UPDATE 1-German parties seek solar cuts from 2010-paper

(Adds details)

BERLIN Oct 15 (Reuters) - Economic experts in German Chancellor Angela Merkel's conservatives and the Free Democrats (FDP) have agreed to allow cuts in solar energy support levels from next year, a draft paper from coalition talks showed.

The draft text agreed by an economic working group, seen by Reuters on Thursday, said the deal would allow for state-mandated feed-in tariffs -- which utilities have to pay for solar power -- to be lowered quickly.

"The government ... will agree a draft law by Dec. 31 with new support conditions and pay rates for photovoltaics. That way we will protect consumers from unjustified burdens and correct ecological incentives that have been misplaced," it said.

The source added that the parties wanted to do a thorough review of the Renewable Energy Act (EEG) in 2010.

The paper also said that a single German power grid the two plan to create should be suitable for a stock market listing.

(Reporting by Markus Wacket, writing by Sarah Marsh; Editing by Keiron Henderson)