Renewable energies: Business association criticizes planned cuts in solar funding


The Federal Association of the Solar Industry has approved the planned cuts in solar funding by the Federal Minister of Economics Katherina Reiche (CDU) criticized. The plans make it difficult for millions of private households and medium-sized companies to access inexpensive and climate-friendly solar power from their own roofs, said Managing Director Carsten Körnig.

»This means that countless local companies and craft businesses are deprived of their customers and business base. The planned cuts in solar funding would otherwise hinder the expansion of solar energy Solar energy in Germany and endanger tens of thousands of jobs,” said Körnig.

So far, small photovoltaic systems have received subsidies for every kilowatt hour of electricity for over 20 years. The Federal Ministry of Economics wants this from 2027 stop this funding for systems with an installed capacity of less than 25 kilowatts, as can be seen from a draft law that is also available to ZEIT. Small solar systems in particular are now often economical without additional funding due to reduced costs, the argument goes. This means that Reiche sticks with plans that had already become known.

Reiche’s draft laws still have to be approved by the federal cabinet. There could be major negotiations within the coalition. The energy policy spokeswoman for the SPD parliamentary group, Nina Scheer, warned that the plans would slow down the energy transition. Canceling funding for small solar systems risks the loss of “indispensable players, areas and quantities of electricity”.

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