* German solar industry association welcomes move
* Shares in German solar stocks gain after news
(adds BSW managing director, background)
BERLIN, March 26 Germany's Bundesrat upper house
of parliament on Friday called for cuts to solar power
incentives to be no deeper than 10 percent, boosting solar
stocks and gaining approval from the industry's association.
The Bundesrat, which has no real power to stop or slow down
the law, urged the government to soften its plans for cuts to
Germany's upper house represents the governments of the 16
German states, some of which are home to large solar production
plants and have an interest in smaller reductions.
However, changes to the draft law, which was debated in the
lower house of parliament on Thursday, are expected.
Berlin is set to reduce from July the feed-in power tariffs
that solar power generators have to be paid for their
electricity, with proposed cuts of 16 percent for new
roof-installed panels. [ID:nLDE6220NE]
"This is a strong signal of the states against the federal
government," Carsten Koernig, managing director of German solar
industry association BSW told Reuters.
"The solar industry can draw new hope now," he said, adding
that the main issue was whether the government would follow
Shares in German solar companies gained on the news, with
SolarWorld AG SWVG.DE, Q-Cells AG QCEG.DE, Conergy CGYG.DE
and Phoenix Solar (PS4G.DE) being up between 0.7 and 1.6 percent
by 1549 GMT, outperforming the FTSE cleantech index .FTET50.
(Reporting by Markus Wacket and Anneli Palmen; Editing by Greg