The German government is considering slashing the solar subsidies that have helped make the country the largest market for solar panels in the world. With an estimated 1.5 million solar systems throughout the country, the industry sits at an estimated $8.8 billion a year. Solar providers are currently guaranteed 47 euro cents for every kWh of power they generate. Although the government has not made a final decision on the cuts, proposals range from 9.1% to 30%.
Industry participants feel that the cuts will have serious consequences, including the closure of smaller businesses, impacting the 40,000 people employed in the industry. The government wants to stop the industry from growing too fast. Since German demand is so large, they’re buying panels from out of the country, effectively subsidizing the industry around the world.
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Germany Slashes Solar Subsidies, Threatening Industry