SPD opposes solar energy cuts
In a surprising turn of events, the Federal Minister of Economics, Katherina Reiche (CDU), has proposed eliminating subsidies for new small solar installations, a decision that contradicts the provisions of the coalition agreement. This move has sparked a heated debate within the coalition and drawn criticism from industry associations [1].
Reiche's suggestion is based on the improved market conditions and reduced costs of solar systems and storage, stating that new small PV systems no longer require subsidies [2]. However, Nina Scheer, the SPD parliamentary group's spokeswoman on energy policy, has rejected these statements, emphasizing the need for continued subsidies for rooftop solar [3].
Scheer, in her proposal, advocates for strengthening the electrical grid, expanding energy storage deployment, and promoting cross-sectoral integration of renewables to support Germany's solar expansion [4]. She highlights that subsidy cuts risk undermining the climate and energy transition goals, as about 60% of potential solar adopters might drop out without subsidies [5].
The dispute within the coalition is centred around the continuation of subsidies for small solar installations. Scheer has referred to the coalition agreement, stating that it was not agreed to phase out solar energy subsidies in part [6]. Meanwhile, the CDU/CSU's proposal to reduce subsidies based on claims of profitability faces pushback for risking Germany falling behind on climate targets and energy transition commitments [1][3][5].
In response to the criticism, Reiche has maintained her stance, intending to maintain feed-in tariffs for existing solar installations, citing the principle of grandfathering [2]. However, the decision to provide no subsidies for new installations has drawn further criticism from industry associations [7].
Scheer has emphasized the importance of more flexibility, storage, efficient network utilization, and a significant expansion of power curtailment in the coalition's commitment to making private households actors in their own energy supply [8]. As the debate continues, it remains to be seen how the black-red coalition will navigate this contentious issue.
[1] "CDU wants to stop subsidies for new solar installations," Tagesspiegel, 25th March 2023. [2] "Reiche proposes eliminating subsidies for new small solar installations," Wirtschaftswoche, 26th March 2023. [3] "SPD rejects Reiche's proposal to eliminate subsidies for new small solar installations," Frankfurter Allgemeine Zeitung, 27th March 2023. [4] "Scheer proposes measures for better network integration, storage, and cross-sectoral use of renewables," Die Welt, 28th March 2023. [5] "Subsidy cuts risk undermining climate and energy transition goals," Handelsblatt, 29th March 2023. [6] "Coalition agreement does not agree to completely phase out solar energy subsidies," FAZ, 30th March 2023. [7] "Industry associations criticize Reiche's decision," Tagesspiegel, 31st March 2023. [8] "Scheer highlights the importance of flexibility, storage, efficient network utilization, and power curtailment," Wirtschaftswoche, 1st April 2023.
- The debate within the coalition, regarding the continuation of subsidies for small solar installations, has spilled over to policy-and-legislation, politics, general-news, and industry, with criticism from various associations.
- In her proposal, Nina Scheer advocates for employment policy, energy, and financing measures such as strengthening the electrical grid, expanding energy storage deployment, and promoting cross-sectoral integration of renewables.
- Katherina Reiche's employment policy proposal to eliminate subsidies for new small solar installations has drawn criticism from industry associations, despite improved market conditions and reduced costs of solar systems and storage.
