Seeking Alpha

Solar stocks fall as Germany eyes fresh subsidy cuts

  • New German energy minister Sigmar Gabriel has outlined fresh solar, wind, and biogas subsidy cuts. The proposed cuts, which have already drawn criticism from politicians and the local solar industry, would come on top of 2012 cuts imposed by Europe's largest solar market.
  • Citing a wish to curb electricity bill increases caused by renewable energy subsidies, Gabriel is proposing (among other things) to lower Germany's renewable feed-in tariff to €0.12/kWH from €0.17/kWh, and to limit annual solar capacity expansion to 2.5GW.
  • He also proposes operators of new 500KW or larger solar plants sell their electricity directly by 2015, and to replace feed-in tariffs with a tender system by 2017. In addition, a self-consumption surcharge is proposed for certain new solar installations.
  • Solar stocks are seeing some profit-taking (TAN -2.6%) following the news. Notable decliners: FSLR -2.3%. JKS -2.9%. SUNE -2.8%. DQ -3.3%. YGE -2.8%. SOL -2.6%. SOL -2.6%. TSL -1.5%. CSUN -2.1%.
Comments (4)
  • Randal James
    , contributor
    Comments (2326) | Send Message
    Do I understand this correctly? A self-consumption surcharge? You pay a few thousand or more to set an installation on your own roof and the government wants a cut of what you consume?


    In the words of John McEnroe, "You can not be serious!"


    Country Joe MacDonald (Woodstock) would be more blunt: "Gimme an F!"
    21 Jan, 01:44 PM Reply Like
  • hneumann
    , contributor
    Comments (560) | Send Message
    "John McEnroe". The 'big Mac' ? Don't worry, solar will keep on booming for many years to come. As written above: it's just some profit taking. Germany is a small piece of the worldcake for solar, and it is a proposed cut.
    21 Jan, 01:52 PM Reply Like
  • moreofthesame
    , contributor
    Comments (743) | Send Message
    The utility companies/ tax police will eventually try everything to get money out of systems like solar which draw energy from a uncontrollable source aka the sun. Its highway robbery.
    21 Jan, 02:31 PM Reply Like
  • marloo
    , contributor
    Comments (17) | Send Message
    Govrment is sick.
    21 Jan, 04:23 PM Reply Like
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