Solar stocks fall as Germany eyes fresh subsidy cuts

|By:, SA News Editor

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%.