* German solar industry association welcomes move
* Shares in German solar stocks gain after news
(adds BSW managing director, background)
BERLIN, March 26 (Reuters) - 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 solar incentives.
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 these recommendations.
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 Mahlich)