Germany, the world’s largest solar market, announced that it will not reduce subsidies for solar power in July as was previously planned.
A total of 700MW of new solar modules were installed between March and May 2011, less than the 875MW limit which would have prompted a subsidy reduction.
This does not affect the planned 24% subsidy cut scheduled for January 2012.
Germany’s feed-in-tariff laws provide a favorable environment for solar power development. In the wake of Germany’s major policy shift away from nuclear energy, solar will play an even bigger role.
BSW, the German solar industry trade group, says the industry is aiming for 5GW of new solar capacity this year, but some analysts believe with subsidy levels remaining constant through the summer, 5GW may be a conservative estimate and the final tally could be closer to 6 or 7GW. Last year, Germany installed 7.4GW of solar power.