According to the Spanish industry ministry, the current feed-in tariffs for photovoltaic installation might experience a cut of 45 percent.
Plans to reduce solar photovoltaic installation were reported by the Spanish government. The announced plans are expected to slash support current installations.
The Industry Ministry proposed a step-by-step slash in feed-in tariffs. A 45 percent cut for ground-based solar PV panels, 25 percent for large roof-based system and 5 percent for small roof-based systems.
The current suggestions are akin to parallel reduction proclaimed in Italy and Germany. These reports are actually being reviewed by the Spain’s energy regulation.
The scale of the cuts has been discussed. Moreover, energy firms and the government did finally find a conclusion last week.
The main argument put forward by the government was that the industry would no longer need financial support as the cost of solar panels has been falling drastically. The ministers did even suggest that retroactive cuts could be introduced. The Spanish government is cutting financial support for solar PV installation as an attempt to limit the country’s energy bill.
The current cuts will only apply to new installations. According to industry insiders, this contracting strategy might halt Spain’s flourishing solar industry.
Recently, similar but smaller cuts were anticipated for solar thermal and wind energy projects.
Mutual agreement between solar thermal power plant trade association Protermosolar and the Ministry of Industry, Spanish Wind Energy Association as well as Tourism and Trade did soften the subsidy cuts. They agreed to implement a gradual phasing out of the subsidy reduction over a period of three years.
Source: Guardian
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