Germany, home to the largest share of the world's solar cells, is planning cuts to its solar subsidies of up to 30%, Reuters reports:
The government wants to cut the expansion of solar power after Germany added a record 7,500 megawatts capacity in 2011 to bring its total to 25,000 MW, nearly as much as the rest of the world combined. The government wants to add 2,500-3,500 MW capacity annually, which is why it is cutting the incentives so aggressively after a 15 percent drop on January 1 and after capacity was expanded by over 7,000 MW in both 2010 and 2011.
In the United States, President Obama toured a 58 MW solar power plant in Nevada that was built with the help of federal tax credits of about $42 million. Meanwhile, the Commerce Department is imposing new import fees on solar panels made in China:
"Today's announcement affirms what U.S. manufacturers have long known: Chinese manufacturers have received unfair ... subsidies," Steve Ostrenga, CEO of Helios Solar Works in Milwaukee, said in a statement. The company is a member of a group called the Coalition for American Solar Manufacturing. On the other side, some U.S. companies argue that low-priced Chinese imports have helped consumers and promote rapid growth of the industry.
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