Following the regular reduction of 10 % in the feed-in tariff (FiT) for the electricity fed into the grid by PV installations at the beginning of the year, the new German Environment Minister, Norbert Röttgen, has announced further drastic cutbacks in the FiT for solar-generated electricity. Depending on the amount of installed capacity by the end of September 2010, the FiT could fall be around 40% from that offered at the beginning of 2010. This represents a substantial change of tack by the new government with respect to its energy policy.

The IPVEA, which represents machine and equipment manufacturers as well as producers of raw materials used in the production of PV ingots, wafers, cells (crystalline and thin-film) and panel manufacturers, has called on the German government to introduce measured and predictable steps relating to changes in the PV FiT. If not, the IPVEA warns, thousands of jobs in the solar sector in Germany could be threatened, with an unpredictable impact on the rest of Europe. Furthermore, there are concerns that technology will migrate to cheaper Asian countries, closely followed by production and further jobs.

The industry is especially concerned that medium-sized companies and suppliers as well as installation companies, which relied on the domestic market and government support, will be affected. This will not only impact on solar cell and panel producers but also on the engineering sector.

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IPVEA