Those subsidies, requiring utilities to pay generously for any solar power brought online, have combined with tumbling photovoltaics prices to spur a solar tsunami, with new installations coming more rapidly than was planned. A side-effect has been to drive up electricity rates for consumers; Germans pay more than twice as much for electricity as Americans, according to a recent Australian study, and only in Denmark are power rates higher.
In its report on May solar production, the BDEW said “the industry generally supports the further development of renewable energy sources and investing billions of dollars annually,” but added that the current solar subsidies situation had to change.
“The present development of electricity from photovoltaic systems and the continued rise (in) legally guaranteed remuneration is currently showing that the unchecked growth continues (and) the expansion of renewable energies and the associated costs are not controlled adequately,” said Hildegard Muller, chairman of the BDEW general management, in a Google translation.
The government’s bid for further cuts to the subsidies stalled in parliament last month. It is opposed by states where the Social Democrats and Greens hold power. Further negotiations on the solar policy are scheduled for this month.
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