An interesting, and unclassified perspective on the German political landscape two years ago. Feed In Tariffs are responsible for Germany leading the world in solar PV technology and adoption. Ontario recently cut their FIT for solar. In Germany, electricity customers pay a surcharge to help fund the excellent rates paid to solar power adopters.
The Crisis of Germany’s Solar-Panel Manufacturers ——————————- ¶7. (U) In spite of the tariffs, Germany’s solar energy industry has lost market share to competitors. China’s solar industry, which has gained 30 percent of the market share since 2009, particularly benefits from on-going demand for solar panels, often from German consumers, as well as lower labor costs. Global economic conditions further damaged Germany’s solar industry. Following the global financial crisis, many banks have been unwilling to finance major solar projects. As a result, German companies have cut jobs and changed manufacturing practices. Saxony-Anhalt-based, Q- cells, for example, plans to lay off 500 employees. The company now ships solar cells to China for final assembly. Similarly, Bonn-based SolarWorld completed in 2009 construction of a factory in South Korea. Comment ——– ¶8. (U) Some German lawmakers and companies forecast a shaky future for the country’s solar industry if the government removes too much financial support. The cuts may not leave breathing room for investments to compete internationally.
You can compare the US document with the news story here.
Most of the industry’s leaders — such as Yingli and Suntech from China, Q-Cells and SMA Solar from Germany and U.S. groups First Solar and SunPower — have big sales exposure to Germany.
“This is negative for the whole sector as the mentioned cuts are not only higher than the 10 percent expected, but in particular would also be implemented one quarter earlier,” UniCredit analyst Michael Tappeiner wrote to clients.
“In addition, the subsidy cuts would initially reduce investment returns in the ground-mounted solar park segment to unattractive levels,” he added.
Some more discussion of this information.
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