Cut

German solar incentive cut delayed to April: sources

Reuters News
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Posted: Mar 02, 2012 11:23 AM

BERLIN (Reuters) - Members of parliament in Chancellor Angela Merkel's centre-right coalition have demanded delaying cuts in solar power incentives to April 1 from March 9, according to a position paper by centre-right deputies obtained by Reuters on Friday.

Resistance to the March 9 cuts has especially strong in the Christian Social Union (CSU), the Bavarian sister party to Merkel's Christian Democrats (CDU), as well as in the CDU itself.

Members of parliament in the ruling coalition had complained that the March 9 date for the incentive cuts would damage confidence among suppliers and dealers in the photovoltaic industry, which has more than 100,000 jobs in Germany.

Merkel's cabinet endorsed a plan by the Economy and Environment ministries to cut solar power incentives by between 20 and 30 percent from March 9.

The CSU is also opposed to the plans that would cut incentives by 30 percent for large solar power plants of more than 1,000 kilowatts. The CSU will only agree to cuts of 15 percent, sources said.

(Reporting By Markus Wacket; writing by Erik Kirschbaum)