Earth Equity News

Shares of Solar Firms Plummet as Germany Plans Further Cuts in Feed-In Tariffs. Reuters, January 15, 2010. "A potential deep cut in feed-in tariffs in Germany will hit solar companies around the world and increases pressure on large players to reduce exposure to the world's largest photovoltaic market. Analysts say that lower prices could result in a shakeout in the industry that drives higher cost players out of business and dissuades new entrants. Shares in solar firms plummeted after a Reuters report that the German government plans to chop feed-in tariffs -- prices utilities pay generators of renewable energy -- as early as April, much more deeply and sooner than the market expected. Analysts agree that the plans, which envisage a one-off cut of 16-17% on top of the 10% already set out in the German Renewable Act, will deal a major blow to the sector, which the German government thinks is overly subsidized now... Large utilities must pay producers of solar power the feed-in tariffs, which have gradually fallen from 57 euro cents per kw in 2004 to 39 cents this year. The utilities then pass the higher costs to consumers."