Coalition Committee: Revised Solar Feed-in Tariff Reduction Proposal

According to Peter Altmaier, Parliamentary Party Secretary of the Christian Democratic Union (CDU), the coalition committee (Koalitionsausschuss) of the ruling CDU/CSU and FDP parties yesterday agreed on cuts of the solar feed-in tariffs starting 1 July 2010, the news agency ddp reported.

The Federal Cabinet shall decide on the necessary changes of the German Renewable Energy Sources Act (EEG) on 3 March 2010. The goal is to avoid over-subsidizing without endangering further expansion of the solar sector.

Reports on details of the reduction still vary and are partly inconsistent.  According to ddp, feed-in tariffs shall be reduced by 16% for new rooftop installations and by 15% for new freestanding installations. New solar installations on agricultural land shall no longer benefit from feed-in tariffs. However, installations near motorways and railway tracks shall still be eligible for feed-in tariffs. The former feed-in tariff system shall continue to apply for freestanding solar installations for which a building permit existed prior to 1 January 2010 and which will feed into the grid by the end of the year.

Other papers like Handelsblatt and Badische Zeitung report of a cut of 16% without differentiating between rooftop installations and freestanding installations.

According to Frankfurter Allgemeine Zeitung, feed-in tariffs for freestanding installations on conversion areas (former waste disposal sites or military sites) shall be cut by 11% starting also 1 July 2010. Payments to owners of rooftop installations that consume their generated electricity themselves shall be increased, Badische Zeitung writes.

ddp also reported that the yearly degression pursuant to the EEG shall be further increased. As of 1 January 2011 the yearly degression of 9% shall increase by a further 2.5% if the newly installed capacity of solar installations exceeds 3500 MW. As of 2012 the degression shall increase by a further 3%.

Sources: ddp Deutscher Depeschendienst GmbH, Frankfurter Allgemeine Zeitung, 24 February 2010, page 12, HandelsblattBadische Zeitung

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