Oil Report

Germany's BSW warns against double-digit FIT cut

BERLIN, Jan 15 (Reuters) - A double-digit reduction in solar feed-in tariffs in the middle of 2010 would ruin many German firms and end Germany’s worldwide leadership in solar technology, Germany’s BSW solar industry association said on Friday.

Carsten Koernig, managing director of the BSW solar industry lobby, told Reuters that a steep cut in 2010 beyond the scheduled 10 percent cut that took effect in January would likely end up knocking many German solar firms out of business.

“If there were an additional double-digit percentage cut in solar incentives beyond the existing cuts already in law it would probably spell the end of many solar companies and be the end of Germany’s solar technology leadership,” Koernig said. Government and industry sources told Reuters on Thursday the government plans to slash solar feed-in tariffs much deeper and sooner than expected.

The sources said that the government envisaged a one-off cut in feed-in tariffs for new roof and open-field sites from April by between 16 percent and 17 percent in addition to the annual decline that it set out in the country’s Renewable Energy Act (EEG).

Reporting by Erik Kirschbaum