Federal and State Governments Agree to Solar Promotion

(PresseBox) (Bonn/ Berlin, ) The Mediation Committee of the Bundestag and Bundesrat agreed on a compromise last night regarding solar promotions. A limit of 52 GW is to be put on photovoltaic installations. Furthermore, for medium-sized roof system a class size will be introduced.

Federal and provincial governments reached an agreement yesterday evening regarding solar subsidies. The Mediation Committee of the Federal Council has approved the proposal of a working group made up of the government and the opposition. The date of the funding cut, backdated to 1 April, remains the same. The fees will be charged throughout the year accordingly.

The amount of reductions has largely remained unchanged and is, depending on system size, between 20 and 30 percent. However, a class size for medium-sized rooftop plants from 10 kW to 40 kW will be introduced. They will receive a grant of 18.5 cents / kWh for 90 percent of the electricity generated. Originally only a class size between 10 kW and 1,000 kW was planned. The investment segment 10-40 kWp in 2011 made more than 1.8 GW, amounting to a quarter of the market. A similar growth pattern can also be expected for this class size in 2012, which already shows an installed capacity of 600 MWp in the first four months.

The following rates will take effect from 1st April 2012:
- 0 to 10 kWp: 19.5 Cent
- 10 to 40 kWp: 18.5 Cent
- 40 to 1,000 kWp: 16.5 Cent
- 1,000 to 10,000 kWp: 13.5 Cent
- Open spaces up to 10 MW: 13.5 Cent

The parties also agreed to cap the subsidy for solar power with a total of 52 GW. If this quantity is reached, plant operators will therefore no longer be supported. There are currently about 28 GW installed in Germany. As part of the current compromise, the Federal Government has agreed to submit a proposal, in time for further action, if the 52 GW has been achieved. Until this amount has been reached, the annual expansion from 2.5 to 3.5 GW remains without reduced funding. In the original version of the agreement, the expansion scale was to be gradually reduced.

The funding limit for solar power plants of 10 MW size remains maintained. However, for a fusion of open space plants a radius of 2 kilometers instead of 4 kilometers will come into effect in the futures.

The federal government has also guaranteed to introduce a market incentive program for energy storage technologies. From 1st January 2013, 50 million euro is to be made available.

The compromise preceded a lengthy dispute firstly with the ministries of economics and the environment which then lead to a federal and state legislative process.

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