than the average power production from "renewables" must be in place to preserve electrical stability. This capacity increasingly is in the form of natural-gas generation. The discovery of hundreds of years of natural gas in worldwide shale deposits guarantees that solar and wind will not produce much of the world's power for the foreseeable future.
    • Adrian  •  Richmond, Virginia  •  3 mths ago
      Doesn't matter is Obama is listening or not. He thinks he is smarter than anyone else.
    • Mike  •  Macomb, Illinois  •  3 mths ago
      Govt shouldn't subsidize anything beyond R&D. All the rest should depend on what the consumer will bear. In any country.
    • Don  •  3 mths ago
      The Government shouldn't have to subsidize something that will work on it's own. A good idea and product will take care of itself!
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